Good morning everyone, a warm welcome to Oriola's Q1 results webcast. I am Tua Stenius-Örnhjelm from Oriola's Investor Relations. We have today two speakers, our CEO, Katarina Gabrielson, and CFO, Timo Leinonen. After the presentation, we open up for your questions. You may send in your questions already during the presentation. Kindly note that we are recording this webcast, and the on-demand version will be available on our website later today. Before handing over to Katarina, here is the customary disclaimer that we all should be aware of. Now without further ado, Katarina, please go ahead.
Thank you, Tua. Good morning, and welcome everyone also on my behalf. Today, we are here to present our first quarterly result for this year to you. I will start with the highlights and comments on the operating environment. Then Timo takes over and will talk you through the financials. Before the Q&A, there will also be a couple of closing remarks from me. Let's now start with the highlights. Looking at the first quarter, I'm pleased to say that we had a solid start of this year, despite some uncertainties in our operating environment. Our net sales measured in constant currency were EUR 370 million, which is at par with last year. We saw good development in the distribution of pharmaceuticals, especially in Finland. Volumes in Sweden were negatively impacted by the low import of parallel-imported medicines.
In quarter one, profitability declined to EUR 3.5 million. This was in line with our expectations. There were mainly two reasons for the development. As we communicated in connection with the fourth quarter last year, the volume in the Swedish dose dispensing business have declined, impacting profitability. Further, our transportation costs in Sweden were higher. In addition, we experienced in the first quarter a challenging overall inflationary environment. However, with strict cost control, we were able to mitigate the pressure. Operating expenses were below last year's level. As we have discussed before, we successfully completed our short-term turnaround last year. We now have a clear strategic direction and focus on a long-term transformation. In my closing remarks, I will also comment some more on this topic.
Before we move on to discuss the operating environment, I want to remind you all that towards the end of quarter one last year, consumer had hoarded pharmaceuticals, especially in Sweden, as a reaction to the war in Ukraine. This boosted the volumes, the sales, and to some extent profitability, and made quarter one 2022 a somewhat tough comparison period. When looking at our operating environment, we can see that the overall market demand in quarter one was good both in Sweden and Finland. The increased economic uncertainty has not impacted the pharmaceutical market. On the other hand, the tight situation in raw material supply that was seen already last year has continued and impacted the availability of some medicines across the whole Europe. Consumer confidence has weakened due to the high cost inflation and increasing interest rates.
Typically, in an economic downturn, it would be the traded goods that is, that would be impacted first, and then the OTC, over the counter products. On the cost side, energy and fuel prices have been stabilizing. The union negotiations were completed during the first quarter in both Sweden and Finland. Now we have a better understanding on the inflationary impact of labor costs in the coming quarters. As next, I will present more closely the market development. The pharmaceutical wholesale market continued at a healthy growth both in Sweden and Finland. In value and local currency, the market in Sweden grew by 10% and in Finland by 4%. Based on our estimates, Oriola's market share in Sweden was for 43%, which is lower than it was, the first quarter last year, while the share was stable in Finland at 44%.
In Sweden, new businesses has partly offset the decline from the last year's lost business, but the decline in market share was related to lower volumes of imported parallel-imported medicines. I'm really satisfied to inform that we have been winning new businesses during quarter one. We have won more than five new contracts, and the positive impact of these starts to materialize in the second half of this year. In dose dispensing business, the total market size has increased by around 10,000 patients in Sweden and in Finland, respectively. Oriola serves approximately 37,000 patients in Sweden, compared to last year 105,000 patients, and approximately 30,000 patients in Finland, compared to 28,000 patients last year. The decline in Sweden was related to the lost tenders last year, as communicated in the fourth quarter.
The transfer of these customers is materializing now as lower number of patients and lower sales. The regional customers in Sweden organizes public tenders processes from time to time. We continue to participate in these. The Swedish dose dispensing business continues to focus on new customer segments to develop the business. This is already visible in new contracts. With this, I'm ready with my first part, and I would like to hand over to Timo for the next part of the presentation. Timo, please.
