Oriola Corporation Stock Exchange Release 13 July 2017 at 19.00
Oriola Corporation revises guidance for continuing operations adjusted operating profit
Despite the recent improvements in the performance of the Consumer business, the result of the Business Area in 2017 will remain below 2016 level. The go-live of the IT systems in Finland, planned for June, is postponed to the third quarter of 2017. The delay will result in additional costs in the Services Business Area in 2017. In the Healthcare business the costs for starting the Swedish dose dispensing production for the Norrland region are higher than anticipated, and the result of the Healthcare Business Area will stay negative in 2017.
Oriola has decided to divest its businesses in the Baltic countries. In the Half Year Financial report the Baltic businesses will be classified as discontinued operations and the assets and related liabilities will be classified as Assets for sale. The net sales of the Baltic businesses in 2016 were EUR 54 million and the Adjusted EBIT EUR 1.2 million.
Oriola's and Kesko's joint health and wellbeing store chain was approved by the competition authorities in June 2017, and the joint venture agreement was finalized on June 30. Oriola will report 50 per cent of the result of the joint venture in the Consumer Business Area EBIT. The joint venture is expected to be loss making during the build-up phase 2017 - 2019. Oriola's share of the loss in 2017 is estimated to be EUR 1.5 million.
Revised outlook for 2017
The Adjusted EBIT of continuing operations on constant currency basis is estimated to decrease from the 2016 level. The 2016 Adjusted EBIT from continuing operations, at comparable currencies, was EUR 59.3 million.
The previous guidance, published 13 February 2017 and repeated 28 April, 2017, was that the Adjusted EBIT will stay at 2016 level, which was EUR 61.1 million.
Oriola Corporation will publish the Half Year Financial report 1 January - 30 June 2017 on July 21 at 8.30. Oriola will organize a meeting for investors, analysts and the press on Friday, 21 July 2017 at 10.00 a.m. at Hotel Scandic Simonkenttä, meeting room Tapiola, Simonkatu 9, 00100 Helsinki, Finland.
For further information, please contact:
Eero Hautaniemi, President and CEO, Tel. +358 10 429 2109, E-mail: eero.hautaniemi@oriola.com
Sari Aitokallio, CFO, Tel. +358 10 429 2112, E-mail: sari.aitokallio@oriola.com
Distribution: NASDAQ OMX Helsinki Ltd., Key media
www.oriola.com