Oriola Corporation Interim Report January March 2020 Q1 2020 - - PowerPoint PPT Presentation

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oriola corporation interim report january march 2020 q1
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Oriola Corporation Interim Report January March 2020 Q1 2020 - - PowerPoint PPT Presentation

Jan 11, 2024 164 likes •406 views

Oriola Corporation Interim Report January March 2020 Q1 2020 highlights Strong invoicing and net sales growth continued, partially driven by COVID-19 pandemic Increase in profit mainly driven by good sales Additional costs

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SLIDE 1

Oriola Corporation Interim Report January – March 2020

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SLIDE 2
  • Strong invoicing and net sales growth

continued, partially driven by COVID-19 pandemic

  • Increase in profit mainly driven by good

sales

  • Additional costs due to pandemic demand

peak

  • Logistics Finland continued solid

performance

  • Ramp-up of distribution centre in Sweden

delayed due to pandemic

  • Commitment to strategic programmes

remains, but day to day operations prioritised in current market environment

Q1 2020 highlights

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SLIDE 3

COVID-19 pandemic impact

  • Extra safety measures for our employees

starting from February

  • Historically high order levels of

pharmaceuticals and cold and pain products from pharmacy customers in Finland and Sweden in March

  • Safeguarding availability of medicines in line

with our purpose “Health for Life”

  • Business environment has changed extremely

fast, as governments’ restrictions impacted consumer behavior in late March

  • Short-term market environment uncertain

24.4.2020 3

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SLIDE 4

4

24.4.2020

Invoicing Net sales Adjusted EBIT1

EUR million EUR million EUR million

Key figures

continuing operations

Q1/2020 adjusted EBIT at comparable EUR/SEK rate EUR 7.1 million

1The figures in 2016–2019 have been restated due to an error

related to previous periods

820 797 848 894 965

897

2 500 2 000 1 500 500 1 000 3 000 3 500 4 000

2016 2017 2018 2019 2020

3 364 3 336 3 518 3 733

388 367 388 397 460

399

800 200 400 600 1 000 1 200 1 400 1 600 1 800

2020

1 589

2016 2017 2018 2019

1 528 1 552 1 721

13.3 10.8 5.8 3.7 6.9

6,6

70 60 10 20 30 40 50

2016 2017 2018 2019 2020

58.7 20.5 39.0 34.4 Q1

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SLIDE 5

Adjusted EBIT1 Adjusted EBIT development1

Adjusted EBIT

EUR million EUR million 5 24.4.2020

1Q1/2020 adjusted EBIT at comparable EUR/SEK rate EUR 7.1 million

3.7 5.6 9.1 2.1 6.9

6 4 2 8 10

2019 Q3 2019 Q4 2019 Q1 2019 Q2 2020 Q1

3.7 6.9 2.6 0.8

2 4 6 8 10

Consumer

0.0

2019 Q1 Pharma Retail

  • 0.3

Group items 2020 Q1

1The figures for Q1-Q3 2019 have been restated due to an error

related to previous periods

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SLIDE 6

Operating environment

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SLIDE 7

24.4.2020

Consumer markets

Market shares

388 397 387 396 48 79 326 187

Market shares are Q1 figures and market size rolling 12 month figure. Source: Apoteksförening

7

397 327 188 79

Pharmacy market Online share of Swedish Pharmacy market

24.4.2020

Oriola/Kronans Apotek 17% (17%) Lloyds Apoteket 4% (3%) Apotek Hjärtat & CURA 31% (31%) Apotea 7% (5%) Apoteket 31% (31%) Apoteksgruppen 9% (9%) Others 2% (3%)

4.6 BEUR

Rx 74% (74%) OTC 9% (9%) TG 17% (17%)

4.6 BEUR

0% 2% 4% 6% 8% 10% 12% 14% 16% 2018 Q2 2017 Q1 2017 Q4 2017 Q2 2017 Q3 2020 Q1 2018 Q1 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4