Okay.
Thank you, Katarina, and good morning, everyone. Let's go briefly in finances. As Katarina already mentioned, it was solid start for the year. However, as said, exchange rates in Swedish krona impacted heavily on our top line, and that's the reason why our invoicing was below last year's level. When coming to the net sales, we were in line of the last year, except of course for the Swedish dose dispensing Sweden, which actually explains mostly the lower numbers in net sales. When coming to the adjusted EBIT level, we, as stated before as well, we made changes in reporting of JV net result. Now it's reported after financial items and before taxes in our profit and loss account.
The reason was that we made it more transparent and simple to communicate on our own performance, which we are guiding in adjusted EBIT level. Also to highlight that we are measuring our joint venture's performance in the longer term and through the share value, which we obviously want to bring shareholder value to our shareholders as well, on the longer term. Let's go more closely to the EBIT on next page. When seeing the EBIT level, profitability was in line our expectation. Foreign exchange rates doesn't impact that much on our EBIT level and the reason is of course that mostly our sales, net sales and also the cost base in Sweden is kind of measured in the Swedish crowns. However, the biggest impact came from the dose Sweden, as we announced already earlier.
How to maintain the good profitability level and expected profitability level in this inflationary environment. Price increases have had some effect there. Of course the good cost control and better efficiency in our operations than before have been affecting positively on our profitability. As also Katarina mentioned before, hoarding of medicines after the start of Ukraine War in first quarter in 2022 also impacted to the numbers, what we have on that period there. When going to the high inflationary environment, especially the transportation costs in Sweden were kind of higher level than what we expected. Despite of that, our operating expenses was at last year's level due to good cost control overall in the company.
When seeing the profit of the, for the period, net results, it was declining EUR 1 million from the previous year and was also in line of our expectation. The loss of joint venture, Swedish Pharmacy Holding AB, was burdening the result and also the rising interest rates. The result from JV was -EUR 0.5 million . Compared to the last quarter of 2022, it was much smaller. Last year it was on last quarter, EUR 2.0 million . Net financial expenses increased mainly due to higher interest rates and some effect came also from foreign exchange rates.
I think one of the positive things was that during this quarter we didn't have any adjusting item. Basically when the operations are kind of starting to run smoothly and we don't need to do any adjustments, so of course it kind of supports net profit and earning per share as well. If seeing the cash flow, cash flow was highly negative, but on expected level also in the Q1. Our cash position was higher than normally at the end of last year, and of course it has when this comes to the normal level, so impact for the quarterly figures. It comes from the high fluctuation of the net working capital, which is actually typical in our industry.
Having said that, we can say that the change in the net working capital for the quarter was minus EUR 38 million, while cash position declined to with about EUR 43 million. Basically all the changes are coming from the net changes of the net working capital. Having said that, I also have to say that our cash position is very, on very good level and liquidity is in a good level. It was EUR 119 million, our cash position, at the end of the quarter. Then when seeing net debt, it was also on the last year's level. Just to notify that Q1 2022 cash and trade receivables included also discontinued the operation.
On cash there were roughly EUR 38 million from discontinued the operation and sold trade receivables, EUR 77 million in that one. Basically when seeing the gearing and our loans and so on, so everything is kind of on good level and basically on the same level that what we really had last year. Otherwise also balance sheet remains strong and basically we are in good position if we kind of need to use our balance sheet somewhere, for example, in the investment and so on. Equity raise is in good level and better level than what it was in the last year.
Also the assets or gearing is in the very good level compared to what it has been previously, especially before the joint venture merger, what we did last year. A little bit about Swedish Pharmacy Holding, meaning Kronans Apotek, our joint venture. Net sales was EUR 280 million, which was slightly below last year. As said also, last year the same hoarding of medicine affected here as well on the last year. adjusted EBIT was about zero, and compared to the -EUR 2.8 million on the last quarter of last year. We see the improvement in the profitability, and it shows that we are going in the right direction in synergies and integration as well.
