2008-04-25 07:30:00 CEST
2008-04-25 07:34:56 CEST
REGULATED INFORMATION
Oriola-KD Oyj - Quarterly report
Oriola-KD Corporation's interim report for 1 January - 31 March 2008
Oriola-KD Corporation Stock Exchange Release 25 April 2008 at 8.30am
This review presents the financial information for the Oriola-KD
Group (hereinafter Oriola-KD) for the period January-March 2008. The
interim report has been prepared in accordance with IAS 34 and in
keeping with the same accounting principles as the annual financial
statements for 2007. The figures are unaudited.
Key figures 1 January - 31 March 2008
* Invoicing in the review period was EUR 643.6 million (1-3/2007:
EUR 634.9m) and net sales were EUR 318.0 million (1-3/2007: EUR
355.8m).
* EBIT was EUR 8.5 million (1-3/2007: EUR 7.8m).
* Net profit was EUR 6.9 million (1-3/2007: EUR 6.1m).
* Earnings per share were EUR 0.05 (1-3/2007: EUR 0.04).
* Return on capital employed was 17.0 percent (1-3/2007: 16.4%).
President and CEO Eero Hautaniemi: "Oriola-KD's financial
performance in the first quarter of the year improved in line with
expectations. Pursuant to an important expansion agreement signed in
March, we acquired in April 75 percent of Moscow-based pharmacy
company Vitim and pharmaceutical wholesaler Moron. The acquisition
offers Oriola-KD a unique opportunity for investment in the rapidly
growing Russian market. Expansion into the integrated pharmaceutical
wholesale and retail market in Russia further solidifies our standing
in the event of the possible deregulation of the Swedish pharmacy
market."
Financial performance
Oriola-KD's invoicing in January-March 2008 was EUR 643.6 million
(EUR 634.9 million) and net sales were EUR 318.0 million (EUR 355.8
million).
EBIT in January-March 2008 came to EUR 8.5 million (EUR 7.8 million)
and profit after financial items to EUR 9.1 million (EUR 8.1
million). No non-recurring items were booked in the period under
review.
Oriola-KD had net financial income of EUR 0.6 million (EUR 0.3
million) in the period under review.
Taxes amounted to EUR 2.1 million (EUR 2.0 million). Taxes
corresponding to the result for the period under review are accounted
as taxes.
Net profit in January-March 2008 was EUR 6.9 million (EUR 6.1
million).
Earnings per share in the review period were EUR 0.05 (EUR 0.04).
Return on capital employed was 17.0 percent (16.4 percent) and return
on equity 13.8 percent (12.8 percent).
Balance sheet, financing and cash flow
Oriola-KD's total assets at 31 March 2008 stood at EUR 639.1 million
(EUR 583.2 million). Cash assets at 31 March 2008 stood at EUR 98.5
million (EUR 66.7 million) and equity at EUR 199.8 million (EUR 187.1
million). Oriola-KD's equity ratio was 32.3 percent (32.9 percent).
At the end of the review period, interest-bearing net debt amounted
to EUR -79.5 million (EUR -50.9 million) and the gearing ratio was
-39.8 percent (-27.2 percent). The interest-bearing debt of EUR 19.1
million (EUR 15.8m) at the end of March consisted mainly of
pharmacies' advance payments in Finland. Oriola-KD has credit
facilities of EUR 25 million with banks and a commercial paper
programme of EUR 100 million which remained untapped at the end of
the period under review.
Cash flow from operations in January-March 2008 was EUR -11.2 million
(EUR -20.7 million), of which changes in working capital accounted
for EUR -20.4 million (EUR -28.8 million). Cash flow from investments
was EUR 0.4 million (EUR -0.9 million). Cash flow after investments
in the period was EUR -10.8 million (EUR -21.6 million).
Investments
Investments in the period under review amounted to EUR 0.9 million
(EUR 1.8 million) and consisted mainly of maintenance and PPE
investments.
Personnel
At the end of the period under review, Oriola-KD had a payroll of
1288 employees (1494), 54 percent of whom worked in Finland (55
percent), 29 percent in Sweden (27 percent) and a total of 17 percent
in the Baltic countries and Denmark (18 percent).
Business segments
Oriola-KD has two business segments: the Pharmaceutical Trade
business segment and the Healthcare Trade business segment, which
includes the share of profits from the associated Dental Trade
company.
Pharmaceutical Trade business segment
The Pharmaceutical Trade business segment's invoicing in
January-March 2008 was EUR 592.1 million (EUR 563.2 million) and net
sales were EUR 277.3 million (EUR 291.3 million). EBIT was EUR 5.9
million (EUR 5.1 million). The number of employees within the
Pharmaceutical Trade business segment at 31 March 2008 was 874 (910).
