Orion Corporation upgrades the full-year outlook for 2020, provided on 5 February 2020, for the part regarding operating profit. In January-March 2020 Orion’s preliminary net sales were EUR 280 million and preliminary operating profit was EUR 84 million.
Towards the end of the first quarter of 2020, the COVID-19 pandemic caused significant increase in demand, causing the sales and operating profit in the period to exceed the expected level. This was partly due to product hoarding and stockpiling and partly to an increase in actual demand for products.
As regards Specialty Products unit, the company estimates the sales growth that was caused by the spike in demand in the early part of 2020 to level off during the year. The sales of generic products in Orion‘s portfolio manufactured by other pharmaceutical companies are estimated to be lower than in the previous year due to weaker than normal availability in the second half of the year caused by the COVID-19 pandemic. However, this decrease is estimated to be compensated mainly by sales of proprietary products Dexdor® and Easyhaler® whose full-year sales are estimated to exceed previously expected level due to the strong start of the year and the COVID-19 pandemic. For these reasons, Orion still estimates the full-year 2020 net sales to be at a similar level as in the previous year even though in the first quarter of 2020 the net sales increased clearly.
Orion estimates the full-year 2020 operating profit to be higher than previously estimated due to the strong start of the year and because the full-year sales of proprietary products Dexdor® and Easyhaler®, that are mainly delivered to European markets, are estimated to exceed previously estimated level.
The new outlook is based on the assumption that Orion‘s own production can continue normal operations despite the COVID-19 pandemic. This requires that Orion continues to succeed in protecting its employees and employee absence rates do not significantly increase, that personal protective equipment, starting materials, intermediate products and materials are available and that the logistics chains are sufficiently functional.
New full-year outlook, provided on 24 April 2020
Orion estimates that in 2020 net sales will be at a similar level as in 2019 (net sales in 2019 were EUR 1,051 million).
Operating profit is estimated to be at a similar level as in 2019 (in 2019 operating profit was EUR 253 million).
Previous full-year outlook, provided on 5 February 2020
Orion estimates that in 2020 net sales will be at a similar level as in 2019 (net sales in 2019 were EUR 1,051 million).
Operating profit is estimated to be lower than in 2019 (in 2019 operating profit was EUR 253 million).
Orion publishes Interim Report for January-March 2020 on Tuesday 28 April 2020.
Orion Corporation
| Timo Lappalainen President and CEO | Olli Huotari SVP, Corporate Functions |
Contact persons:
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tel. +358 10 426 2883
Tuukka Hirvonen, Investor Relations
tel. +358 10 426 2721
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Orion Corporation
Communications
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http://www.orion.fi/en
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Orion is a globally operating Finnish pharmaceutical company – a builder of well-being. Orion develops, manufactures and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients. The company is continuously developing new drugs and treatment methods. The core therapy areas of Orion's pharmaceutical R&D are central nervous system (CNS) disorders, oncology, Finnish heritage rare diseases and respiratory diseases for which Orion develops inhaled Easyhaler® pulmonary drugs. Orion's net sales in 2019 amounted to EUR 1,051 million and the company had about 3,300 employees at the end of the year. Orion's A and B shares are listed on Nasdaq Helsinki.