Oriola announces strategy, financial targets and sustainability agenda: The leading specialist in wholesale of pharmaceuticals and health products

Oriola Corporation  Stock Exchange Release  31 October 2023 at 8:35 a.m. EET

Oriola announces strategy, financial targets and sustainability agenda: The leading specialist in wholesale of pharmaceuticals and health products

Oriola’s Board of Directors have decided on Oriola’s refined strategy, new long-term financial targets and sustainability agenda. The period for the strategy and sustainability agenda is 2024–2026.

“For the past two years, our focus has been on Oriola’s long-term transformation. This journey has meant reconnecting with our roots, as our strength is in the wholesale and distribution business. We are now taking the next steps to build the new Oriola. We will be strengthening our focus on wholesale business and we aim to be the leading specialist in wholesale of pharmaceuticals and health products,” comments CEO Katarina Gabrielson.

“We have the ability to capitalise on our existing supply chain infrastructure to enhance our efficiency, and the capacity to invest in our business and expand through mergers and acquisitions. We are working with our customers to combine our expertise and resources to promote a more sustainable development in society. We enable our customers to succeed by being a professional and forward-looking business partner and by delivering insights to support their strategic decision-making. Through an integrated customer offering we ensure value-adding and profitable partnerships,” Gabrielson continues.

Oriola’s new long-term financial targets and dividend policy:

• Growth: Annual sales growth at the rate of market, minimum 4%
• Profitability: Adjusted EBIT margin above 3%
• Equity: Return on equity >20%
• Dividend policy: Oriola’s aim is to pay out an increasing annual dividend of 2/3 of net profit.

The strategy aims to capture the full value of Oriola’s operations, to strengthen Oriola’s position in the markets and to create long-term shareholder value. Oriola has set three goals to drive the strategy forward.

• Strong partnerships: To improve customer value through commercial focus and excellence, and by developing a more efficient, sustainable and collaborative working culture. To develop data and insight driven business, including forward looking data management.
• Enhanced efficiency: To increase warehouse capacity and efficiency by investing in both infrastructure and technology. Additionally, the activities include supporting organic profitable growth that is focused on large yet efficient volumes and customer segments.
• Portfolio and market expansion: To grow the wholesale business by developing Oriola's existing brands and new brands, product categories and customer segments. The plan is also to expand Oriola’s business through acquisitions. In addition, activities include investments in specific differentiating and digital services.

Oriola’s sustainability agenda is a key part of the business strategy and has the following long-term goals:

• Environment: Pursuing a net-zero impact on climate and carbon neutrality by 2030. Oriola is committed to setting science-based targets.
• Social: Advancing a sustainable people journey 
• Governance and society: Safeguarding deliveries for health and wellbeing

The strategy, financial targets and sustainability agenda will be presented today in connection with the Q3 2023 results webcast.

Oriola Corporation

Further information:

Katarina Gabrielson, CEO
email: [email protected]

Timo Leinonen, CFO
email: [email protected]

Distribution:

Nasdaq Helsinki Ltd
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