Finland
The Pharmaceutical Trade business segment's invoicing in Finland in
January-March 2008 was EUR 256.7 million (EUR 246.9 million) and net
sales were EUR 127.8 million (EUR 121.0 million).
The Finnish pharmaceutical market grew by 6.3 percent (4.8%) in the
review period. Oriola-KD held a 48.1 percent (47.6%) share of the
pharmaceutical distribution market in Finland in January-March 2008.
Oriola-KD took over the distribution of Wyeth products at the
beginning of 2008. Wyeth's share of the Finnish pharmaceutical market
is roughly two percent (source: IMS Health). Oriola-KD retained all
its major pharmaceutical principals in Finland during the period
under review.
According to the situation at the end of the review period,
Oriola-KD's share of the pharmaceutical distribution market in
Finland is estimated at some 47 percent in 2008.
Sweden
The Pharmaceutical Trade business segment's invoicing in Sweden in
January-March 2008 was EUR 324.4 million (EUR 306.6 million) and net
sales were EUR 139.9 million (EUR 161.7 million).
The Swedish pharmaceutical market grew by 5.5 percent (6.8%) in the
review period. Oriola-KD held a 43.3 percent (41.5%) share of the
pharmaceutical distribution market in Sweden in January-March 2008
(source: IMS Health).
Oriola-KD took over the distribution of McNeil products in Sweden at
the beginning of 2008. McNeil's share of the Swedish pharmaceutical
market is roughly two percent (source: IMS Health). Oriola-KD
retained all its major pharmaceutical principals in Sweden during the
period under review.
According to the situation at the end of the review period,
Oriola-KD's share of the pharmaceutical distribution market in Sweden
is estimated at some 43 percent in 2008.
A government-appointed advisor recommended on 8 January 2008 that the
Swedish pharmacy monopoly be dismantled by the year 2009 and that a
resolution to this effect be made during 2008. Oriola-KD continued to
prepare for eventual changes in the pharmacy market.
Other countries
The Pharmaceutical Trade business segment's invoicing in the Baltics
in January-March 2008 was EUR 10.9 million (EUR 9.7 million) and net
sales were EUR 9.7 million (EUR 8.5 million).
Strategic expansion to the Russian market
Oriola-KD Corporation signed in March 2008 an agreement on the
acquisition of a 75-percent holding in the Finnish company Foreti Oy,
which in turn owns a Moscow-based pharmacy retail company (Vitim &
Co) and pharmaceutical wholesaler (Moron Ltd). The acquisition of
Vitim and Moron represents an important strategic investment for
Oriola-KD in the rapidly growing Russian pharmaceutical market. The
deal was closed on 21 April 2008.
The acquisition consideration is an estimated EUR 70-90 million based
on the 2008 financial performance of the acquired companies. In
addition, Oriola-KD agreed to buy out the remaining 25-percent
holding in 2010 for a consideration based on the companies'
performance in 2009.
Vitim operates pharmacies in Moscow and the Moscow region under the
well-recognised Stary Lekar brand. Its five-percent share of the
market made it the third largest chain of pharmacies in Moscow in
2007. Vitim currently operates some 140 pharmacies and employs 1600
persons. Net sales were EUR 76 million in 2007 (EUR 63 million in
2006) with EBIT of an estimated at EUR -3 million in 2007 (EUR 0
million in 2006). In 2008, Vitim's net sales are expected to grow
substantially while profitability will still be affected by the
continuing establishment of new pharmacies.
Moron engages in pharmaceutical wholesale in Russia and its share of
the Russian pharmaceutical wholesale market is some five percent.
Moron is well established especially in Moscow and its environs. With
1800 employees, the company's net sales in 2007 were EUR 296 million
(EUR 295 million in 2006) while EBIT after accounting adjustments is
estimated to be slightly negative in 2007 (EUR 6 million in 2006).
Substantial year-on-year growth is expected in Moron's net sales and
EBIT in 2008.
The interest-bearing net debt of Vitim and Moron was some EUR 15
million at the time of signing. Oriola-KD aims to make further
disclosures on the companies' financial standing in the second
quarter of 2008.
Oriola-KD is committed to invest considerably in the companies and
offer its logistical know-how to strengthen the companies'
operations, further develop their business and competitiveness. The
founders will continue in their leading management role in Vitim and
Moron and retain a 25-percent holding in the Finnish holding company
Foreti Oy, which will own in full the operating companies in Russia.
