Oriola (OKDBV) Q2 2024 earnings summary

Executive summary

• Net sales grew 13% year-over-year to EUR 440 million in Q2 2024, with both Distribution and Wholesale segments contributing to growth.

• Adjusted EBIT increased 53% to EUR 5.1 million, supported by sales growth, lower operating expenses, and reduced freight costs.

• The company is advancing its refined strategy and ERP/warehouse management investment, now in the build phase.

• Kronans Apotek, the joint venture, saw steady e-commerce growth, new leadership, and ongoing integration and profitability improvement measures.

• The sale of Svensk dos AB was blocked by Swedish authorities; appeal is ongoing with outcome expected in early Q4.

Financial highlights

• Q2 invoicing increased by 5–6% to EUR 952–954 million; net sales up 13% to EUR 440 million year-over-year.

• Adjusted EBIT rose from EUR 3.4 million to EUR 5.1 million; excluding Swedish dose dispensing, adjusted EBIT was EUR 4.9 million.

• Profit for Q2 was EUR 2 million, with EPS at EUR 0.01; H1 profit was EUR -0.3 million.

• Net cash flow from operating activities in Q2 was EUR 17.8 million; cash position at period end was EUR 86–86.2 million.

• Net interest-bearing debt reduced to EUR -12.5 million, with gearing at -8.1%.

Outlook and guidance

• Guidance for 2024 remains unchanged: adjusted EBIT (excluding Swedish dose dispensing) expected to increase from 2023’s EUR 19.5 million.

• Pharmaceutical distribution market expected to continue growing, but weak consumer confidence and inflation may impact wholesale and profitability.