The adjusted EBIT was a result of the lower earnings from the pharmacy sales, as said, as well as increasing costs mainly connected to the pharmacy stuff. Basically inflation in the salaries are affecting there as well. As said, we are using the equity method to book the results of JV to our books. We booked a loss of EUR 0.5 million compared to -EUR 2 million in Q4 2022. As stated, we are committed to the long-term ownerships, and we see that on long term this will bring value to our shareholders. Shortly about our outlook for 2022. As stated also before, it remains on the same level what we had before.
Of course, there is a technical change in the wording because now we are reporting our joint venture on different place, but actually that was only taking out from the outlook that it's not excluded from our reporting in that sense, which we've all before as well. As said, our outlook is that we are expecting our adjusted EBIT to be on the same level as it was in 2022, and the comparable number there was EUR 19.7 million. That's all from my part, and please, Katarina, continue.
Thank you, Timo. Now you should know most of the things about the numbers, and I would like to continue with a few words on the sustainability and also an update on our key priorities before we open up for your questions. Sustainability is embedded in everything that we do, like we have communicated before. We have integrated our sustainability program in our group strategy and have also set ambitious long-term targets. We are committed to reach carbon neutrality by 2030 and by 2025 in our own operations. As a result of our long-term work, we have decreased emissions in our own operations already by 70% compared with the base year 2019. Another important KPI for us is to measure the pharmaceutical delivery accuracy, which is an indicator for picking accuracy of the ordered pharmaceuticals.
We have committed to deliver pharmaceuticals to pharmacies and hospitals pharmacies within 24 hours of ordering. I'm really, really pleased with 99.6% that we have achieved in Finland, which is above our target of 98%. In our efforts to reach carbon neutrality and our targets for the use of renewable energy and improving recycling rate, we have ongoing improvement projects at our sites related to, for instance, LED lighting, waste handling, heat recovery, and also cooling systems. In addition to improving our operations, we have started the renewal of our sustainability program and to prepare for the upcoming requirements in the EU directives on sustainability reporting. To comply with these requirements, we completed a gap analysis to identify development areas in our actions and reporting. During March, we also completed a double materiality assessment among our stakeholders. We received more than 500 responses from the...
across the various stakeholder groups. I'm really happy about that we have that many answers. Thank you for all of you who have answered. The results of the survey provided us with very valuable input and feedback, will support us in identifying the material sustainability topics and building our future sustainability roadmap. We have also received questions on our strategy. We have talked about this for quite a while. We have earlier said that we are working on it. In the meanwhile, our strategic direction is clear. We focus on our core business, profitability improvement, and also and our societal role as an infrastructure company is securing availability of pharmaceuticals. We will continue the strategy work with additional scenario work on our portfolio of value added smaller businesses.
In summary, we want to be the preferred business partner in the Nordics. This means for us that we offer high quality and advanced distribution of pharmaceuticals and a wide assortment of health and wellbeing products to our customers. It also means that we provide advisory services to pharmaceutical companies and pharmacies. To ensure sustainability growth and shareholder value, we are further developing our commercial and supply chain excellence while ensuring profitability, efficiency, and collaborative culture. We will also support the value creation in our joint venture company, Kronans Apotek, and gradually look for selection for selective merger and acquisition targets to support our growth. When looking a bit closer on our key priorities for this year, I want also to provide some examples of the initiatives that are ongoing.
During the first quarter, we have continued to strengthen our commercial operating model to create better customer understanding, improve our customer journey, and generate customer value. We also resumed our work with the personalization. This is to improve the customer centricity and experience by developing data-driven business, customer segmentation models, and by improving the offering and standardizing our services. In our operations and supply chain, we continued with efficiency improvements through simplified processes and improved demand planning. Another key action was the implementation of our information security, especially our monitoring capabilities and the security of our digital services environment. Since the beginning of this year, we have established a new performance management process that will focus on continuous dialogue and employee development. We also accelerated our commercial capability training and managerial change management training.