Oriola-KD estimates the Russian pharmaceutical market will grow by
nearly 20 percent annually in the next few years.
Healthcare Trade business segment
The Healthcare Trade business segment's invoicing in January-March
2008 was EUR 51.6 million (EUR 71.8 million) and net sales were EUR
40.6 million (EUR 64.5 million). Invoicing in the Healthcare and
Dental Trade business segment was reduced by the merger of the Dental
Trade business with and into Lifco Dental and by the sale of the home
distribution business in Sweden in 2007. EBIT excluding one-off items
was EUR 3.5 million (EUR 3.7 million). The Healthcare Trade business
segment had a payroll of 414 (584) employees at the end of the period
under review.
Finland
The Healthcare Trade business segment's invoicing in Finland in
January-March 2008 was EUR 23.0 million (EUR 20.5 million) and net
sales were EUR 21.6 million (EUR 19.0 million).
The product range was augmented with Carl Zeiss Meditec's opthalmic
surgery products in early 2008. Sysmex haematology products
transferred from Oriola-KD at the beginning of 2008 and Zimmer
orthopaedic products at the end of the review period.
Sweden
The Healthcare Trade business segment's invoicing in Sweden in
January--March 2008 was EUR 25.4 million (EUR 35.6 million) and net
sales were EUR 15.8 million (EUR 30.2 million).
Other countries
The Healthcare Trade business segment's invoicing in the Baltics and
Denmark in January-March 2008 was EUR 3.2 million (EUR 2.5 million)
and net sales were EUR 3.2 million (EUR 2.5 million).
Dental Trade
Dental Trade contributed EUR 0.0 million (EUR 13.2 million) to the
segment's invoicing, EUR 0.0 million (EUR 12.9 million) to its net
sales and EUR 0.6 million (EUR 1.1 million) to the segment's EBIT in
January-March 2008. At 31 March 2007, personnel numbered 114. The
merger of the Dental Trade business with and into Lifco Dental was
finalised on 2 January 2008 with the merger of the businesses in
Estonia, Latvia and Lithuania. Oriola-KD holds a 30-percent share of
the merged Dental business while Lifco has a 70-percent holding.
Related parties
Related parties in the Oriola-KD Group are deemed to comprise parent
company Oriola-KD Corporation, subsidiaries and associated companies,
the members of the Board and the President and CEO of Oriola-KD
Corporation, other members of the Group Management Team of the
Oriola-KD Group, the immediate family of the aforementioned persons,
the companies controlled by the aforementioned persons, and the
Oriola Pension Foundation. The Group has no significant business
transactions with related parties except for pension expenses arising
from defined benefit plans with the Oriola Pension Foundation. The
notes to the financial statements of Oriola-KD Corporation provide
additional information on intra-Group liabilities and sureties given
on behalf of Group companies. Oriola-KD Corporation has given no
significant sureties on behalf of Group companies.
Oriola-KD Corporation share
Trading volume of Oriola-KD Corporation's Class A and B shares in
January-March 2008:
Trading January-March 2008 January-March 2007
Class A Class B Class A Class B
Trading volume, million 1.1 9.4 3.7 22.8
Trading volume, EUR million 3.0 26.8 12.1 74.7
High, EUR 2.96 3.00 3.57 3.60
Low, EUR 2.50 2.60 2.84 2.87
Close at 31 March, EUR 2.92 2.98 3.21 3.26
The traded volume of Oriola-KD Corporation shares in the review
period excluding treasury shares equalled 7.4 percent (18.8 percent)
of total outstanding shares. The traded volume of Class A shares in
the period under review amounted to 2.2 percent (6.8 percent) of
average outstanding stock and that of Class B shares excluding
treasury shares to 10.4 percent (26.3 percent).
Oriola-KD Corporation's market capitalisation at 31 March 2008
excluding treasury shares was EUR 418.4 million (EUR 457.8 million).
Under Article 3 of the Articles of Association, a shareholder may
demand conversion of Class A shares into Class B shares. Between
January and March 2008, a total of 466,598 Class A shares (2,072,100)
were converted into Class B shares. At the end of the review period,
the company had 50,778,807 Class A shares (54,222,540) and 91,129,021
Class B shares (87,035,288).
