Oriola (OKDBV) Q4 2024 earnings summary

Executive summary

• Net sales reached EUR 1.7 billion, with organic growth of 3% and adjusted EBIT up 30% to EUR 21.7 million year-over-year.

• Strategy execution and a new operating model enhanced customer-centricity and profitability in both distribution and wholesale segments.

• The period ended with a EUR -20.1 million loss, mainly due to a EUR 16.3 million goodwill impairment in the Kronans Apotek JV.

• Board proposed a EUR 0.07 dividend for 2024, supported by strong cash flow and working capital.

• ERP project and management changes were implemented to accelerate commercial focus and integration.

Financial highlights

• Distribution segment net sales grew 14.8% to EUR 1,364.7 million, with adjusted EBIT up 30.6% to EUR 19.0 million.

• Wholesale segment net sales increased 3.3% to EUR 315.6 million, with adjusted EBIT up 6.7% to EUR 9.5 million.

• Q4 net sales were EUR 441 million, up 14% year-over-year; Q4 adjusted EBIT was EUR 6.4 million, up 19%.

• Operating cash flow was EUR 38.7 million; ending cash position at EUR 113.5 million.

• Net interest-bearing debt was EUR -37.4 million; gearing at -28%, equity ratio at 15%.

Outlook and guidance

• Adjusted EBITDA is expected to increase in 2025, with guidance shifting from adjusted EBIT to adjusted EBITDA for better comparability.

• Pharmaceutical distribution market is forecast to grow, but weak consumer confidence and availability issues for certain pharmaceuticals are expected to continue.

• New customers onboarded in Q1 2025 will impact both Sweden and Finland, with effects visible in results over the year.