Strategy and Targets

Oriola-KD's different customer groups are at the core of its updated strategy. To customers, the new operating model will be evident in the form of an improved customer experience and other benefits.

People have become more interested in their own health and are living longer. They are also spending more money on health and wellbeing. Consumers are now more demanding, are willing and able to use technology and are used to services that are available 24/7. The retail business is becoming increasingly digital, and electronic services are becoming a necessity.

The pharmaceutical market is undergoing a radical change. The roles of the various operators are changing, new kinds of market participants are emerging and consolidation is occurring in the market. Pharmaceutical companies are specialising and are focusing on their core businesses. Digitalisation has an impact on all operators and the need for electronic services is growing. These changes are increasing the demand for new services.

The percentage of the population made up of elderly people is rapidly growing, which is leading to increasing healthcare needs. This change is creating new business opportunities for both the public and private healthcare sectors.

Strategy in a Changing Business Environment

Oriola-KD helps consumers to enhance their wellbeing. In its own pharmacies Oriola-KD offers expert advice on health and wellbeing and an extensive and high-quality selection of products. Oriola-KD offers an extensive range of services for operators in the healthcare sector in Sweden, Finland and the Baltic countries. The company unites consumers and pharmaceutical companies in a unique way. Oriola-KD provides pharmaceutical companies with an effective route to the market and promotes people’s wellbeing by ensuring that pharmaceuticals, consumer health products and services are delivered in a safe and customer-friendly manner.

Oriola-KD is Meeting the Business Environment Challenges by:

  • expanding traditional pharmaceutical distribution into services for pharmaceutical companies and the retail trade
  • offering pharmaceutical companies a single point access to Nordic pharmaceutical markets
  • developing online services in its service business and as part of the strategy for its consumer business
  • offering pharmaceutical services to the healthcare sector, including hospitals
  • offering an excellent customer experience and product assortment
  • improving efficiency to enhance competitiveness

New business areas as of January 2016

Oriola-KD is changing its operating model in order to meet the challenges of the changing business environment and to serve customers even better. Oriola-KD’s operations will be divided into three business areas and operating segments: Consumer, Services and Healthcare.

The Consumer business area focuses on the needs of consumers’ in health and wellbeing related products and services.

The Services business area offers tailored services to pharmaceutical companies, pharmacies and other customer groups.

The Healthcare business area offers services to hospitals, healthcare centres and other healthcare sector operators.

The main goals for 2016

  1. Active development of digital business
  2. Successful execution of the new efficiency improving strategic development initiatives
  3. Further development of  the healthcare business

New long-term financial targets

Long-term financial targets:

  • Business growth at the rate of the market
  • Annual EPS growth over 5 per cent without non-recurring items
  • Return on capital employed of over 20 per cent
  • Adjusted gearing ratio of 30-60 per cent*

*Non-recourse trade receivables are added to the net debt