To conclude this presentation, I would also like to summarize the 1st quarter as follows. Our markets in Finland and Sweden were growing. Our net sales measured in constant currency were at last year's level. The adjusted EBIT was in line with our expectations. Lastly, our strategic direction is clear, and we will continue to focus on our long-term transformation. With this, we are ready now to go to the presentation and open up for your questions.
Great. Thank you both Katarina and Timo for your presentations. We have a number of questions that we have received through chat, they are related of course to Oriola and also the joint venture, Kronans Apotek. I was thinking that we would start with the JV questions and then continue with the Oriola questions. The first one on the JV is that on what basis are figures from JV company reported, IFRS or local Swedish GAAP?
They are on IFRS.
Okay. How is adjusted EBIT calculated? How and by whom are on-time costs in JV calculated, and how are synergy figures calculated? Both joint companies were profitable before merger with about EUR 25 million operating profit. Why is that now zero? That was a long question.
Yeah. Yeah. Of course, there is kind of integration costs that are burdening and also that when you are integrating kind of two quite sizable companies, it has an effect to the numbers. adjusted EBIT is calculated that we are taking out the integration costs, what we have been having there and so on. Synergies are kind of synergies that are generated from the starting of the company. Basically what we have stated earlier is that we are expecting in 2025 roughly EUR 25 million yearly level synergies from that integration, basically that's calculated how we are targeting towards that one.
Okay. Thank you.
Yeah.
There is a follow-up on this. How much was operating profit of JV and how much were depreciations of the company?
Basically, if we are talking of operating profit as a EBITDA, we are not giving out that one. The simple reason is that when we are in IFRS world, basically the rental costs of those roughly 500 pharmacies are handled as a depreciation. That's why we are kind of giving out the EBITA, which actually reflects the kind of operative results when we are in IFRS world. Having said that, basically our depreciations below that EBITA was roughly EUR 2.2 million.
Okay. There is a question on the profitability. How could you describe the profitability of JV? In website of JV it is said EBITDA-
Mm
... Of JV is SEK 600 million.
Mm.
Is this still valid number?
We can't comment that one because obviously so we have to take into account those, it's differently calculated that when we are kind of, calculating in IFRS, so EBITA is one that we are following. Of course, when seeing the profitability, so it is burdened by the heavy integration what they are having currently.
All right. There are a couple of more questions on this topic. How has JV's market share developed during Q1? What is the main reason for soft performance of JV? The second part of this question you already a little bit answered, but do you want to comment on the market share?
Mostly the questions of the JV and market share should be kind of asked from the management of the JV itself, we are not in that sense commenting that one. Of course we are following closely the market shares as well and it seems that there is a bit fluctuation in Sweden. Again, having said that, when we are kind of combining two companies in the integration, you have to be a little bit patient to see what is happening.
Great. Then the last question on JV. Net debt in JV has decreased in Q1 about EUR 12 million.
Mm.
Is this corresponding EBITDA of Q1 of JV?
Said, we are not commenting the EBIT, EBITDA in that sense. Basically net debt has been going down and obviously it is a good thing.
Good. Now we continue with the questions relating to Oriola, and we start with questions on dose business. The dose dispensing market share in Sweden dropped from about 30% to 29% in 2022 due to lost public tenders, which were not mentioned in the written annual review, but mentioned briefly in the AGM annual review presentation. Could you please give some color on this? Why were these contracts lost and to whom? How do you see this business segment going forward?
Mm.
Katarina?
Yes. In the dose dispensing business, especially in Sweden, we have a tendering situation. That means that there is like regional tenders coming up from time to time. We are taking part of these tenders and together with two other players in the Swedish markets. Unfortunately, we are then in the situation where we have left, lost some tenders. That's what we can now see in the numbers. We have also now won a tender. Due to like quite long lead times in this market, we will see that number of patients growing again in the later stage during the period. The dose dispensing business will have its lowest share as we see it now in the quarter two.
