Oriola-KD to develop online operations and new services
Oriola-KD is focusing on the profitable markets of Sweden, Finland and the Baltic countries, says Eero Hautaniemi, President and CEO of Oriola-KD.
Oriola-KD today is a very different company from a year ago. A significant change was the sale of its unprofitable Russian businesses late last year.
“Three quarters of our net sales now originate in Sweden, and over a half of our operating profit comes from Swedish pharmacies. The acquisition of the Medstop pharmacy chain in 2013 increased our market share in the Swedish pharmacy sector to 19 per cent, while our share in the pharmaceutical wholesale business in Sweden is about 39 per cent,” Hautaniemi says. In Finland, Oriola-KD’s share in the pharmaceutical wholesale business is 46 per cent.
“We analysed the growth potential of the Russian economy in the near future as well as our cash flow opportunities, and as a result we decided to sell our Russian operations in December 2014,” says Eero Hautaniemi, President and CEO of Oriola-KD.
Boosting the online operations
According to the updated strategy, Oriola-KD wants to be the leading pharmaceutical retail and wholesale operator in Northern Europe.
“We will now focus on developing our current profitable businesses in Finland, Sweden and the Baltic countries. We will find ways to further strengthen our position by developing the online shops and new service concepts,” Hautaniemi says.
In Finland, Oriolashop.fi, an online shop for health care professionals, opened last year, and Orion’s online shop was merged with it in September 2014. In the Baltic countries, online pharmacy internetaptieka.lv was opened, and Sweden will get its own online pharmacy this year that according to Hautaniemi will also sell prescription medicines in the future.
New health care services
In Sweden, pharmaceutical deliveries to hospitals and veterinary clinics as well as home deliveries of speciality pharmaceuticals used to be the monopoly of the state-owned pharmacy system. Now there are lots of new business opportunities in these sectors.
In Finland, Oriola-KD serves pharmaceutical companies, pharmacies and veterinarians by developing its digital services and tailoring them to meet customer needs. Speciality pharmaceuticals in particular require an unbroken temperature-controlled chain, real-time monitoring of products and comprehensive services.. Oriola-KD has substantially invested in all these during the last few years.
“Operating in a number of markets is our strength. This way we learn what really works and can apply this knowhow across the operating countries,” Eero Hautaniemi says.
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