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SLIDE 8

Finland Wholesale Sweden Wholesale

Wholesale markets

8

Source: LTK and Oriola estimate Source: IQVIA and Oriola estimate

24.4.2020

Pharmaceutical market growth in Q1: Finland 10.9% and Sweden 14.7%

4.5 BEUR

Oriola 46% (40%) Others 54% (60%)

2.8 BEUR

Oriola 43% (45%) Others 57% (55%) Market shares are Q1 figures and market size rolling 12 month figure

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SLIDE 9

Retail markets

9

Market share dose dispensing

Source: Oriola estimate

TG/OTC products supply for pharmacies in Sweden Staffing services in Finland in 167 pharmacies in Q1

  • f a total of 819 pharmacies

25%

from the total market of EUR 1.2 billion

Finland Sweden

24.4.2020

Total 225,000 patients Total 55,000 patients

Oriola 43% (44%) Others 57% (56%) Others 60% (61%) Oriola 40% (39%) Market share is Q1 figure and market size rolling 12 month figure

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SLIDE 10

Business Area reviews Q1 2020

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SLIDE 11

Three customer-centric business areas

24.4.2020 11

Consumer business area

Retail services and products for consumer health and wellbeing in Sweden in Kronans Apotek and in cooperation with Doktor.se.

Pharma business area

Tailored logistics, expert and advisory services for pharmaceutical companies, and a wide range of pharmaceutical products for pharmacies, hospital pharmacies and veterinarians.

Retail business area

A wide range of health and wellbeing products for pharmacies, veterinarians, private and public healthcare operators and retailers, as well as services for pharmacies, including dose services and staffing.

Operations group function

Serving all business areas, focus on logistics operations, direct and indirect sourcing, dose manufacturing.

44% of Group net sales 40% of Group net sales 16% of Group net sales

External Net sales, 2019.

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SLIDE 12
  • Net sales increased by 10.3% to 207.2 M€

in constant currency

  • High sales in March, driven by the

increased demand due to COVID-19 pandemic

  • Kronans Apotek’s online sales continued to

grow (+45% vs the market +48%)

  • Share of OTC and traded goods of net

sales 24.2% (24.8%)

  • Share of low margin RX is increasing

12

Consumer Q1 2020

Adjusted EBIT1

EUR million 24.4.2020

1The figures for Q1-Q3 2019 have been restated due to an error related to previous periods

as reported in December 2019.

2.8 2.9 4.9 1.1 5.4

1 3 2 4 6 5

2019 Q4 2019 Q1 2019 Q2 2019 Q3 2020 Q1

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SLIDE 13
  • Net Sales increased by 22.4% to 244.2 M€,

and in constant currency by 24.2%

  • Sales development driven by

the pharmaceutical market growth, changes in pharmaceuticals distribution agreements and COVID-19 pandemic related demand increase

  • Profitability impacted by the personnel and

freight cost level increase mainly in Sweden due to exceptional COVID-19 volume increase

13

Pharma Q1 2020

Adjusted EBIT

EUR million 24.4.2020

3.5 4.7 5.2 4.2 3.6

5 1 6 2 3 4

2020 Q1 2019 Q1 2019 Q3 2019 Q2 2019 Q4

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SLIDE 14
  • Net sales increased by 8.6% to

121.2 M€, and increased by 10.9% in constant currency

  • Growth driven by number of dose

dispensing patients in Sweden and increased demand for healthcare products at the end of Q1

  • Strong sales in healthcare products in

Finland and growth in dose dispensing impacted EBIT positively

  • High operations costs in Sweden

impacted profitability

14

Retail Q1 2020

Adjusted EBIT

EUR million 24.4.2020

  • 0.6

0.3

  • 0.8
  • 2.0

2.0 0.0

2019 Q1

0.2 0.2

2019 Q2 2019 Q3 2019 Q4 2020 Q1

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SLIDE 15

Financial review Q1 2020

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SLIDE 16

Invoicing

Invoicing and net sales

EUR million 16 24.4.2020

Net sales

EUR million Q1/2020 Net Sales at comparable EUR/SEK rate EUR 468 million Q1/2020 Invoicing at comparable EUR/SEK rate EUR 982 million

