Invoicing decreased by 3.1 (increased 6.4) per cent to EUR 1,641.6 (1,693.5) million
Net sales decreased by 5.0 (decreased 1.2) per cent to EUR 754.9 (794.5) million
Adjusted EBITDA decreased by 7.1 (increased 4.9) per cent to EUR 37.8 (40.7) million
Adjusted EBIT was EUR 24.1 (28.1) million
Profit for the period totalled EUR 15.8 (19.2) million and earnings per share were EUR 0.09 (0.11)
Outlook for 2017
Despite the recent improvements in the performance of the Consumer business, the result of the Business Area in 2017 will remain below 2016 level. The go-live of the IT systems in Finland, planned for June, is postponed to the third quarter of 2017. The delay will result in additional costs in the Services Business Area in 2017. In the Healthcare business the costs for starting the Swedish dose dispensing production for the Norrland region are higher than anticipated, and the result of the Healthcare Business Area will stay negative in 2017.
Oriola has decided to divest its businesses in the Baltic countries. In the Half Year Financial report the Baltic businesses will be classified as discontinued operations and the assets and related liabilities will be classified as Assets for sale. The net sales of the Baltic businesses in 2016 were EUR 54 million and the Adjusted EBIT EUR 1.2 million.
Oriola`s and Kesko`s joint health and wellbeing store chain was approved by the competition authorities in June 2017, and the joint venture agreement was finalized on June 30. Oriola will report 50 per cent of the result of the joint venture in the Consumer Business Area EBIT. The joint venture is expected to be loss making during the build-up phase 2017 - 2019. Oriola`s share of the loss in 2017 is estimated to be EUR 1.5 million.
Oriola revises the guidance for 2017; The Adjusted EBIT of continuing operations on constant currency basis is estimated to decrease from the 2016 level. The adjusted EBIT from continuing operations at comparable currencies, was EUR 59.3 million in 2016.
The previous guidance, published 13 February 2017 and repeated 28 April 2017, was that the Adjusted EBIT on constant currency basis will stay at 2016 level which was EUR 61.1 million.
President and CEO Eero Hautaniemi:
In the second quarter the sales of the Consumer business in Sweden was at previous year`s level in local currency, and the market share remained stable compared to the first quarter of 2017. The growth of the online sales during the second quarter reached 91 per cent and exceeded market growth. The joint venture of Oriola and Kesko received the approval of the competition authority in June. For Oriola the joint venture is a strategic entry into the Finnish consumer business.
The new distribution agreement in Sweden with Meda started in the second quarter. The related investment into our Mölnlycke warehouse was completed and taken into operation. The IT system go-live in Finland, planned for June, was postponed to the third quarter. According to our strategy we continued to expand our service offering to pharmaceutical companies and pharmacies. We signed the agreement to acquire a Swedish services provider, ICTHS Health Support AB in July.
The number of people served by our dose dispensing services grew by more than 20,000 in the first half of 2017 and currently our services reach some 67,000 persons in Sweden and Finland. The ramp up of production for Norrland region in Sweden has taken more time than originally anticipated, and that has affected the first half year`s business result.
We have chosen to concentrate our resources on developing the Consumer, Services and Healthcare businesses in Sweden and Finland. Consequently, we have decided to divest our assets in the Baltic countries.
Key figures, continuing operations
2017
2016
Change
2017
2016
Change
2016
EUR million
4-6
4-6
%
1-6
1-6
%
1-12
Invoicing
844.2
873.6
-3.4
1,641.6
1,693.5
-3.1
3,364.2
Net sales
387.5
407.0
-4.8
754.9
794.5
-5.0
1,588.6
Adjusted EBITDA
19.9
21.0
-5.3
37.8
40.7
-7.1
85.4
Adjusted EBITDA %
5.1
5.2
5.0
5.1
5.4
Adjusted EBIT 1)
13.0
14.5
-10.1
24.1
28.1
-14.3
59.9
EBIT
12.7
13.7
-7.4
23.2
27.3
-14.8
57.6
Adjusted EBIT %
3.4
3.6
3.2
3.5
3.8
EBIT %
3.3
3.4
3.1
3.4
3.6
Profit for the period
8.3
9.5
-12.1
15.8
19.2
-17.8
41.8
Earnings per share, EUR, continuing operations
0.05
0.05
-12.1
0.09
0.11
-17.8
0.23
Earnings per share, EUR, discontinued operations
0.00
0.00
-67.1
0.00
0.00
7.7
0.01
Net cash flow from operating activities 2)
51.3
21.7
36.7
-5.1
40.1
Gross capital expenditure
24.8
35.4
88.6
Total assets 2)
917.5
934.1
925.4
Net interest-bearing debt 2)
84.4
66.2
72.3
Gearing, % 2)
43.5
35.8
35.2
Net debt / 12-month EBITDA 2)
1.0
0.8
0.8
Equity per share, EUR 2)
1.07
1.02
1.13
Equity ratio, % 2)
21.7
20.6
22.7
Return on equity (ROE), % 2)
17.1
21.9
21.4
Return on capital employed (ROCE), % 2)
15.2
17.6
17.8
Average number of shares, 1000 pcs 3)
181,389
181,389
181,389
Average number of personnel
2,701
2,260
2,425
Number of personnel at the end of the period
2,741
2,307
2,669
1) Adjustment items are specified in table "Adjusting items included in EBIT"
2) Includes discontinued operations
3) Treasury shares held by the company not included
Disclosure procedure
This stock exchange release is a summary of Oriola Corporation`s Half Year Financial Report January-June 2017. The complete report is attached to this release in pdf format and is also available on Oriola`s website at www.oriola.com/investors.
Analyst and investor meeting
Oriola Corporation will organize a meeting for investors, analysts and the press on Friday, 21 July 2017 at 10.00 a.m. at Hotel Scandic Simonkenttä, meeting room Tapiola, Simonkatu 9, 00100 Helsinki, Finland.
Next financial report
Oriola Corporation will publish its interim report for January-September 2017 on 25 October 2017.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Oriola Oyj via GlobeNewswire HUG#2121748
