12/03/2018
DGAP-News: SHOP APOTHEKE EUROPE N.V. / Key word(s): Final Results/Forecast NOT FOR RELEASE OT DISTRIBUTION IN THE USA, CANADA, AUSTRALIA OR JAPAN. SHOP APOTHEKE EUROPE increases revenues by 60% in 2017; growth projected to further accelerate in 2018 with positive Group-level EBITDA expected.
Venlo/Cologne, March 12, 2018. -- SHOP APOTHEKE EUROPE N.V., Continental Europe's leading online pharmacy, has reached its ambitious growth targets for the 2017 fiscal year (January 1 - December 31, 2017). Boosted by the takeover of Europa Apotheek in November 2017, SHOP APOTHEKE EUROPE has further accelerated its growth rate substantially with Group revenues rising 60% to EUR 284.0 m. For 2018 management expects the pace of growth to further speed up to a rate of 87% to 97% as well as a positive Group-level EBITDA* of EUR 0 to 2 m. The company's dynamic growth is due to an increase in the number of active customers across Europe from 1.8 m at the end of 2016 to approximately 2.7 m at the end of 2017 and the related rise in the volume of orders. The number of orders climbed from 4.0 m to 5.7 m during the period under review, with 76% of those orders coming from existing customers, up from an already high level of 73% in 2016. The return rate stayed at a minimal level of below 1% of orders like in 2016. The number of site visits increased from 41.8 m during the 2016 fiscal year to 71.5 m in 2017. Group revenues rose by 60% during the 2017 fiscal year to EUR 284.0 m from EUR 177.4 m a year earlier. This increase in revenues is due to both organic growth and to the fourth-quarter takeover of Europa Apotheek, which has been consolidated as of November 8, 2017, accounting for EUR 25.1 m in revenues. Gross earnings rose by 59% from EUR 36.3 m to EUR 57.6 m during the 2017 fiscal year, leading to a gross margin of 20.3% compared to 20.5% in 2016. The slight decrease in the gross margin is mainly due to a higher proportion of prescription medications sold as a result of the takeover of Europa Apotheek; these usually have a lower gross margin than other products in the portfolio. Increases in efficiency and economies of scale contributed to a substantially improved administrative expenses ratio. Total administrative costs for 2017 were EUR 13.4 m compared to EUR 9.1 m in 2016. This figure includes one-time costs of EUR 3.6 m related to the takeover of Europa Apotheek and the subsequent increase in capital in order to process the share swap agreed on to undertake the acquisition. Hence, adjusted administrative expenses ratio including depreciations stood at 3.5% in proportion to revenues (previous year: 4.2%). Revenues for SHOP APOTHEKE EUROPE'S profitable core segment "Germany" rose by 44% to EUR 209.5 m (previous year: EUR 145.5 m). During the same timeframe, the overall German online pharmacy market grew by just 11.8% according to a survey conducted by Germany's Federal Association for e-commerce and mail order businesses (Bundesverband SHOP APOTHEKE EUROPE'S international markets - which include Austria, France, Belgium, the Netherlands, Spain and Italy - have been once again the company's most dynamic driver of growth, with the volume of business increasing by more than 143%. As a result, revenues for the "International" segment rose to EUR 73.7 m (previous year: EUR 30.4 m) with the segment's gross margin growing significantly during the period under review, up 3 percentage points to 21.4% from 18.4% a year earlier. Due to the high cost of new customer acquisition, 2017 segment EBITDA** was EUR -6.6 m, down EUR 1.9 m compared to EUR -4.7 m the previous year (respectively EUR -4.0 m when adjusted for one-time costs related to the acquisition of Farmaline in 2016). Relative to revenues, the segment's EBITDA margin improved to -8.9% in the period under review compared to -15.6% unadjusted, or -13.0% adjusted respectively in 2016. The segment "Germany Services" posted revenues of EUR 0.7 m (previous year: EUR 2.5 m) excluding sales revenues from intra-Group services that were eliminated as part of the consolidation. Since it contributes only a small share of overall revenues, the segment will be integrated into the "Germany" segment in the future. At 88.4%, the gross margin was at a similarly high level as in 2016 when it stood at 89.7%. Segment EBITDA** was EUR -0.1 m compared to EUR 1.0 m a year earlier. Dr. Ulrich Wandel, CFO of SHOP APOTHEKE EUROPE, comments on the company's development during the 2017 fiscal year: "We have achieved our ambitious growth targets with a revenue increase of 60%. Our accelerated growth course is driven by strong operational results as well as key investment decisions. The integration of Europa Apotheek has further strengthened our growth trajectory. In 2018 we'll keep our foot on the accelerator. We want to achieve an attractive combination of fast growth and profitability during the current fiscal year." For the 2018 fiscal year, SHOP APOTHEKE EUROPE's Management Board forecasts a revenue increase between 87% and 97% to a range of EUR 530 to 560 m, driven primarily by strong international growth and the consolidation of Europa Apotheek. The gross margin is expected to be lower than during the 2017 fiscal year due to the greater proportion of orders for prescription medications. Despite the smaller gross margin, the contribution margin per order will be bigger due to the increase in the size of the average shopping basket. Combined with further improvements in efficiency, effects of scale and further automation, the Management Board forecasts a positive Group-level EBITDA* of EUR 0 to 2 m for the 2018 fiscal year. Brand strategy will be another focus during the coming year. As a result of the acquisitions undertaken in the last two years, SHOP APOTHEKE EUROPE is currently operating its business using several different brand names, which will for the most part be united under a common brand in the medium term. SHOP APOTHEKE EUROPE also plans to continue playing an active role in the consolidation of the online pharmacy market. Due to both potential future acquisitions and a generally greater need for working capital as a result of increased business volume, the Management Board is evaluating different financing models options that allow the company to respond flexibly and quickly should interesting opportunities arise. The investment volume for the current fiscal year is expected to be in the low double-digit million range. Investments will focus on automation and expanding storage capacity, the parallel optimization of our software systems and the standardisation of payment methods across the Group in order to standardise the checkout process for customer orders and further develop our customer relations management across all country webshops. 2018 FINANCIAL CALENDAR
CONSOLIDATED STATEMENT OF PROFIT AND LOSS.
CONSOLIDATED SEGMENT FINANCIALS FOR 2016.
ABOUT SHOP APOTHEKE EUROPE. SHOP APOTHEKE EUROPE is the leading and fastest growing online pharmacy in Continental Europe. With the acquisition of Europa Apotheek Venlo in November 2017, SHOP APOTHEKE EUROPE significantly extended its European market leadership with an expanded product range for the whole family in the areas of OTC, beauty and care products as well as prescription drugs SHOP APOTHEKE EUROPE already operates online pharmacies in Germany, Austria, France, Belgium, Italy, Spain and the Netherlands. In Germany, the TÜV-certified shop-apotheke.com is the market leader in terms of traffic. SHOP APOTHEKE EUROPE delivers a broad range of more than 100,000 original products to about 2.7 million active customers quickly and at attractive prices. In addition, SHOP APOTHEKE EUROPE provides comprehensive and consistent pharmaceutical services. SHOP APOTHEKE EUROPE N.V. has been listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard) since 13 October 2016.
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12.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | SHOP APOTHEKE EUROPE N.V. |
Dirk Hartogweg 14 | |
5928 LV Venlo | |
Netherlands | |
Phone: | 0800 - 200 800 300 |
Fax: | 0800 - 90 70 90 20 |
E-mail: | ulrich.wandel@shop-apotheke.com |
Internet: | www.shop-apotheke-europe.com |
ISIN: | NL0012044747 |
WKN: | A2AR94 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |