Oriola (OKDBV) Q1 2026 earnings summary

Executive summary

• Net sales excluding Swedish dose dispensing increased by 10.7% to EUR 49.8 million, with adjusted EBITDA at EUR 7.7 million and a 15.4% margin.

• Strong demand for distribution services continued, supported by existing and new customers, with stable supply chain operations.

• Strategic investments in automation, ERP, and new distribution centers in Finland and Sweden are progressing as planned, including a EUR 5 million automation investment at Enköping.

• Kronans Apotek joint venture underperformed, prompting corrective actions focused on revenue and cost efficiency.

• New financial targets and dividend policy announced, aiming for at least 5% annual net sales growth and a cost-to-net sales ratio below 75%.

Financial highlights

• Adjusted EBITDA margin reached 15.4% in Q1, up from 14.8% year-over-year.

• Free cash flow was negative at EUR -20.9 million, mainly due to a negative change in working capital.

• Net profit for the period was EUR -2 million, impacted by a EUR -2.3 million share of result from the joint venture.

• Investments totaled EUR 5.4 million, primarily for land acquisition in Järvenpää and automation.

• Equity ratio was 11.8%-13%, and gearing ranged from -62.9% to -81%, both impacted by negative cash flow and JV results.

Outlook and guidance

• Adjusted EBITDA is expected to increase from the previous year (EUR 35.1 million in 2024), with further growth anticipated in 2026, driven by market expansion and strategy execution.

• Pharmaceutical distribution market is expected to grow, supported by high-value products and advanced logistics.

• Ongoing geopolitical uncertainty and pharmaceutical availability issues are expected to persist.

• Dividend policy updated to exclude joint venture results from payout calculations.