Oriola-KD Corporation Stock Exchange Release 19 July 2016 at 8.30 a.m.
Oriola-KD Corporation's Interim Report for 1 January - 30 June 2016
Financial performance April-June 2016
- Invoicing increased by 7.8 per cent to EUR 887.3 (823.1) million
- Net sales increased by 0.8 per cent to EUR 420.2 (417.1) million
- Adjusted EBITDA increased by 3.5 per cent to EUR 21.3 (20.6) million
- Adjusted operating profit was EUR 14.8 (14.9) million
- Profit for the period totalled EUR 9.7 (10.9) million and earnings per share were EUR 0.05 (0.06)
Financial performance January-June 2016
- Invoicing increased by 6.5 per cent to EUR 1,721.7 (1,616.5) million
- Net sales decreased by 0.8 per cent to EUR 821.5 (828.4) million
- Adjusted EBITDA increased by 5.4 per cent to EUR 41.4 (39.3) million
- Adjusted operating profit was EUR 28.7 (28.1) million
- Profit for the period totalled EUR 19.8 (18.3) million and earnings per share were EUR 0.11 (0.11)
Outlook for 2016
Oriola-KD estimates its full-year net sales to remain at the 2015 level on constant currency basis. Adjusted operating profit is estimated to remain at 2015 level or to increase, on a constant currency basis. Full-year net sales in 2015 were EUR 1,626.3 million and adjusted operating profit was EUR 60.8 million.
President and CEO Eero Hautaniemi:
The first half of 2016 went in line with our expectations. In Consumer business our growth continued to be slightly below market, but the sales mix developed favorably supporting the profitability. In Q2 we succeeded well with the sales of seasonal products. In Services business volumes continued to be at good level and we completed the closure of Oulu distribution center as planned. Healthcare business was somewhat burdened with start-up costs related to hospital and veterinarian businesses but dose dispensing business performed according to plans. July 18 announced acquisition of Pharmaservice Oy in Finland makes Oriola-KD a leading dose dispensing company in our main markets Sweden and Finland and is an important step in our way to build the third business area, Healthcare.
Impact of new ESMA guidelines
New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (APMs) are effective for the financial year 2016. Oriola-KD presents APMs to reflect the underlying business performance and to enhance comparability between financial periods. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. As of Q1 2016, Oriola-KD relabels the previously referenced "excluding non-recurring items" with "adjusted". Reporting segments' operating profit is reported excluding adjustment items. In addition Oriola-KD uses "invoicing" as the measure to describe the business volume.The reconciliation of the alternative performance measurements to performance measurments defined by IFRS are presented at the end of this interim report.
| Key figures | 2016 | 2015 | Change | 2016 | 2015 | Change | 2015 |
| EUR million | 4-6 | 4-6 1) | % | 1-6 | 1-6 1) | % | 1-12 |
| Invoicing | 887.3 | 823.1 | 7.8 | 1,721.7 | 1,616.5 | 6.5 | 3,262.2 |
| Net sales | 420.2 | 417.1 | 0.8 | 821.5 | 828.4 | -0.8 | 1,626.3 |
| Adjusted EBITDA | 21.3 | 20.6 | 3.5 | 41.4 | 39.3 | 5.4 | 83.4 |
| Adjusted EBITDA % | 5.1 | 4.9 | 5.0 | 4.7 | 5.1 | ||
| Adjusted operating profit 2) | 14.8 | 14.9 | -1.1 | 28.7 | 28.1 | 2.3 | 60.8 |
| Operating profit | 14.0 | 15.2 | -7.8 | 27.9 | 26.9 | 3.8 | 62.6 |
| Adjusted operating profit % | 3.5 | 3.6 | 3.5 | 3.4 | 3.7 | ||
| Operating profit % | 3.3 | 3.6 | 3.4 | 3.2 | 3.8 | ||
| Profit for the period | 9.7 | 10.9 | -10.8 | 19.8 | 18.3 | 7.9 | 44.5 |
| Earnings per share, EUR | 0.05 | 0.06 | -14.3 | 0.11 | 0.11 | 1.2 | 0.25 |
| Net cash flow from operating activities | 21.7 | 25.6 | -5.1 | 38.9 | 85.6 | ||
| Gross investments, EUR million | 35.5 | 8.1 | 20.4 | ||||
| Total assets | 934.1 | 911.9 | 946.9 | ||||
| Net interest-bearing debt | 66.2 | 42.0 | 6.6 | ||||
| Gearing, % | 35.8 | 25.9 | 3.4 | ||||
| Net debt / 12-month EBITDA | 0.8 | 0.5 | 0.1 | ||||
| Equity per share, EUR | 1.02 | 0.90 | 1.07 | ||||
| Equity ratio, % | 20.6 | 18.4 | 21.1 | ||||
| Return on equity (ROE), % | 21.9 | 28.5 | 29.1 | ||||
| Return on capital employed (ROCE), % | 17.6 | 18.7 | 19.9 | ||||
| Average number of shares, 1000 pcs 3) | 181,389 | 169,984 | 177,502 | ||||
| Average number of personnel | 2,419 | 2,299 | 2,327 | ||||
| Number of personnel at the end of the period | 2,465 | 2,312 | 2,353 | ||||
| 1) Equity-related key figures restated as a result of correction of an error relating to previous financial periods. Correction was made in 2015 Financial Statements. 2) Adjustment items are specified in table "Adjusting items included in Operating Profit" 3) Treasury shares held by the company not included | |||||||
Disclosure procedure
This stock exchange release is a summary of Oriola-KD Corporation's Interim Report January-June 2016. The complete report is attached to this release in pdf format and is also available on Oriola-KD's website at www.oriola-kd.com/investors.
Next interim report
Oriola-KD Corporation will publish its results for the third quarter of 2016 on 20 October 2016.Espoo, 18 July 2016
Board of Directors of Oriola-KD Corporation
Further information:
Eero Hautaniemi
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola.com
Sari Aitokallio
CFO
tel. +358 (0)10 429 2112
e-mail: sari.aitokallio@oriola.com
Distribution:
NASDAQ OMX Helsinki Ltd
Key media
Released by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
02200 Espoo
www.oriola-kd.com
HUG#2029164