The resolutions of Oriola-KD Corporation's Board of Directors taken
on 20 February 2008 pursuant to the authorisation granted by the
Annual General Meeting on 13 March 2007, concerning a bonus issue to
the company and a targeted bonus issue within the share incentive
scheme, were executed during the period under review. Oriola-KD
Corporation issued to itself 650,000 new Class B shares in the bonus
issue. In addition, the Board resolved on a targeted bonus issue in
which 156,048 Class B shares held as treasury shares were assigned to
the company's President and CEO and other members of Oriola-KD
Corporation's Group Management Team. The share issues were executed
and registered in the period under review. In the context of the
targeted bonus issue, the company on 27 March 2008 transferred
156,048 Class B shares into the book-entry accounts of persons
covered under the incentive scheme for management.
Subsequent to the bonus issues, the company holds 493,952 treasury
shares, all of which are Class B shares. These account for 0.35
percent of the company's outstanding stock and 0.04 percent of the
votes in the company.
Resolutions passed by the Annual General Meeting
The Annual General Meeting of Oriola-KD Corporation held on 17 March
2008 adopted the financial statements and discharged the President
and CEO and members of the Board of Directors from liability for the
financial year ending 31 December 2007.
The Meeting resolved that a dividend of EUR 0.08 per share be paid on
the basis of the balance sheet adopted for the financial year ending
31 December 2007. The dividend is paid to those who at the record
date of 20 March 2008 are entered as a Company shareholder in the
Company's shareholder register kept by the Finnish Central Securities
Depository Ltd. The date of payment of dividend is 2 April 2008
The AGM confirmed that the Board would continue to comprise seven (7)
members. Harry Brade, Pauli Kulvik, Outi Raitasuo, Antti Remes, Olli
Riikkala, Jaakko Uotila and Mika Vidgrén were re-elected to the
Board. Olli Riikkala continues as Chairman of the Board. The
remuneration to the Chairman of the Board was set at EUR 44,000 for
the term of office, to the Vice Chairman at EUR 27,500 and to other
members of the Board at EUR 22,000. The Chairman of the Board
receives EUR 800 and other Board members EUR 400 in attendance fee
for each meeting. Attendance fees are correspondingly paid to members
of the Board or the Company's Committees. The Chairman of the Board
has a company-paid phone. The travel expenses of all members of the
Board of Directors are reimbursed in accordance with the Company's
travel regulations.
The auditor for the Company elected by the AGM is corporation of
authorised public accountants PricewaterhouseCoopers Oy with APA
Heikki Lassila as principal auditor. APA Kaj Wasenius was elected
deputy auditor. The auditors are reimbursed according to invoice.
The AGM resolved that the Board, pursuant to authorisation, may
decide on acquiring a maximum of fourteen million (14,000,000) of
the Company's own Class B shares, equivalent to ca. 9.9 percent of
the Company's entire outstanding stock. The authorisation may only be
exercised in a manner that puts the amount of shares held by the
Company and its subsidiary entities at any given time at no more than
one tenth (1/10) of the Company's entire outstanding stock. The
treasury shares will be acquired in accordance with the decision
taken by the Board in a proportion other than that of the shares held
by the shareholders using funds belonging to the Company's
unrestricted shareholders' equity at the market price of Class B
shares on OMX Nordic Exchange (Helsinki) at the time of acquisition.
The shares will be paid for in accordance with the rules and
regulations of OMX Nordic Exchange (Helsinki) and the Finnish Central
Securities Depository (APK). The Board of Directors shall resolve
upon the method of acquisition. Among other means, derivatives may be
utilised in acquiring the shares. Acquisition of the shares reduces
the company's distributable unrestricted equity. Shares may be
acquired to develop the Company's capital structure, to execute
corporate acquisitions or other arrangements, to finance investments,
for use as part of the Company's incentive schemes or for being
otherwise relinquished, held or cancelled. The Board shall decide on
all other matters relating to the acquisition of the Class B shares.
The authorisation to acquire shall remain in force for a period not
to exceed eighteen (18) months from the resolution passed by the
Annual General Meeting. The authorisation revokes the authorisation
granted to the Board by the Annual General Meeting on 13 March 2007
to decide on acquiring the Company's own Class B shares.
The AGM authorised the Board to decide on a rights issue in one or
more issues. The authorisation comprises the right to issue new Class
B shares or assign Class B shares held by the Company. All told, the
authorisation concerns a maximum of twenty-eight million (28,000,000)
Class B shares, equivalent to ca. 19.8% of the Company's entire
outstanding stock. The authorisation granted to the Board includes
the right to disapply shareholders' right of pre-emption with a
directed issue, provided that the Company has an important financial
reason for this. Subject to the above restrictions, the authorisation
may be used i.a. in the payment of consideration when financing and
executing corporate acquisitions or other arrangements and
investments, to expand the Company's ownership base, to develop
capital structure, to secure the commitment of employees or in
incentive schemes. Pursuant to the authorisation, Class B shares held
by the Company as treasury shares may also be sold in public trading
organised by OMX Nordic Exchange (Helsinki). The authorisation
furthermore entitles the Board to decide on the terms of the share
issue in the manners provided in the Companies Act, including the
right to decide whether the issue price is recognised in part or in
full in the reserve for invested unrestricted equity or in share
capital. The authorisation remains in force for eighteen (18) months
from the decision taken by the Annual General Meeting and revokes the
share issue authorisations granted to the Board earlier, with the
exception of the authorisation granted to the Board by the Annual
General Meeting on 13 March 2007, pursuant to which the Board may
decide on a directed bonus issue of no more than 650,000 shares to
create a share incentive scheme for management.