We are mitigating some of these losses by the new segment that we have mentioned, and that is going into the public side of the dose dispensing business in Sweden.
Good. Thank you. There is a question, still on dose dispensing. Do you consider dose dispensing as a core business, or could you consider divesting/discontinuing that if you are unable to reach decent profitability?
The core business for Oriola is, as we have communicated, like the distribution and assortment business, and then we also have this expert service business and so on, and dose dispensing around it. Dose dispensing business is something that we are here to develop. There is no decisions that we should like divest it or shouldn't continue to develop it.
Great. We continue with other questions on Oriola's Q1. What kind of costs are included in financial items as income and as costs? Is the level in Q1 to be continued same for the rest of the year? Timo?
Of course, mostly the financial costs, there is interest rates. What I see that if nothing kind of big happens in the market, they are actually quite on the level what they normally or now in this current situation are. There is some FX rate kind of changes affecting, but smaller part and of course with the FX rates, we really know where we are going. I don't see that as a kind of major thing for our financial items. On the income side, there is kind of some kind of interest what we are getting from our customers and so on, but that's kind of smaller thing compared to interest rates what we are paying out.
Okay. Thank you. We continue on the cost side. How large impact do you expect from one-time salary compensations, and when do these occur in 2023?
They are occurring now during the first month of the summer. Basically, the impact, it's not that severe for our profitability. Of course, it's included our estimate as well.
All right. What were the main drivers behind lower operating expenses, and how well are you able to maintain these cost savings?
If starting, of course, operative efficiency has increased in our operations, that's one thing. It has kind of multiple effects of course, for example, when going to transportation and so on, especially in distribution business. If the operation is running smoothly, you have kind of less extra transport and that kind of thing. Basically, that's where it's coming from. Then again, also kind of tight cost control everywhere in the group.
Yeah.
That's vital for us as well.
Okay. Good. We have, at the moment, two more questions that we have received, but for everyone online, I would like to remind you that keep on sending those questions to us. We are happy to take them. Has weak SEK increased material costs in brackets purchases in Sweden?
Mainly, we are purchasing in Swedish crowns, so that's obviously a good thing. It's also one thing why the effect to our profitability is not that kind of big in the group. I think more the question is that basically if our kind of customers are importing things from Eurozone or whatever they are, they're taking it. It's kind of inflammatory thing normally in the society, and that might affect to the consumer confidence and that kind of things, and it might affect to our assortment business, which is non-medical business and so on. It's kind of more like general effect in the inflammatory environment as itself and not kind of specific for us.
Mm.
Yeah.
Okay. Follow up on this one. Has Oriola been able to increase also revenues because of that, or has weak SEK had only negative impact?
At least when seeing from the numbers with what we are kind of reporting, it is a negative kind of impact. Having said that, the negative impact is coming to reported numbers in that sense. Basically, we are not losing kind of money because of the exchange rate that we had, for example, take Swedish crown and the change it to the euros and so on. Kind of in normal business, we don't see that effect that much.
I can add one thing in this one, and that's like if I look for overall how we work with the margins...
Mm
... And with the contracts, we are always looking at possibility to make better deals or better contracts with our suppliers and also with our customers in these cases. That's our normally ongoing work in this environment.
Good. A good bridge to the next question. You mentioned that one focus area during Q1 was price increases.
Mm.
How this has proceeded, and do you need further increases going forward in order to tackle the inflation?
I can say it like this. If I start, you can continue Timo.
Yeah. Yeah.
Since I started the other one. Like I said, we are always working on seeing the possibility to increase the prices in a relevant way, to make, like, both market competition level and so on, and being attractive to our customers. That's our job. Also working with, like, indexes and all these kind of things is something that we do on a daily basis. Especially when we are in the situation as we are right now, it's really important to know what's happened around us and what we do. I will say ongoing business, and I don't expect that this is something that we will not continue to work with for a long, long time.
Good. Thank you.
No. Perfect answer. Yeah.
There are a few more. How is it possible to have so much interest expenses although net debt is about zero? Timo.
