Orifarm Group A/S delivers record-breaking result for the fifth successive year

With more than 1 billion EUR in turnover, the Odense based pharmaceutical company Orifarm can look back at 2020 as yet another record-breaking year. 2020 also marked the company’s 25th anniversary and included the company’s largest acquisition in history. Turnover increased 14% compared to 2019 and profit before tax excl. non-recurring items reached 51.4 million EUR, corresponding to a rise of 12% compared to the previous financial year.

Orifarm’s growth for the fifth consecutive year is the result of a rise in sales of both parallel imported pharmaceuticals and generic pharmaceuticals. While sales of parallel imported pharmaceuticals constituted the largest share of the total turnover of 1,115 million EUR, sales of generic pharmaceuticals accounted for nearly 40% of the profit before tax in 2020.

Orifarm’s CEO Erik Sandberg is pleased with the result and aware that it happens against a dark backdrop.

“We cannot look back at 2020 without thinking about the COVID-19 virus, which hit many people, businesses, and societies hard. It is only thanks to the resilience, engagement, commitment, and flexibility of all of Orifarm’s employees that we  managed to continue our growth journey and to seize opportunities such as the acquisition of the Takeda assets. As a result of our combined efforts, we came out of 2020, where we also celebrated our 25th anniversary, stronger than ever”, says CEO Erik Sandberg.

The year 2020 also marked the completion of the next step of the succession of Orifarm, where the owner of Orifarm Hans Bøgh-Sørensen transferred further shares to his three children Christian, Anne-Charlotte, and Andreas Bøgh-Sørensen to ensure that Orifarm will remain in the family’s ownership in future generations. Further, Hans Bøgh-Sørensen took over as Chairman of the Board of Directors.

Further growth and a more balanced business portfolio

Orifarm expects to achieve further organic growth within its two main business areas over the next years. In 2020, the business sold more than 28.3 million units of pharmaceuticals and healthcare products, representing an increase of 8.8% compared to 2019.

Meanwhile, the acquisition of Takeda, including more than 100 products, two production facilities, and above 600 employees, will reinforce Orifarm’s position in key markets and expand its geographical reach to new markets. It will also lead to a more balanced business portfolio by making the parallel import of pharmaceuticals and the sales and production of prescription pharmaceuticals and over the counter (OTC) products equally important going forward.

“In Orifarm’s 25 years of history, the owner family has always focused on creating a robust company. The acquisition of the Takeda assets is a real gamechanger for us, which will provide a larger portfolio of products and ensure a better balance between our business areas. As a result, we are in an even better position to handle future market fluctuations and unforeseen events such as COVID-19”, says CEO Erik Sandberg.

Outlook for 2021

For 2021, Orifarm Group A/S expects revenue growth in the range of 10-15% and an operating profit growth in the range of 60-70%.

 

For further information, please contact: CEO Erik Sandberg tel. +45 2265 0121

 

Key ratio – Orifarm Group (in million EUR)

 

2020

2019

2018

2017

2016

Revenue

1,115

982

833

797

726

Gross profit

169

151

131

120

109

Operating income excl. non-recurring items

54

48

40

34

32

Net financials

-3

-2

-3

-5

-8

Profit before tax excl. non-recurring items

51

46

35

29

16

 

Download Annual Report here