At the organisation meeting held immediately following the AGM, the
Board resolved to elect Antti Remes to continue serving as Vice
Chairman of the Board. The compositions of the Audit and Compensation
Committees were confirmed as follows:
Audit Committee:
Antti Remes, Chairman
Harry Brade
Outi Raitasuo
Mika Vidgrén
Compensation Committee:
Olli Riikkala, Chairman
Pauli Kulvik
Jaakko Uotila
Risks
The Board of Directors of Oriola-KD has approved the company's risk
management policy in which the operational model, principles,
responsibilities and reporting in risk management have been
determined. The Group's risk management seeks to identify, measure
and manage risks that may threaten the operations of the company and
the achievement of goals set for them. Roles and responsibilities
relating to risk management have been determined in the Group.
Oriola-KD's risks are classified as strategic, operative and
financial. Risk management is a key element of the strategic process,
operative planning and daily decision-making at Oriola-KD.
Oriola-KD has identified the following most significant strategic and
operative risks in its business:
* changes in bargaining position vis-à-vis suppliers and customers
* impacts on business concepts of potential changes in the
structure of the Swedish market
* maintenance of cost-effectiveness and flexibility in costs
* provision of competitive products and services in expanding and
consolidating markets
* expansion-related risks in new markets and businesses
* commitment of key employees
The major financial risks for Oriola-KD involve currency exchange
rates, interest rates, liquidity and credit.
Oriola-KD's exposure to risks relating to new markets and businesses
as well as financial risks increases as the Company expands to the
Russian pharmaceutical retail and wholesale market.
Composition of the Board of Directors of Kronans Droghandel AB
The Annual General Meeting of Kronans Droghandel AB on 26 March 2008
elected Eero Hautaniemi (Chairman), Karin Bernadotte af Wisborg,
Henry Haarla, Thomas Heinonen and Kimmo Virtanen to the Board of
Directors. Claes von Bonsdorff, Pellervo Hämäläinen, Ulf Janzon, Anne
Kariniemi and Teija Silver were elected deputy members.
Events after the period under review
After the period under review, the conversion of a total of 55,954
shares was entered in the Trade Register on 1 April 2008, resulting
in the number of Class A shares standing at 50,722,853 and Class B
shares at 91,184,975.
Statutory employer-employee negotiations relating to pharmaceutical
and veterinary product sales in the Pharmacy and Retail Marketing
business in Finland were conducted a bid to streamline operations and
enhance customer service by discontinuing Oriola Oy's operations in
Seinäjoki and relocating these in Espoo and Oulu in June 2008.
The acquisition relating to Oriola-KD's expansion to Russia was
closed on 21 April 2008. Boards of Directors of Foreti Oy, Vitim and
Moron: Eero Hautaniemi (Chairman), Kimmo Virtanen, Christian
Ramm-Schmidt, Igor Yankov and Oleg Yankov.
CFO Kimmo Virtanen was appointed Executive Vice President and deputy
to the CEO of Oriola-KD Corporation effective 1 May 2008. His sphere
of responsibility comprises Group support functions in addition to
Finance and Treasury. CIO Claes von Bonsdorff; Pellervo Hämäläinen,
VP, Communications and IR; and Teija Silver, VP, Human Resources,
report to Kimmo Virtanen effective 1 May 2008. Attorney at Law Thomas
Heinonen has been appointed Senior Legal Counsel at Oriola-KD
effective 1 June 2008. He reports to Kimmo Virtanen. General Counsel
Henry Haarla will retire on 1 June 2008 but stay on as Senior Legal
Advisor and Secretary to the Board of Oriola-KD until the end of
2008.
Jukka Niemi has been appointed Vice President, Pharmaceutical
Distribution Finland and Pharmacy and Retail Marketing effective 1
July 2008. Current VP of Pharmaceutical Distribution Matti Lievonen
will take retirement at the end of 2008, until which time he will
retain his seat on the Group Management Team and will also serve as
Senior Advisor in the business of Pharmaceutical Distribution in
Finland.
