Oriola-KD Corporation stock exchange release 1 November 2006 at 8.30am
Oriola-KD's pro forma review 1 January - 30 September 2006
Oriola-KD Corporation was listed on the Helsinki Exchanges on 3 July 2006. This pro forma review presents Oriola-KD Corporation's (Oriola-KD) figures for January-September 2006 according to the businesses and corporate structure following the demerger of Orion Corporation. The comparison figures from 2005 are based on published figures for Orion Corporation's Wholesale and Distribution Division extracted from financial data for Orion Corporation, which have been adapted to correspond to the businesses and structure subsequent to demerger. The figures for Oriola-KD's period under review have been prepared in accordance with the recognition and valuation principles of the IFRS standards and the figures are unaudited. Oriola-KD Corporation published its interim report for July-September on 1 November 2006.
Key figures
* Invoicing in the period was EUR 1,737.1 million (1-9/2005: EUR 1,773.0 million) and net sales were EUR 991.0 million (1-9/2005: EUR 983.8 million). * Operating profit excluding one-off items was EUR 17.1 million (1-9/2005: EUR 19.1 million). * Operating profit including one-off items was EUR 12.1 million (1-9/2005: EUR 19.1 million). * Cash flow from operations was EUR 28.3 million (1-9/2005: EUR 17.8 million). * Return on capital employed (ROCE) was 8.1 per cent (1-9/2005 12.2 per cent). * Earnings per share were EUR 0.06 (1-9/2005: EUR 0.08).
President and CEO Eero Hautaniemi: "Oriola-KD's operating profit for the first three quarters of 2006 was lower than the comparable operating profit in 2005 mainly due to the heavy competitive situation and slow growth of the pharmaceutical market in Finland as well as to the one-off items related to the demerger and the operational rearrangements being implemented in Oriola-KD. Cost efficiency measures at Oriola-KD together with our strong cash flow and balance sheet and further combined with favourable long-term fundamentals in the healthcare market will allow positive development in our future business performance."
Future outlook
Oriola-KD's outlook for 2006 is based on external market forecasts, agreements with principals, cumulative orders and management's estimates.
Finnish pharmaceutical market growth is estimated to be flat in 2006. Swedish pharmaceutical market is estimated to grow by 4-5 per cent in 2006. Long term fundamentals and growth prospects are deemed favourable. Oriola-KD estimates that the longer term pharmaceutical market will grow by about 3-5 per cent in Finland and Sweden over the next few years, which is in line with the average growth rate of these markets.
The overall objective of the cost efficiency measures that were launched in the early part of 2006 is to achieve total savings of some five million euros annually in the Group's operations in Finland and Sweden, with full impact as of 2007. The one-off items of the cost efficiency measures are estimated to be about EUR 3 million and they will occur in 2006.
Oriola-KD estimates that the market for healthcare and dental equipment and supplies will grow by more than 5 per cent in Finland and Sweden in 2006. In sales of healthcare equipment and supplies, Oriola-KD estimates that its growth will outpace that of the market. The dental trade is expected to grow at a rate slower than market growth. Invoicing for the healthcare logistics services in Sweden is estimated to be at the previous year's level.
Oriola-KD's invoicing in 2006 is forecast to be nearly at the level of the previous year's comparable invoicing. Operating profit for 2006 is forecast to be lower than the previous year's comparable operating profit, owing mainly to the tight competitive situation within pharmaceutical distribution and trade and the slow growth in Finland's pharmaceutical market in the early part of the year as well as one-off expenses for the demerger and the reorganisation of functions.
Espoo, 1 November 2006
Oriola-KD Corporation's Board of Directors
Oriola-KD Corporation
Eero Hautaniemi Kimmo Virtanen President and CEO CFO
For additional information, contact: Eero Hautaniemi President and CEO tel. +358 10 429 2109 email: [email protected]
Kimmo Virtanen CFO tel. +358 10 429 2069 email: [email protected]
Pellervo Hämäläinen Vice President, Communications and IR tel. +358 10 429 2497 email: [email protected]
Distribution Helsinki Stock Exchange Principal media Published by: Oriola-KD Corporation Corporate Communications Harmaaparrankuja 1 FI-02200 Espoo www.oriola-kd.com
The full report including tables can be downloaded from the following link:
