ORION CORPORATION STOCK EXCHANGE RELEASE INSIDE INFORMATION 19 OCTOBER 2020 at 20.35 EEST
Orion upgrades full-year outlook for 2020
Orion Corporation upgrades the full-year outlook for 2020, provided on 8 July 2020, both for the part regarding net sales and operating profit. In 2020, the net sales are estimated to be at a similar level as in 2019 or slightly higher than in 2019. Operating profit is estimated to be higher or clearly higher than in 2019.
In January–September 2020 Orion’s preliminary net sales were EUR 823 million and preliminary operating profit was EUR 246 million.
Due to the COVID-19 pandemic the whole year international sales of Dexdor® will be clearly higher than expected at the start of the year. The demand spike of generic prescription drugs and self-care products in March has levelled off during the year as expected but the full-year sales of some products, however, will be higher than expected at the start of the year. Additionally, the risk of COVID-19-induced lower product availability in 2020 has reduced significantly. Due to these reasons, among others, Orion estimates the full-year 2020 net sales to be at a similar level as in 2019 or slightly higher than in 2019.
Mainly due to the COVID-19 pandemic the full-year operating expenses of Orion will be lower than estimated earlier. Due to the net sales that will be higher than estimated at the start of the year, favourable sales margin structure of the sold products and lower than estimated earlier operating expenses Orion estimates the full-year 2020 operatig profit to be higher or clearly higher than in 2019.
The new outlook is based on the assumption that Orion‘s own production can continue normal operations despite the COVID-19 pandemic also during the remainder of the year. 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 19 October 2020
Orion estimates that in 2020 net sales will be at a similar level as in 2019 or slightly higher than in 2019 (net sales in 2019 were EUR 1,051 million).
Operating profit is estimated to be higher or clearly higher than in 2019 (in 2019 operating profit was EUR 253 million).
Previous full-year outlook, provided on 8 July 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 slightly higher or higher than in 2019 (in 2019 operating profit was EUR 253 million).
Orion publishes Interim Report for January–September 2020 on Wednesday 21 October 2020.
| Timo Lappalainen|
President and CEO
| || Olli Huotari|
SVP, Corporate Functions
Jari Karlson, CFO
tel. +358 10 426 2883
Tuukka Hirvonen, Investor Relations
tel. +358 10 426 2721
Orionintie 1A, FI-02200 Espoo, Finland
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.
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