Well, when seeing, of course we had to see as there was on the net debt slide, we have quite a lot of debt still. Then we are also kind of selling our sales receivables and at the other way around. The cash position or liquidity is quite good, which obviously we need in this kind of business. Having said that, unfortunately it is so that we are not getting same kind of interest rates from the cash position what we are having that, what we have to pay from our loans.
All right.
Mm.
A final question to Katarina.
Mm.
Could you indicate the size of the 51 contracts in distribution?
We're not commenting each contract like that, so unfortunately I can't. You can say that we are always working with new contracts and finding new contracts and suppliers. Like I said, these contracts will start to show us in the numbers in the end of the year. Since we are not, like, commenting on contract level, so unfortunately not.
All right. Thank you for the good answers. Thank you everyone online for all the good questions. If there are any follow-ups after the webcast, please don't hesitate to reach out to us. We are now ready to conclude our webcast to remind you our next report, the half-year report, is going to be published on the 21st of July. Let's meet then at the latest again. Thank you.
Thank you.
Thank you.
Mickey Mouse.
Yep. Recording.
Hello to all Inderes TV listeners and viewers. We are here today talking about Oriola's Q1 with CEO Katrine Gabrielson. Welcome.
Thank you.
Traditional question to start, how did the Q1 go in your view?
In my view, I think we had a solid result. Of course, it's like there has been, like, some headwind around us and like in an operation environment has been a little bit uncertain, but a solid result.
Yep.
Mm.
How about the sales and development you posted organically?
Mm
... Flattish-
Mm
... Sales, but you said that the markets are growing actually quite well, so why are you...
Mm
... Growing less than the market?
If you look at the net sales, you can say that we are, like, on a flat level if you look in the constant currency.
Mm.
We are affected of course, like, by inflation and also by the dose dispensing business where we can see that we have lost some customers, to some extent, and that's of course affecting us.
Yeah.
Mm.
Yeah. When would you expect kind of that effect to fade and then you to-
Mm
... Reach closer to the market growth rate?
If you look in Swedish in the pharmaceutical business, we have won some contracts now during the first quarter of the year and also in the end of last year. There is long contract lead times.
Mm
... Both in dose dispensing but also in the distribution side, so it will take some time, but in second half of this year, I will say that we will start to see them, affecting us again.
Yeah
... In the positive side.
Yeah. Good. You obviously are facing also some headwinds from the weaker Swedish krona.
Mm-hmm.
still, like
Mm. Mm
Last year already.
Mm. Mm
Can you just remind how's that impacting your numbers?
Mm.
Is it mostly a translation impact on the sales, or is there some impact in the earnings then and margins?
It's mostly a translation impact, absolutely. We can also see that some parts of the distribution side, like in the.
Mm
... It's affecting because that's also bought in, in euros.
Mm
... Then translated to Swedish krona.
Yeah.
Of course, we get lower volumes.
Yeah.
Mm.
Yeah. Okay. You did a technical change now regarding the treatment of the associate company.
Mm-hmm
... You have in the Swedish pharmacies.
Mm.
Can you just explain what was happening there, and why did you make the change?
We did a change that before this year or in quarter one, we did a change to report it, the net sales, net whatever it is, under the EBIT line. Now. Before we reported above.
Mm.
The change is to make it clearer for every one of you what is really something that Oriola can affect in as of our own sides and what is done in the joint venture figures.
Yeah.
It's more about the clearance.
Mm.
You can say that the guidance is still there, and we haven't touched that.
Yeah.
It's more like make it clear for everyone.
Yeah, yeah.
Mm.
I think that is helpful and clear for all.
That's good.
You also had quite a lot of changes in your company's board now.
Mm
... In the AGM in the spring. Can you share anything about what the new board is kind of hoping to do with them?
Mm
With the management obviously or with the company?