The Group Management Team at Oriola-KD as of 1 May 2008 comprises the
following heads of businesses and Group support functions: Eero
Hautaniemi (Chair), Claes von Bonsdorff, Birgitta Gunneflo, Henry
Haarla (until 31 May 2008), Thomas Heinonen (as of 1 June 2008),
Pellervo Hämäläinen, Anne Kariniemi, Jukka Niemi, Teija Silver, Ilari
Vaalavirta, Kimmo Virtanen (Deputy Chair), and Matti Lievonen until
the end of 2008.
Future outlook
Oriola-KD's outlook for 2008 is based on external market forecasts,
agreements with principals, cumulative orders and management's
estimates. Long term fundamentals and growth prospects are deemed to
remain favourable in the healthcare market.
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 Russian pharmaceutical market is estimated to see
growth of nearly 20 percent annually in the next few years. Growth in
the market for healthcare equipment and supplies in Finland and
Sweden is estimated to outpace that of the pharmaceutical market.
Invoicing in the Pharmaceutical Trade business segment in 2008 is
estimated to rise due to market growth and expansion to Russia.
Invoicing in the Healthcare Trade business segment is projected as
lower than in the previous year due to the Dental Trade merger with
and into Lifco Dental and the sale of the home distribution business
in Sweden. Oriola-KD's invoicing is expected to surpass that in 2007.
Operating Profit in the Pharmaceutical Trade business segment is
anticipated to see positive development in 2008. Oriola-KD is
substantially invested in growth projects and capitalising on the
potential deregulation of the pharmacy market in Sweden, which may
give rise to additional expenditure in 2008. Operating Profit for
2008 in the Healthcare Trade business segment is expected to fall
from the previous year due to the reported changes in principals in
Finland. The merger in the Dental Trade business is estimated to
improve comparable Operating Profit for 2008.
Oriola-KD aims to make further disclosures on the impact on Operating
Profit of the Russian acquisition as part of its interim report on
the second quarter of 2008. Oriola-KD's Operating Profit for 2008
excluding the effect of the acquisition in Russia is anticipated to
exceed the previous year's comparable Operating Profit.
Tabels
Income Statement, EUR
million 1.1.-31.03.2008 1.1.-31.03.2007 1.1.-31.12.2007
Net sales 318.0 355.8 1377.3
Cost of goods sold -282.0 -318.0 -1232.0
Gross profit 35.9 37.8 145.2
Other operating
income 1.2 0.4 2.3
Selling and
distribution expenses -25.8 -26.4 -104.5
Administrative
expenses -3.4 -4.1 -14.9
Profit from
associated company 0.6 0.0 1.0
Operating profit 8.5 7.8 29.1
Financial income and
expenses 0.6 0.3 1.9
Profit before taxes 9.1 8.1 31.0
Tax expense*) -2.1 -2.0 -7.3
Profit for the period 6.9 6.1 23.7
of which available
for:
Parent company
shareholders 6.8 6.0 23.3
Minority interest 0.2 0.1 0.4
Earnings per share:
Basic earnings per
share (EUR) 0.05 0.04 0.16
Diluted earnings per
share (EUR) 0.05 0.04 0.16
*) The tax expense for the period has been calculated as the
proportional share of the total estimated taxes for the financial
year.
