Strategy implementation enhances financial performance

Throughout the year we progressed well with our refined strategy. We strengthened customer-centricity to build strong partnerships, expanded our wholesale business and introduced new data-driven services. Additionally, we announced a new operating model aimed to accelerate strategy execution. In 2024, our organic net sales growth reached 3%, driven by both distribution and wholesale. Excluding the Swedish dose dispensing business, our adjusted EBIT exceeded previous year’s level, amounting to EUR 21.6 million.

In Q4, Oriola’s organic net sales growth was 3% while reported net sales grew by 14% to EUR 441 million. Adjusted EBIT excluding the Swedish dose dispensing business was EUR 6.1 (6.2) million and reported adjusted EBIT was EUR 6.4 (5.4) million.

The Distribution segment’s organic net sales growth was 2% in Q4. Market volumes continued to grow, although we saw significant fluctuation of volumes within the quarter, partly due to VAT and reimbursement changes in Finland. Sales growth and lower freight costs improved the segment’s profitability, while operating expenses were above last year due to high volumes in December. Adjusted EBIT increased by 22% to EUR 5.9 million. In 2024, a strategic focus area within distribution was to enhance customer-centricity through close relationships with customers, applying a structured approach and increasing dialogue with them. Thanks to these efforts, we retained all strategic accounts and have new customers onboarding at the start of 2025.

In Q4, net sales in the Wholesale segment grew by 5% supported by growth both in Finland and Sweden. Profitability improved by 10% with adjusted EBIT reaching EUR 2.0 million. During the year – in line with our refined strategy – we built the base to grow the wholesale business in Finland by developing our capabilities and competences as well as by expanding our offering. This took somewhat longer than anticipated but we achieved gradual increase and in the end a strong Q4 with double-digit growth in key sales channels. In advisory services, the recently launched data-driven service that provides market insights to support pharmaceutical companies in their decision-making, quickly gained traction among our customers.

Our strategic investment to renew Oriola’s ERP (enterprise resource planning) and WMS (warehouse management systems) has proceeded according to plan. By the end of 2024 we completed the design phase and we will continue to work diligently as the first deployment in Sweden approaches.

We are proud of our societal role in ensuring safe and accurate deliveries of pharmaceuticals and other health products. Our commitment is to deliver pharmaceuticals within 24 hours of ordering and we measure our success by the picking quality of deliveries, which in 2024 reached 99.8%. We have decreased Scope 1 and 2 carbon emissions by 90% from the base year 2019. Going forwards, as part of our commitment to set science-based targets, we will expand our emissions reporting especially for Scope 3 carbon emissions. Wholesale and distribution typically create large amounts of waste, which is why enhancing recycling is a critical initiative for us. In 2024, our recycling rate improved to 85% (81%).

During 2024, the joint venture company Kronans Apotek continued to develop its broad network of almost 500 pharmacies and enhance its e-commerce sales. With a total market share of 21%, ranking third in size in the Swedish market and experiencing double-digit growth in the digital sales channel, the company is well-positioned to further improve its profitability and competitiveness in 2025. Oriola expects Kronans Apotek to reach profitability level representing industry benchmark by 2027. The integration process has been more complex and slower than expected, especially related to the ERP integration and organisation setup. Kronans Apotek is a key strategic partner for Oriola, and we will actively support its value creation as a major shareholder.

At the end of the year, we announced plans to renew our operating model and subsequently made new appointments to our management team. The aim of these initiatives is to further enhance customer focus, drive sales growth and strengthen our competitiveness in a changing business environment. I am confident that we are well-positioned to accelerate the execution of our refined strategy, and together with our people, explore new growth opportunities and enhance value creation to our customers and stakeholders. I would like to take this opportunity and thank everyone at Oriola for their dedication and hard work over the past year. I also extend my gratitude to our customers, partners and shareholders for their continued support and trust in us.

Katarina Gabrielson is Oriola’s CEO. This text was published in the Financial Statements Release 2024 on 4 March 2025. The complete report can be downloaded from the link below.