Oriola (OKDBV) Q2 2024 earnings summary

Executive summary

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

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

• The company advanced its refined strategy and ERP/warehouse management investments, reaching the end of the design phase.

• Kronans Apotek, the joint venture, saw steady e-commerce growth and new leadership, but contributed a loss in Q2.

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

Financial highlights

• Invoicing increased by 5% to EUR 952 million in Q2; net sales rose by 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 the period was EUR 2 million; EPS was EUR 0.01.

• Net cash flow from operating activities in Q2 was EUR 17.8 million, with a strong cash position of EUR 86 million at period end.

• Interest-bearing net debt decreased to EUR -12.5 million, with gearing at -8.1%.

Outlook and guidance

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

• Assumes continued growth in pharmaceutical distribution market, but notes weak consumer confidence and inflation may impact profitability.