Balance sheet, EUR million 31.03.2008 31.3.2007 31.12.2007
Non-current assets
Property, plant and equipment 54.8 61.1 56.3
Goodwill 34.0 34.2 33.9
Other intangible assets 3.8 6.6 4.5
Investments in associates and
available-for-sale investments 27.8 0.0 27.1
Other non-current receivables 9.9 10.9 10.6
Deferred tax assets 0.1 0.1 0.2
Non-current assets total 130.4 112.8 132.5
Current assets
Inventories 179.6 181.9 180.9
Trade and other receivables 230.6 221.7 201.0
Cash and cash equivalents 98.5 66.7 131.0
Current assets total 508.7 470.4 512.9
ASSETS TOTAL 639.1 583.2 645.4
Balance sheet, EUR million 31.03.2008 31.3.2007 31.12.2007
Non-current liabilities
Share capital 36.2 36.2 36.2
Other funds 30.1 30.1 30.1
Retained earnings 125.1 112.4 129.2
Net assets of the parent company
shareholders 191.5 178.7 195.5
Minority interest 8.3 8.3 8.1
Net assets total 199.8 187.1 203.6
Non-current liabilities
Deferred tax liabilities 8.5 9.7 8.7
Pension liability 4.4 4.0 4.4
Provisions 0.0 0.0 0.0
Interest-bearing non-current
liabilities 0.3 0.3 0.3
Other non-current liabilities 0.2 0.4 0.4
Current liabilities total 13.4 14.4 13.8
Current liabilities
Trade payables and other current
liabilities 407.1 365.3 387.4
Provisions 0.0 1.0 0.0
Interest-bearing current
liabilities 18.8 15.4 40.7
Current liabilities total 425.9 381.7 428.1
EQUITY AND LIABILITIES TOTAL 639.1 583.2 645.4
Changes in
shareholder's
equity:
Equity of
the parent
Share Other Translation Retained company Minority
EUR million capital funds differences earnings shareholders interest Total
Shareholder's
equity
1.1.2007 36.2 30.1 0.0 116.9 183.3 8.5 191.8
Translation
differences -1.8 -1.8 -0.3 -2.1
Dividend
Paid -8.5 -8.5 -8.5
Hedge on net
investment in
foreign
subsidiary -0.3 -0.3 -0.3
Change in
minority
interest
Other changes
Share based
payments 0.1 0.1 0.1
Taxes related
to items
booked into
equity
Items booked
into equity
Profit for
the period 6.0 6.0 0.1 6.1
Shareholder's
equity
31.3.2007 36.2 30.1 -1.8 114.2 178.8 8.3 187.0
Shareholder's
equity
1.1.2008 36.2 30.1 -2.5 131.7 195.5 8.1 203.6
Translation
differences 0.4 0.4 0.0 0.4
Dividend
distribution -11.3 -11.3 -11.3
Hedge on net
investment in
foreign
subsidiary
Change in
minority
interest
Other changes 0.0
Share based
payments 0.1 0.1 0.1
Taxes related
to items
booked into
equity
Items booked
into equity
Profit for
the period 6.8 6.8 0.2 6.9
Shareholder's
equity
31.03.2008 36.2 30.1 -2.2 127.3 191.5 8.3 199.8
Cash flow statement,
EUR million 1.1.-31.03.2008 1.1.-31.03.2007 1.1.-31.12.2007
Operating profit 8.5 7.8 29.1
Depreciation 2.3 2.7 10.4
Change in working
capital -20.4 -28.8 6.8
Cash flow from
financial items and
taxes -1.3 -1.4 -5.5
Other adjustments -0.3 -1.0 -1.9
Cash flow from
operating activities -11.2 -20.7 39.0
Cash flow from
investing activities 0.4 -0.9 -19.1
Cash flow from
financing activities -22.0 -23.9 -0.7
Net change in cash
and cash equivalents -32.7 -45.6 19.1
Cash and cash
equivalents at
beginning of period 131.0 112.9 112.9
Foreign exchange
difference 0.3 -0.6 -1.0
Net change in cash
and cash equivalents -32.7 -45.6 19.1
Cash and cash
equivalents at end of
period 98.5 66.7 131.0
Change in property, plant and
equipment
milj.EUR 1.1.-31.03.2008 1.1.-31.03.2007 1.1.-31.12.2007
Carrying amount at
the beginning of the
period 56.3 63.3 63.3
Additions 0.9 1.3 5.1
Disposals -0.8 -0.5 -3.5
Depreciation -1.6 -1.9 -7.3
Translation
differencies 0.1 -1.1 -1.4
Carrying amount at
the end of the period 54.8 61.1 56.3
Key figures and
rations 1.1.-31.03.2008 1.1.-31.03.2007 1.1.-31.12.2007
Equity ratio, % 32.3% 32.9% 33.7%
Equity per share, EUR 1.35 1.27 1.38
Return on capital
employed (ROCE), % 17.0% 16.4% 14.2%
Return on equity, % 13.8% 12.8% 12.0%
Net interest bearing
debt, Me -79.5 Me -50.9 Me -90.0 Me
Gearing, % -39.8% -27.2% -44.2%
Earnings per share,
EUR 0.05 0.04 0.16
Average number of
share, tpcs 141 326 141 258 141 258
Forward contracts
and contingent
liabilities
31.3.2008
Positive fair Negative fair Nominal values
EUR million value value of contracts
Hedging of a net
investment in an
independent foreign
unit
Other forward and
currency swap
contracts -0.0 30.6
FX options purchased 65.1
31.3.2007
Positive fair Negative fair Nominal values
EUR million value value of contracts
Hedging of a net
investment in an
independent foreign
unit 0.0
Other forward and
currency swap
contracts 0.0 6.1
EUR million 31.3.2008 31.3.2007 31.12.2007
Contingent for own
liabilities
Guarantees given 2.8 4.9 3.1
Real-estate
mortgages given 2.0 1.0 2.0
Mortgages on company
assets 22.0 22.1 21.9
Other guarantees and
liabilities 1.2 2.3 1.9
Total 28.0 30.3 28.9
Contingent for
liabilities of other
parties
Guarantees given on
behalf of external
parties 0.0 0.0 0.0
Leasing-liabilities
(operating
liabilities) 0.5 0.6 0.3
Rent contingent 4.7 6.8 5.0
Invoicing by
business segment,
EUR million 1.1.-31.03.2008 1.1.-31.03.2007 1.1.-31.12.2007
Pharmaceutical Trade
business segment 592.1 563.2 2253.4
Healthcare Trade 51.6 58.6 234.7
Dental Trade 0.0 13.2 36.5
Group Total 643.6 634.9 2524.5
Oriola-KD has two business segments: the Pharmaceutical Trade
business segment and the Healthcare Trade
business segment, which includes the share of prfotis from the
associated company.