979

Invoicing

397 448 429 447 460

150 400 100 50 250 200 350 300 450 500

2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1

894 942 917 979 965

500 1 000 100 600 200 400 300 700 800 900

2019 Q4 2019 Q1 2019 Q2 2019 Q3 2020 Q1

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SLIDE 17

Adjusted EBIT1 Adjusted EBIT development1

Adjusted EBIT

EUR million EUR million 17 24.4.2020

1Q1/2020 adjusted EBIT at comparable EUR/SEK rate EUR 7.1 million

3.7 5.6 9.1 2.1 6.9

4 2 6 8 10

2019 Q1 2019 Q4 2019 Q2 2019 Q3 2020 Q1

3.7 6.9 2.6 0.8

8 2 4 10 6

Group items Pharma 2019 Q1 Consumer

0.0

Retail

  • 0.3

2020 Q1

1The figures for Q1-Q3 2019 have been restated due to an error

related to previous periods

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SLIDE 18

Profit for the period1 Earnings per share1

Profit for the period and earnings per share

EUR EUR million 18 24.4.2020

1The figures for Q1-Q3 2019 have been restated due to an error

related to previous periods

1.7 4.5 2.0 5.1

4 2

  • 2

6

2019 Q1 2019 Q2 2019 Q3

  • 0.2

2019 Q4 2020 Q1

0,04

  • 0,02

0,00 0,02 0,06 0,08

0.01 0.02

2019 Q1 2019 Q2 2019 Q3

0.00

2020 Q1 2019 Q4

0.01 0.03

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19

Cash flow

Quarterly net cash flow from operating activities

EUR million

Q1 YTD 2020 change in cash

EUR million 24.4.2020

70.8 117.7 51.4

40 120 20 60 80 140 100

  • 0.5

Financing activities Cash Q4 2019 Operating activities

  • 4.0

Investing activities Cash Q1 2020

18 48

  • 25

70 13 27

  • 40
  • 20

20 60 40 80

2019 Q3 2018 Q2 2019 Q4

  • 1

3

2018 Q3 2018 Q4 2019 Q1 2019 Q2 2020 Q1

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20

Net Interest-Bearing Debt

Net interest-bearing debt

EUR million 31 Mar 2020 31 Mar 2019 31 Dec 2019 Bank loans (syndicated Bank & term) 56.3 58.6 57.8 Commercial papers 88.9 53.0 35.0 Advance payment from pharmacies 15.4 15.3 13.2 Lease liabilities 79.3 100.2 84.3 Cash and cash equivalents 117.7 27.9 70.8 Net interest-bearing debt¹ 122.2 199.1 119.6 Sold trade receivables 174.9 150.9 166.5 Gearing %² 91.8 129.4 76.1

EUR million 24.4.2020

¹ Figure in Q1 2020 includes EUR 79.0 (99.4) million lease liabilities recognised

due to application of IFRS 16

² Excluding the impact of IFRS 16 gearing would have been 31.2% (62.4%) 100 105 64 199 150 133 120 122

250 100 200 50 150

2019 Q4 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2020 Q1

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Q1 2020 Key take-aways

24.4.2020 21

Strong invoicing and net sales growth continued COVID-19 pandemic effects

  • n business

environment Digital and online gaining importance in the market Peak volumes caused additional costs

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SLIDE 22

Outlook for 2020

24.4.2020 22

Adjusted EBIT

  • n a constant currency basis

is estimated to increase from the 2019 level

Oriola’s business outlook for 2020 is based on external market forecasts, agreements with pharmaceutical companies and pharmacies, and management assessments.

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SLIDE 23

Thank you! Our next events:

17/7/2020 Half year financial report 1-6/2020 23/10/2020 Interim Report 1-9/2020 IR contact: Katja Graff, Treasury & IR Manager, +358 10 429 013 katja.graff@oriola.com