Oriola (OKDBV) Q3 2024 earnings summary

Executive summary

• Net sales rose 19% year-over-year in Q3 2024 to EUR 424 million, with 5% organic growth driven by the Distribution segment and a customer shift from consignment to inventory stock.

• Adjusted EBIT increased 25% to EUR 5.5 million, supported by sales growth and lower freight costs; profit for the period was EUR -1.9 million.

• Management remains committed to the refined strategy and long-term goals, with ERP project progressing as planned despite recent team changes.

• E-commerce sales at Kronans Apotek grew double digits, strengthening Swedish market presence, while brick-and-mortar sales were flat.

• The sale of Svensk dos AB was blocked by Swedish authorities; appeal process is ongoing and exit from the business is planned regardless of outcome.

Financial highlights

• Q3 2024 net sales up 19% to EUR 424 million; adjusted EBIT up 25% to EUR 5.5 million; Q3 adjusted EBIT margin 1.3%.

• Distribution segment Q3 net sales up 23% to EUR 351 million; adjusted EBIT up 46% to EUR 5 million.

• Wholesale segment Q3 net sales flat at EUR 74 million; adjusted EBIT EUR 2.3 million, impacted by lower Swedish volumes.

• Net cash flow from operating activities for Jan–Sep was EUR 1.2 million; cash and cash equivalents at period end EUR 83.9 million.

• Net interest-bearing debt decreased to EUR -7.0 million at the end of Q3 2024.

Outlook and guidance

• Adjusted EBIT (excluding Swedish dose dispensing) for 2024 expected to increase from 2023 (EUR 19.5 million); guidance maintained.

• Pharmaceutical distribution market expected to continue growing in 2024, though weak consumer confidence may impact wholesale.

• Q4 expected to benefit from normalized cost inflation and strong seasonal performance, though December has fewer working days.