Yeah. I would say that we have started well, in my opinion at least. Of course, the board might have another opinion. I don't feel so. I think we started on well. We have had a lot of good discussions and a lot of like, how should I say, findings together. We have, like I said before here, strategic targets and strategic goals. We are working with the same parts that we have worked with before. I'm really enthusiastic to see, like, how we go forward with this.
Yeah.
If I look for the strategic direction, of course, it's the distribution and assortment business. It's also to continue with expert services and also now then go and seek for more merger and acquisitions possibilities and so on.
Yeah.
Mm.
Is there any timeline that we could expect to hear some more regarding your strategy or anything like that?
That was in fact a question that we didn't got before.
Mm.
... That's good that you've brought it up. We will work on it, and since we have the strategic direction already there, that's also what the board thinks that that's something we should deliver, and then we will continue to do strategic scenario planning, and in due course we will come back to that, but.
Yeah. Let's wait for that.
Let's see. Yes.
Yeah.
Mm.
Regarding the outlook, you already mentioned you did reiterate the guidance of flat.
Yes
... Flat EBIT, any kind of meaningful changes in there in the drivers or is everything?
It's-
... Like they were in Q4 report?
It's very much the same as we had in Q4 report and you can see, like, yes, this, it's the inflationary like surroundings that we have, of course. We are affected about the dose business and of course then. We still don't have the same guidance as we had last year.
Yeah.
Mm.
Yeah.
Mm.
Yeah, you specifically mentioned the dose dispensing.
Mm
... Business weakness there, which.
Exactly
... We saw also in the Q1 figures.
Mm.
When should we expect that one to start turning towards the better?
Since I said about the long lead times.
Yeah
... It's so that, we will have like, most likely a little bit lower figures also in quarter 2, but then that will be the lowest point and then we will start to see due to this private care that we are then focusing on right now.
Yeah.
Mm-hmm.
Okay, good. Let's see.
Mm
The year continues.
Yeah.
Thank you, Catherine, for this.
Thank you.
Thank you. Do you want to take again the associate question?
Maybe we can take the associate question because that was.
Yeah.
I never remember what that stupid thing is. Sorry about the language.
Net profit, I guess.
Net profit, exactly. Yeah. I should just find where it is.
Let's take the one question.
I think that can be.
The rest of the answer was really good.
Yes. Yes.
Good. Where on earth have you written that one? On board changes, guidance. It should be here somewhere.
Before the guidance and after the board, I guess.
Yeah. Most likely. No, that should be the numbers.
Should be.
I have it in the old one, so I have it here. That's...
Yeah.
It should be somewhere here also.
Yeah.
There is it.
Yeah.
Okay. Are you ready?
Yeah.
Yeah. Good.
Yeah.
Okay. Recording. Regarding the associate company reporting, you made a change now in the Q1.
Mm.
Can you explain what was happening there, and why did you do the change?
Yes. This is right. Starting from Q1, we are reporting the Oriola's share of the net results of Swedish Pharmacy Holding under the EBIT line. Before we did it above the EBIT line. The main reason for that is that we'll make it more clear for all of you about what are we affecting and what is done in the joint venture in the Swedish Pharmacy Holding books.
Yeah. I think that's, it's good and helpful.
Thank you.
Thank you. Thank you.
Better?
Yeah.
I don't know why that is so hard. Yep. Yep.
I think it's because.
It's so technical. Yeah. Yeah.
... But it's the net result of that.
Yes, exactly.
Yeah.
Exactly.
A little bit too detailed.
It's. Yeah.
That's also why it's good that you do it like this.
Yeah.
Yeah.
It's.
Great.
Those are always difficult for the analyst as well since you need to kind of adjust the taxes and everything.
Yeah. It's.
If it's a meaningful number. You have to stare at.
Let's see. Maybe I should take this off.
Share of the profit.
Otherwise we
Look at the value.
Have a message.
That's true. Yeah. Or longer term. Yeah. Yeah. All right. Thanks.
Great. Thank you.
I think it's also one of the reason why we do the change because it's like all right.
Great. Thank you.
Thank you. Thank you again.
Kiitos.