Oriola-KD financial statement 1 July - 31 December 2006
Oriola-KD Corporation Stock Exchange Release 1 February 2007 at 8.35 am
Oriola-KD Corporation listed on the Helsinki Exchanges on 3 July 2006.
Oriola-KD Corporation was entered in the Trade Register on 1 July 2006 as a result of the demerger of Orion Corporation. Trading in Class A and Class B shares in Oriola-KD Corporation commenced on the main list of the Helsinki Exchanges on 3 July 2006. The General Meeting of Shareholders of the demerged and dissolved Orion Corporation held in Helsinki on 16 October 2006 confirmed the final account of the company and discharged the Board of Directors and the President and CEO of the company from liability for the period of 1 January - 1 July 2006. The assets and liabilities of the demerged company were transferred to the two companies that arose from the demerger on 1 July 2006, the new Orion Corporation and Oriola-KD Corporation.
This financial statement bulletin presents the figures of the Oriola-KD Group (hereinafter Oriola-KD) for July-December 2006, which have been prepared in accordance with the recognition and valuation principles of the IFRS standards and have been audited. Oriola-KD Corporation has on 1 February 2007 published a pro forma review for January-December 2006 providing information supplemental to this bulletin. The figures for July-December in the bulletin differ from the pro forma figures due to the exchange rates used as a result of differing financial years.
Key figures
-Oriola-KD's invoicing in the period under review was EUR 1,166.0 million and net sales were EUR 662.7 million.
-Operating profit excluding one-off items was EUR 12.8 million.
-Operating profit including one-off items was EUR 12.2 million.
-Cash flow from operations was EUR 46.1 million.
-Return on capital employed was 12.1 per cent.
-Earnings per share were EUR 0.07.
-The Board proposes to the AGM that a dividend of EUR 0.06 per share be paid for 2006.
President and CEO Eero Hautaniemi: "Demerger and subsequent operation as an independent listed company have provided Oriola-KD with enhanced opportunities to focus on the development of its core businesses. The cost efficiency programme implemented in 2006 and our revised business structure have allowed us to introduce greater efficiency to our operations and improve our competitiveness. These measures eroded operating profit for 2006. In 2007, we will continue to pursue greater efficiency and active development of our core businesses. More efficient operations together with our strong cash flow, balance sheet and market position further combined with favourable long-term fundamentals in the healthcare market enable business development in line with strategy."
Future outlook
Oriola-KD's outlook for 2007 is based on external market forecasts, agreements with principals, cumulative orders and management's estimates.
Long term fundamentals and growth prospects are deemed favourable. Oriola-KD estimates that the pharmaceutical market in Finland and Sweden will grow by about 3-5 percent annually over the next few years, which is in line with the longer-term average growth rate of these markets.
The overall objective of the cost efficiency measures that were implemented in 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 expenses relating to the cost efficiency measures occurred in 2006.
Oriola-KD estimates that growth in the market for healthcare and dental equipment and supplies will outpace that of the pharmaceutical market in Finland and in Sweden. Oriola-KD projects growth outpacing that of the market in sales of healthcare equipment and supplies and in keeping with the market in dental trade sales. Invoicing in the healthcare logistics services in Sweden is estimated to fall from 2006 levels.
Oriola-KD's invoicing in 2007 is projected to exceed comparable invoicing in the previous year primarily as a result of new agreements with principals concluded in 2006 and market growth. Operating profit excluding one-off items in 2007 is projected to exceed comparable operating profit in the previous year primarily as a result of higher invoicing and cost efficiency measures implemented in 2006.
Espoo, 31 January 2007
Board of Directors of Oriola-KD Corporation
Oriola-KD Corporation
Eero Hautaniemi President and CEO
Kimmo Virtanen CFO
Further information:
Eero Hautaniemi
President and CEO
Tel. +358 10 429 2109
Email: eero.hautaniemi@oriola-kd.com
Kimmo Virtanen
CFO
Tel. +358 10 429 2069
Email: kimmo.virtanen@oriola-kd.com
Pellervo Hämäläinen
Vice President, Communications and IR
Tel. +358 10 429 2497
Email: pellervo.hamalainen@oriola-kd.com
Distribution:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola-kd.com
The full report including tables can be downloaded from the following link:
Oriola-KD financial statement 1 July - 31 December 2006