Orifarm Group A/S

Development in activities and financesIn 2023, Orifarm Group achieved new record-breaking levels in key areas like:

• Highest revenue ever in company history
• Highest level of operating profit ever in company history excluding non-recurring items

These new levels have been reached despite sourcing/supply constraints, inflation and increased price competition throughout 2023. Especially under these circumstances, management is pleased with the result being the seventh consecutive year where both top-line and profit grew through a dedicated focus on organic growth in mature markets and optimization of internal processes and procedures in our business areas.

The operating profit includes non-recurring cost of EUR 28.0 million driven by restructuring and integration costs.

In October 2023, Orifarm and its owner, Habico, announced the process to search for a potential external minority investor. The purpose is to strengthen Orifarm’s financial flexibility. We expect to conclude the search during 2024.




Particular risks
Operating conditions
To a significant extent, 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 Pharma Trade, it is Orifarm Group’s policy to avoid infringing trademark rights, and Orifarm Group is not currently involved in any material pending litigation of this kind.

For the business area Consumer 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. 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.

Orifarm Group is from time to time involved in legal proceedings. The outcome of these may affect Orifarm Group's earnings. It is Management's assessment that these legal proceedings will not lead to material losses for the Group.


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 interest caps in place, which hedge against further increases in market rates. With current market rates, further increases 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.