SHOP APOTHEKE EUROPE: Sales Growth 15% in H1. All Set for E-Prescriptions.

• Sales growth +7.6% in Q2, +15.0% in H1.
• Q2 DACH sales +4.1% (H1 +9.7%), International sales +23.2% (H1 +43.5%).
• Positive adjusted EBITDA margin of +0.5% in Q2 and +1.3% in H1.
• Q2 figures impacted by lower than aimed-for logistics capacity.
• Underlying customer demand for SHOP APOTHEKE EUROPE remains strong across all seven countries including in Germany.
• Number of active customers year-over-year up 1.6 million to 7.1 million.
• Financial guidance for FY 2021 updated past 22 July: FY sales growth 10 - 15% and adjusted EBITDA around break-even.

Sevenum, the Netherlands, 5 August 2021. During the second quarter, SHOP APOTHEKE EUROPE's sales grew by 7.6%, but experienced a temporary slowdown in growth due to constraints in order processing capacity. These were mainly related to a tight labour market and plans are in place to address this challenge as soon as possible. During the first six months of 2021, the company increased its Group-level revenues by 15.0% to EUR 534 million compared to EUR 465 million in H1 last year. The number of active customers rose by nearly 30% to 7.1 million, with the growth being entirely organic.

SHOP APOTHEKE EUROPE CFO Jasper Eenhorst: "We have started taking action to resolve the temporary capacity constraints in logistics. The situation has stabilised and is already improving. Our long-term growth prospects remain fully intact."

With a growth rate of 30.5% year-over-year, gross profit at Group level increased significantly faster than sales, from EUR 104.5 million during the first six months of 2020 to EUR 136.4 million this year. Compared to H1 2020, the consolidated gross profit margin rose by 3.0 pp from 22.5% to 25.5% for the first half of the year. In Q2, the consolidated gross margin was at 25.4% compared to 23.5% the previous year. Underlying drivers were a different product and country mix.

Adjusted selling and distribution (S&D) expenses as percentage of H1 sales stood at 21.2%, an increase of 3.7 pp year-over-year. In Q2, the consolidated S&D ratio was at 21.7% compared to last year's 18.1%. Marketing expenses had been lower last year due to high demand related to Europe's Covid-19 outbreak and this year's performance was impacted by lower-than-anticipated logistics capacity.

Administrative costs amounted to EUR 20.8 million in H1 (2020: EUR 13.9 million) and included one-off and employee stock option expenses of EUR 4.5 million (2020: EUR 2.0 million). Adjusted administrative costs as percentage of sales were 3.0% in H1 (Q2: 3.2%), 0.4 pp higher than last year's 2.6% (in Q2 2020: 2.7%). SHOP APOTHEKE EUROPE's adjusted EBITDA stood at EUR 6.9 million (margin 1.3%) in H1 2021. Last year, it was EUR 11.3 million. In Q2, the adjusted EBITDA was EUR 1.2 million (margin 0.5%). Last year, it was EUR 6.3 million. This quarter was SHOP APOTHEKE EUROPE's sixth consecutive quarter of a positive adjusted EBITDA.

With depreciation expenses of EUR 11.7 million (2020: EUR 6.8 million), EBIT was EUR -10.0 million this H1 (H1 2020: EUR 2.5 million). The higher depreciation is largely related to investments in the new logistics facility in Sevenum, the Netherlands, the IFRS16 lease accounting treatment and IT product development. Net finance costs decreased by EUR 0.7 million to EUR -6.9 million as a result of a lower interest on the new versus the former convertible bonds. The net result of EUR -17.0 million compared to EUR -5.1 million last year.

Operating cash flow was a positive EUR 25.1 million in H1 this year versus EUR 15.9 million last year. The improvement was driven by favourable working capital movements.

Slower growth in DACH segment; gross margin improved in both segments.

During the first six months of 2021, DACH - SHOP APOTHEKE EUROPE's largest segment by revenues, covering business activities in Germany, Austria and Switzerland - grew by 9.7% compared to a year earlier. Revenues rose to EUR 429 million after EUR 391 million for the first six months of 2020. Revenues from the prescription drugs (Rx) business - which stood at EUR 79 million in H1 - were 24% lower than in H1 2020, but this was more than offset by strength in the non-Rx categories. Compared to last year, gross profit grew at a rate of 26.0% to EUR 107 million, equivalent to a 3.2 pp gross profit margin increase to 25.0%. Adjusted EBITDA for the first six months of 2021 was EUR 15.3 million compared to EUR 16.6 million for H1 2020.

SHOP APOTHEKE EUROPE's International segment (Belgium, France, Italy and the Netherlands) increased its H1 revenues by 43.5% to EUR 106 million (2020: EUR 74 million). Gross earnings rose by 50.6% from EUR 19.3 million to EUR 29.0 million during the first six months with the gross profit margin at 27.5%, 1.3 pp above last year's 26.2%. Adjusted EBITDA was EUR -8.5 million compared to last year's EUR -5.4 million.

Strategy execution on track.

The transformation of SHOP APOTHEKE EUROPE from an online pharmacy into Europe's leading customer-centric e-pharmacy platform is fully on course. CEO Stefan Feltens comments: "We are ready for e-Rx in Germany. Our back- and frontend IT developments are complete. We are very proud of our teams that have successfully worked on this for almost two years."

SHOP APOTHEKE EUROPE also expanded its same-day delivery service SHOP APOTHEKE NOW! to all of Germany's metropolitan areas six months ahead of plan. Now more than 20 million people in Germany can receive their deliveries on the same day.

Guidance for 2021.

For the 2021 full-year, the Management Board of SHOP APOTHEKE EUROPE expects sales growth between 10 and 15%, an adjusted EBITDA margin around break-even and capex around EUR 45 million.
 

The full half-year report including the consolidated financial statements can be found here: https://shop-apotheke-europe.com/en/investorrelations/publikationen/
 

ABOUT SHOP APOTHEKE EUROPE.

SHOP APOTHEKE EUROPE is one of Europe's leading and fastest-growing online pharmacies, currently operating in Germany, Austria, France, Belgium, Italy, the Netherlands and Switzerland.

Headquartered in the Dutch logistics hub of Sevenum near Venlo with locations in Cologne, Berlin, Munich, Tongeren, Warsaw, Milan, Paris and Eindhoven, SHOP APOTHEKE EUROPE offers its customers a broad range of more than 100,000 original products at attractive prices: OTC, beauty and personal care products as well as prescription drugs, supplemented by high quality natural food and health products, low carb products and sports nutrition. Currently, more than 7 million active customers trust SHOP APOTHEKE EUROPE.

Since safe and reliable pharmaceutical advice are top priorities at SHOP APOTHEKE EUROPE, the e-pharmacy provides comprehensive pharmaceutical consulting services.

In preparation for the introduction of electronic prescriptions in Germany in summer 2021, the company will further improve the customer experience with focus on disease-specific digital medication management services following the acquisition of SMARTPATIENT in January 2021. This is a key part of SHOP APOTHEKE EUROPE's strategy to transform itself from a pure online retailer into a truly customer-centric e-pharmacy platform.

SHOP APOTHEKE EUROPE N.V. has been listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard) since 2016 and has been part of the MDAX stock index since September 2020.

PRESS CONTACTS.

Trade and popular media:
Sven Schirmer
Tel: +49 221 99 53 44 31
Email: presse@shop-apotheke.com

Financial media:
Bettina Fries
Tel: +49 211 75 80 779
Email: presse@shop-apotheke.com

Investor relations:
Carmen Herkenrath
Tel.: +31 77 850 6109
Email: carmen.herkenrath@shop-apotheke.com

Thomas Schnorrenberg
Mobile: +49 151 465 31317
Email: presse@shop-apotheke.com