Oriola, a reputable pharmaceutical wholesaler, reported an increase in profit margins for the final quarter of the past year, an improvement that was anticipated but still fell slightly short of the projected figures. Despite this, the company’s turnover outperformed expectations. Furthermore, the company’s shareholders will be pleased to note that the dividend is set to rise by a margin that exceeds initial predictions.
Oriola, a leading pharmaceutical wholesaler, recently unveiled its financial performance for the last quarter of the year, spanning from October to December. The results were anticipated to be superior to those of the same period in the preceding year, and they indeed surpassed the previous figures.
The company’s adjusted operating profit for the final quarter was EUR 5.4 million. This expresses a significant increase from the profit of EUR 2.9 million reported during the same period the previous year.
The Factsetin analysis service, which consolidated the expectations of four financial analysts, projected Oriola’s adjusted operating profit for the last quarter to be around EUR 6.0 million, with a forecast range of EUR 5.5–6.3 million. However, the actual profit margin fell slightly short of these projections.
Oriola’s financial turnover for the October–December period was recorded at EUR 386.6 million, marking an increase from the EUR 380.0 million reported for the same period the year before. Analysts had predicted a turnover of approximately EUR 374.0 million, with a forecast range of EUR 371.0–378.0 million. Thus, the company’s actual turnover exceeded the expectations of financial analysts.
According to Katarina Gabrielson, CEO of Oriola, the turnover for the last quarter, calculated at comparable exchange rates, rose by 4.8 percent to reach EUR 398.2 million. The growth was primarily driven by an expansion in the distribution business, particularly in Sweden.
Gabrielson noted that the increase in the operating profit from the previous year was a result of robust business growth in distribution, reduced operational costs, and improved efficiency in the company’s operations.
The earnings per share for the period were -0.02 euros, a slight improvement from the -0.04 euros reported for the same period the previous year. The forecast for this figure now stands at 0.02 euros.
The board of the company has proposed a dividend of EUR 0.07 per share for the concluded fiscal year, which is an increase from the EUR 0.06 per share paid out in the previous fiscal year. This proposal surpasses the forecasted dividend of EUR 0.05, with an estimated range of EUR 0.04–0.06 per share. Thus, the proposed dividend also exceeded the expectations of financial analysts.
Oriola’s guidance for the ongoing financial year suggests that the pharmaceutical distribution market is expected to continue growing in 2024.
However, the company has also expressed caution, noting that if consumer confidence remains weak, it may adversely affect the growth of the health products wholesale market. Oriola also acknowledges that the recent general inflation in the operating environment and the associated cost pressures may negatively impact the company’s profitability.
Oriola’s adjusted operating profit for 2024, excluding the share of the Swedish dose distribution business, is estimated to increase compared to the adjusted operating profit for 2023. In 2023, the company reported an adjusted operating profit of 19.5 million euros.