Net sales by
business segment,
EUR million 1.1.-31.03.2008 1.1.-31.03.2007 1.1.-31.12.2007
Pharmaceutical Trade
business segment 277.3 291.3 1135.8
Healthcare Trade 40.6 51.7 205.9
Dental Trade 0.0 12.9 35.6
Group Total 318.0 355.8 1377.3
Operating profit by
business segment,
EUR million 1.1.-31.03.2008 1.1.-31.03.2007 1.1.-31.12.2007
Pharmaceutical Trade
business segment 5.9 5.1 17.4
Healthcare Trade 2.9 2.6 12.6
Dental Trade 0.6 1.1 2.2
Group items -0.8 -1.0 -3.2
Group total 8.5 7.8 29.1
Average number of
personnel 1 288 1 485 1 432
Number of personnel
at the end of the
period 1 288 1 494 1 302
Invoicing by business
segment, EUR million 1-3/2008 10-12/2007 7-9/2007 4-6/2007 1-3/2007
Pharmaceutical Trade
business segment 592.1 571.4 543.0 575.9 563.2
Healthcare Trade 51.6 67.3 52.1 56.7 58.6
Dental Trade 0.0 1.3 10.2 11.8 13.2
Group Total 643.6 640.0 605.2 644.4 634.9
Net sales by business
segment, EUR million 1-3/2008 10-12/2007 7-9/2007 4-6/2007 1-3/2007
Pharmaceutical Trade
business segment 277.3 270.7 278.3 295.5 291.3
Healthcare Trade 40.6 59.5 45.6 49.2 51.7
Dental Trade 0.0 1.3 9.9 11.5 12.9
Group Total 318.0 331.6 333.8 356.1 355.8
Operating profit by
business segment, EUR
million 1-3/2008 10-12/2007 7-9/2007 4-6/2007 1-3/2007
Pharmaceutical Trade
business segment 5.9 2.7 5.0 4.6 5.1
Healthcare Trade 2.9 3.9 3.4 2.8 2.6
Dental Trade 0.6 1.0 0.1 0.2 1.1
Group items -0.8 -0.5 -0.5 -1.2 -1.0
Group total 8.5 7.0 8.0 6.3 7.8
Net sales by market,
EUR million 1.1.-31.03.2008 1.1.-31.03.2007 1.1.-31.12.2007
Finland 148.7 148.1 570.1
Other Nordic
countries 156.5 195.0 756.5
Other Europe 12.7 12.6 49.2
Other countries 0.0 0.2 1.4
Total 318.0 355.8 1377.3
Net sales by market,
EUR million 1-3/2008 10-12/2007 7-9/2007 4-6/2007 1-3/2007
Finland 148.7 143.4 135.3 143.4 148.1
Other Nordic countries 156.5 174.9 187.1 199.6 195.0
Other Europe 12.7 12.8 11.3 12.5 12.6
Other countries 0.0 0.5 0.1 0.7 0.2
Total 318.0 331.6 333.8 356.1 355.8
Espoo, 24 April 2008
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 (0)10 429 2109
Email: eero.hautaniemi@oriola-kd.com
Kimmo Virtanen
CFO
Tel. +358 (0)10 429 2069
sähköposti: kimmo.virtanen@oriola-kd.com
Pellervo Hämäläinen
Vice President, Communications and IR
Tel. +358 (0)10 429 2497
Email: pellervo.hamalainen@oriola-kd.com
Distribution:
OMX Nordic Exchange Helsinki
Key media
Released by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola-kd.com
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