Hbs Capital Aps (Koncern)

Development in activities and finances
Orifarm Group
Overall, Orifarm Group achieved new record-breaking results in key areas like:
• Highest revenue ever in company history
• Highest number of units sold ever in company history
• Highest level of earnings ever in company history excluding non-recurring items

Habico Invest
Result arriving from investments ended with a decrease compared to 2021.


Group
The results have been reached despite sourcing/supply constraints, inflation and increased price competition throughout 2022. Especially under these circumstances, management is pleased with the result being the sixth consecutive year where both top-line and profit grew through a dedicated focus on new market entries, organic growth in mature markets, growth through the acquisition of a portfolio of pharmaceuticals from Takeda, and optimization of internal processes and procedures in both Health Access and Healthcare.

The operating profit includes non-recurring cost of MEUR 24.9 driven by restructuring and integration costs related thereto.

Particular risks
Operating conditions
To a significant extent, consolidated earnings depend on legislative measures that affect the pricing of pharmaceuticals in both the purchase and the sales countries. Earnings are also affected by measures in the sales countries which are intended to limit the consumption of pharmaceuticals.

For the business area Orifarm Health Access, it is Orifarm Group’s policy to avoid infringing trademark rights, and Orifarm Group is not currently involved in any major pending litigation of this kind.

For the business area Orifarm Healthcare, Orifarm Group’s policy states that infringing patent rights should be avoided. However, patent holders have a commercial interest in defending market monopolies and manufactures of generic products have an interest in challenging the market at patent expiry. This makes disputes and litigation difficult to avoid. Orifarm Group is from time to time involved in pending legal proceedings. The outcome of these may affect Orifarm Group's earnings. Following the acquisition of a range of pharmaceuticals from Takeda, including a portfolio of patents and trademarks, Orifarm shall take the necessary measures to protect these from 3rd party infringements.












Financial matters
Orifarm Group is exposed to fluctuations in foreign exchange rates and interest rate levels. These risks are mitigated in accordance with the Group’s policy. Exchange rate risks are primarily related to the currencies SEK, NOK, CZK, PLN, and GBP.

Orifarm Group has an interest cap in place at strike 2%, which hedges against further increases in market rates. With current market rates above 2%, a further increase will only affect Orifarm Group minimally.

Orifarm Group’s financial risks, including its cash management and extension of credits, are managed at a corporate level to ensure a balanced risk profile.





Investments in Habico Invest is subject to fluctuations on the financial markets.