Every day, the employees work hard to challenge the pharmaceutical market to provide cheaper pharmaceuticals to millions of consumers in Europe. And the employees do it well. In 2018, Orifarm Group sold more than 25 million products - or approx. 7% more products than in 2017, and this has resulted in record turnover and earnings.
This week, Orifarm Group releases its 2018 Annual Report and the result beats all former company records. The Group's revenue increased by 4.7 % in 2018 to MEUR 833. Operating income excl. non-recurring items increased by MEUR 6.5 to MEUR 40.3, and earnings before tax increased to record high MEUR 34.9. A very satisfactory result for the Group, which also exceeds the expectations.
Erik Sandberg, who officially took over as CEO in January 2019, says:
“In many ways, 2018 has been a fantastic year for us. A year where we have met lots of challenges in the markets, and where we have been through a major reorganization internally. Nevertheless, we have succeeded in creating great results for the Group together. It proves our willingness and ability to make a difference - for consumers, society and the company. All employees can be proud of what we achieved together in 2018, as it would not have happened without them.”
More consumers have bought Orifarm's products
The Group's financial growth was especially generated in the parallel import business, which repackages and sells pharmaceutical products within the EU / EEA. The parallel import business sold 11 % more products in 2018 compared to 2017, which led to growth in both revenue and earnings in 2018.
The 2018 revenue from parallel imported products totalled MEUR 756. This is an increase of 4.9 % compared to 2017. The result of main activities excl. non-recurring items increased by MEUR 8.0 to MEUR 34.2.
In spite of intense competition in 2018, Orifarm succeeded in generating great results in Germany, which is the Group's largest market, as well as in Denmark, the Netherlands and Austria.
In Sweden, the Group's earnings has been under pressure due to the Swedish currency exchange rate, but Orifarm maintained its position at the Swedish market. The parallel import business sold more products in the UK in 2018 compared to the previous year, but the weak British currency puts pressure on the profit.
The Group's other business area, the generic pharmaceuticals, had a difficult year with stagnation in revenue and decreasing income. Nevertheless, the generic pharmaceuticals sold 4 % more products in 2018 compared to the year before.
Challenging market conditions and challenges in maintaining a stable supply of few, and normally well performing products, put pressure on the Group's revenue and earnings from the generic products.
Operating income fell by MEUR 2.6 to MEUR 9.7, however, it was possible to maintain revenue at the same level as in 2017 (MEUR 9.7).
“We have done well in 2018 in difficult conditions, and we have the ambition and the belief in being able to continue growth and a positive development for Orifarm. But we are also realistic and 2019 will be at least as challenging as 2018, characterized by strong competition at all Orifarm's markets. But we have so many skilled employees who drive Orifarm forward. Therefore, I am confident that together we can meet the common goals for 2019,” says Erik Sandberg, CEO at Orifarm Group.