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Sammanfattning
Transkription
  • Oriola announced a replanned ERP (SAP) program with a timeline extended to 2028, a change of implementation partner, increased internal staffing, and cost escalation from EUR 35 million to EUR 54 million, which management says makes the project more secure (Gabrielson).
  • Under IFRS 18 the ERP costs will be recognised as operating one-offs rather than CapEx, temporarily reducing the equity ratio; management expects asset releases and future efficiencies to balance the impact and maintains the target to double profitability by 2029 (Gabrielson).
  • Q3 was described as a solid quarter with net sales growth in both distribution and wholesale; profitability was held steady but affected by a one-off inventory correction of EUR 0.7 million, while the distribution segment showed particularly strong profitability (Gabrielson).
  • Kronans Apotek made a positive contribution with ongoing cost-savings and sales initiatives (including a EUR 20 million cost-reduction target), and management is confident fuel surcharges are mitigated for Q4, supporting full-year earnings improvement guidance (Gabrielson).

This content is generated by AI based on a video transcript. You can give feedback on it in the Inderes forum.

Ansvarsfriskrivning: Detta är en maskin­genererad transkription och kan innehålla felaktigheter.

PM
Pia Maljanen
00:00 - 00:20

Greetings from Oriola headquarters in Espoo. Oriola released their Q3 results today, and that's why I'm here with their CEO, Katarina Gabrielson. Hello, Katarina. Hi. So you announced a delay and a significant cost increase in your ERP project earlier this month. Can you explain what the changes were and why they happened?

KG
Katarina Gabrielson
00:21 - 01:16

What we have done is, like you said, announced this delay, and it's based on replanning, in fact, of the program. So we are taking the learnings from quarter one, the first deployment of the Swedish SAP implementation. And also then revised the timeline based on what we do in the building in Järvenpää, the new distribution center here in Finland. And then we have taken more ownership from our own side. And that means that we have also staffed up a little bit in Oriola to take this on. And we have also changed the system implementation partner.

And this means that we have prolonged the project until 2028 to align it with the implementation, as well as being able to take the deployment into phases. The cost was then rising from 35 million to 54 million, but it will also be a more secure project. So that's the background for it. Okay.

PM
Pia Maljanen
01:17 - 01:34

You are now planning to finish the ramp-up of the new Finnish distribution center, let's say, as well as the ERP project during '28. While your financial targets aim for significantly higher earnings in '29. Can you extract all the efficiencies from these investments in that short a time?

KG
Katarina Gabrielson
01:34 - 02:04

What there is, is that in the CMD, we promised to double the profitability by 2029. And that is still valid. And you can say that for us, it's really important to get these projects in place, both the ERP part and the WMS part and the Järvenpää, because that's the fundament of getting the investments here in place. And 2029 is, of course, so that we need to have this basis in place. And when we have that, we see that we still have the possibility to reach this one.

PM
Pia Maljanen
02:04 - 02:13

Okay. The higher ERP cost also means a lower equity ratio for you in the coming years. Do you see that as an issue?

KG
Katarina Gabrielson
02:14 - 03:05

I would say that it's a phase-in part in this one. We are, according to IFRS 18, I think it is, we need to take now the SAP project, ERP project, into operating one-offs in the normal. It's not a CapEx, it's a normal cost. And that is of course burdening the equity in that aspect.

But at the same time, we should remember that when we have now done the project in place, it will then ease up the burden on this one. On top of that, we also have this land where we are today that will then be released when we leave it. And we also have some other parts that we can release. So I would say it's a balance on when we release certain things. Of course.

PM
Pia Maljanen
03:05 - 03:09

Then if you move on to Q3, what were the highlights of the quarter?

KG
Katarina Gabrielson
03:10 - 03:52

I was thinking that we had a solid quarter overall. Yes. We had the same profitability level, but that's mainly due to a one-off inventory correction that we've had of €0.7 million. And that is affecting the profitability part. Otherwise, we can see that there was net sales growth in both segments. So both the distribution segment and wholesale segment performed well in the sales part.

And also the profitability part was good, especially in the distribution segment, since the service segment was affected by this one-off provision. So business is, as I see it, solid in that aspect. Good.

PM
Pia Maljanen
03:53 - 04:01

Kronans posted a positive contribution to your P&L and improved earnings with no one-offs this quarter. Can we expect this to be sustainable?

KG
Katarina Gabrielson
04:02 - 04:42

It's always, I would say, when do you say it's sustainable? It's the second quarter. Now that we can see that it's improving and we are doing everything we can. Of course, both on the board and in the management, to continue this one. And there is a strong belief that that is like that.

What is also presented in the CMD is, of course, that we have done both the cost part, the 20 million that should then be saved in Kronans, on top of also more sales. And we see that Kronans is moving towards that target. So I expect that it will be better and better. But of course, when do you say that it's completely there. Yeah. Yeah.

PM
Pia Maljanen
04:43 - 04:48

You continue to guide earnings improvement for the full year. What are the main drivers there?

KG
Katarina Gabrielson
04:48 - 05:34

For the full year? It's what we said here before. We had a good quarter with good sales. We can continue now to build on that momentum. We have new pharmaceutical company customers in the segments that will contribute to the end of the year. This fourth quarter as well as they have done in quarter three.

We also can see that we have the fuel surcharges that we talked a lot about in the second quarter, the higher fuel prices, that is now mitigated. And that will continue also in quarter four. So the sales in combination with this one, and then also the cost savings and the continuous improvements that we do every day. And of course, the cost control in that one.

PM
Pia Maljanen
05:34 - 05:46

And then finally, touching on the fuel prices you already mentioned, they have increased again in September to October. Do you expect that to hit Q4 at all? Or are you confident. That I'm confident.

KG
Katarina Gabrielson
05:46 - 06:01

That we have this now in place and that that is continuing to be in place? Of course, you never know what happens after quarter four and so on. And that's something we need to look at, both from inflation parts and fuel prices. But for quarter four, I'm confident. Good.

PM
Pia Maljanen
06:01 - 06:05

Thank you so much, Katarina, and good luck with the last quarter. Thank you.

Oriola Q3’26: Kronans Apotek showing positive development (eng.)

ORIOLA29.10.2026 klo 14.24
Pia MaljanenLocalization specialist & Community builder
Discuss

Oriola’s Q3 was broadly solid quarter. However, profitability remained at the comparison period’s level, weighed down by a one-off inventory impairment. On a positive note, Kronans Apotek continued to make progress towards improved performance. Oriola’s CEO Katarina Gabrielson comments on the quarter in an interview with Pia Maljanen.

Topics:
(00:00) Introduction
(00:10) Prolonged ERP project
(01:17) Achieving financial targets
(02:26) Financial position
(03:05) Q3 highlights
(03:53) Kronans Apotek
(04:42) Guidance
(05:35) Fuel costs

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