Progress continues at Orifarm

Orifarm Group continues its progress of recent years. The annual result shows growth in both top and bottom line, and this trend is partly due to successful acquisitions and significant growth in the sales of generic pharmaceuticals.

Denmark’s largest supplier of pharmaceuticals, Orifarm, continues the positive trend that has characterized the last years of the group.

Orifarm ended the financial year 2015 with a profit before tax of 11.5m EUR. An increase of 32% compared to the results from 2014 of 8.7m EUR.  At the same time, the Group achieved a slight increase in revenue to 759m EUR.

Particularly the area of generic pharmaceuticals, Orifarm Generics, presents significantly improved earnings in 2015 with an increase of 2.6m EUR (+ 51%) compared to 2014.

The increase in own-produced pharmaceuticals is partly due to a successful acquisition of Growth House Holding A/S, which develops, produces and sells pharmaceuticals. Additionally, the company sees continued growth in the Nordic region with increased sales of both prescription and non-prescription drugs.

“It is extremely satisfying that we continue the significant progress during 2015. In particular, the acquisition of Growth House Holding A/S has been strategically important compared to the growth journey that Orifarm Generics is currently on. Moreover, our development, production and sale of own-produced products has been strengthened”, says Ulrik Ernst Rasmussen, Managing Director of Orifarm Generics.

In the area for parallel importation of pharmaceutical drugs from EU/EEA countries, Orifarm Parallel Import also continues Orifarm’s overall positive trends, and here the group’s largest revenue still remains.

The year 2015’s profit, however, was affected negatively by the development in the Swedish currency as well as increased competition in the German market. But due to a reduction of the cost level, Orifarm Parallel Import still managed to create growth in the EBITDA of 4.2m EUR compared to 2014. At the same time Orifarm has entered into the UK market, the second largest market for parallel imported pharmaceuticals in Europe.

“I am very pleased that Orifarm continues the positive trend and presents a good result for 2015.

This year has been subject to challenges on the markets in i.e. Sweden and Germany, but at the same time we have succeeded in entering the large UK market. This development is to a large extent the result of the employees' great efforts”, says Erik Sandberg, Managing Director of Orifarm Parallel Import, adding that strategic optimization, management of inventory and cost savings also contributed positively to the financial statement.

Orifarm Group expects improved financial statements in 2016 compared to 2015 and growth in the financial statements for both Orifarm Generics and Orifarm Parallel Import.

Orifarm Group is headquartered in Odense, Denmark and employs around 1,100 employees.

For further information please contact:
CEO Orifarm Group A/S Hans Bøgh-Sørensen, phone +45 29 74 27 10

CEO Orifarm PI A/S Erik Sandberg, phone +45 22 65 01 21

CEO Orifarm Generics A/S Ulrik Ernst Rasmussen, phone +45 22 65 01 91

Key figures (MEUR)

 

2015

2014

2013

2012

Revenue

759

755

727

667

Gross result

97

91

96

93

Result of main activities excl. re-structuring

23

16

16

11

Result of financial items

-9

-8

-8

-12

Result before tax

12

9

8

-1

 

Facts about Orifarm

Orifarm Group is the largest parallel importer of pharmaceuticals and the largest supplier of pharmaceuticals in Denmark. The Group comprises a number of companies engaged in the import, production, re-packaging, distribution, registration and sale of pharmaceuticals in Scandinavia, Germany, Holland, Czech Republic and United Kingdom. The Group’s main business is parallel importing of pharmaceuticals from EU/EEA countires, which are sold in Denmark, Norway, Sweden, Finland, Holland, Germany and United Kingdom. Additionally, the group is engaged in the sales of generic pharmaceuticals in Scandinavia. A generic drug contains the same active ingredients as the original drug. The active ingredients are, however, no longer patented, and therefore the generic drug can be produced and sold at a lower price than the original.