20. March 2023
Orifarm reports growth in a challenging year
In a year of macroeconomic challenges and a focus on the continued transformation of Orifarm, the family-owned pharmaceutical company realizes increased revenue and improved operating results in 2022.
Highlights from the 2022 accounts:
Revenue increased by 7% to €1,513m, which is a new record for Orifarm. Growth was driven by both business units, Health Access with 3% and Healthcare with 22%. Healthcare's growth, however, was positively affected by the fact that sales from acquired Takeda products only contributed to nine months of 2021 against all 12 months in 2022.
Gross profit increased by 22% to a new record of €223.9m.
The result for the year ended at €27.4m, which is lower than expected. This is due to one-off costs in connection with the closure of the Viminco factory in Skælskør, Denmark, as well as derived consequences of delivery issues, especially in the second half of 2022.
Continued significant investments to strengthen Orifarm for future growth. Investments increased in 2022 by 35% to €26.2m, which brings the total investments in the past three fiscal years to around €65m.
The number of employees increased by 9% to 2,136 employees compared to the previous year (average number of full-time employees).
CEO Erik Sandberg, Orifarm Group A/S, comments on the result for 2022:
"We are once again increasing turnover with growth in both of our core businesses. Regrettably, our result after tax is unfortunately lower than expected. This is due to one-off costs in connection with closing our factory in Skælskør, Denmark, but unfortunately also the derived consequences of delivery problems. Externally, increased interest rates have also affected the result negatively.”
In many ways, 2022 has been an unusual year for Orifarm, as the group has been focusing on completing the integration of over 110 products and two factories, which it took over in connection with the carve-out acquisition from Takeda in 2021. Orifarm completed the acquisition on 1 May 2022.
"A carve-out acquisition is a huge exercise, which has also brought challenges for us. What frustrates me the most is that it has also brought about delivery problems, especially in the second half of 2022, with the problems it brings for customers and patients. We have put everything into getting it resolved, and I am happy to state that we are on the right track," says Erik Sandberg and at the same time sends his thanks to the employees.
“I would like to extend my appreciation to all of our many dedicated colleagues for their great continued efforts in providing medicine to customers and patients, and at the same time taking part in the transformation of Orifarm,” says Erik Sandberg.
Expectations for 2023
In 2023, Orifarm expects to continue the transformation of the business, as part of the execution of the company's growth strategy.
"We are in a volatile time why it is difficult to predict the macroeconomic development, e.g., the interest rates, which necessitates that we remain agile and navigate in relation to the opportunities that arise. We continue to invest in building a more scalable business that enables us to integrate potential future acquisitions even better," says Erik Sandberg.
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