SHOP APOTHEKE EUROPE: SOLID START TO THE YEAR CONFIRMS GUIDANCE FOR 2022.

• Double-digit sales growth continues (+15%) in everything-but-Rx.
• Total group sales EUR 305 million (+7.3%).
• Marked improvement in adj. EBITDA margin (up 2.1pp) compared to Q4 2021.
• Active customer base up 0.4 million in Q1 and up 1.5 million y-o-y to 8.3 million.
• Customer satisfaction at record level.
• e-Rx test phase accelerating and currently at >13 K successful e-prescriptions.
• Full-year financial guidance confirmed.

Sevenum, the Netherlands, 5 May 2022. SHOP APOTHEKE EUROPE started the year with a continuation of double-digit growth in everything-but-prescription-drugs and an overall solid sales growth of 7.3%, coming off last year’s high base growth of 22% in Q1. The adjusted EBITDA margin at -1.4% improved by 2.1 percentage points (pp) versus the prior quarter’s -3.5% margin. SHOP APOTHEKE EUROPE further strengthened its market position with record-high customer satisfaction, achieving a Net Promoter Score of 73 driven by the strong performance of the new logistics centre that opened last year. The group’s market shares increased across all main countries and notably in Germany, where SHOP APOTHEKE’s non-Rx achieved continued solid growth compared to overall online market growth, which was down from last year’s fully locked-down Q1. Despite the increased challenging macroeconomic environment, the Q1 results provide a strong basis to re-confirm the stated guidance for the full year 2022.

CEO Stefan Feltens: “We’re achieving record customer satisfaction levels and this is driving consistent, fast growth in our customer base. At the same time, and in pursuit of our medium-term profitability objective, we continue to target improved efficiencies. In Europe’s largest pharmacy market and also our largest market, Germany, we further improved our customer offering and our readiness for the e-Rx opportunity with the acquisition of FIRST A. This is a fast-growing quick-commerce platform for last-mile pharmacy delivery within 30 minutes.”

Acceleration of Gematik e-prescription test phase.

The progress towards realising digital prescriptions in Germany has been accelerating recently and is currently moving towards the half-way mark of the total 30,000 prescriptions required before broader rollout throughout Germany. As of 3 May, 13,167 e-prescriptions had been issued. SHOP APOTHEKE EUROPE is working with more and more doctors and insurance companies each week and continues to demonstrate its readiness for the planned nationwide implementation of e-prescriptions in Germany.

Gains in market share and record-high customer satisfaction.

Due to its specialised and comprehensive pharmaceutical products and service offering, SHOP APOTHEKE EUROPE continues to grow dynamically, even in a post-pandemic environment. Market intelligence data confirms that SHOP APOTHEKE EUROPE’s market shares increased across all main countries in Q1 2022. In Germany, the company’s positive growth in non-Rx sales outpaced that of the rest of the online market, where growth was negative compared to last year.

SHOP APOTHEKE EUROPE’s number of active customers expanded by 0.4 million in Q1 2022, to 8.3 million, and was 1.5 million higher compared to Q1 2021. The Net Promoter Score (NPS), which provides an indication of customer satisfaction, was at a record level of 73 in Q1, on the back of strong performance at the new logistics centre. At the same time, the facility in Sevenum processed the highest number of orders ever in a single day, a total of 110K.

SHOP APOTHEKE EUROPE’s total group sales increased by 7.3% from EUR 284 million in Q1 2021 to EUR 305 million. Sales in the DACH segment, Germany, Austria and Switzerland, grew by 1.9% year-on-year, rising to EUR 235 million, with double-digit growth of 10.1% achieved in everything-but-Rx sales. Sales in prescription drugs (Rx) in Germany were roughly equal to the previous two quarters (Q4 and Q3 2021), but still 32.6% lower versus Q1 2021. The International segment continued its fast expansion of the past consecutive years, achieving growth of 30.9% year-on-year to reach a combined sales of EUR 70 million in the Netherlands, Belgium, France and Italy.

The consolidated gross profit margin increased from 25.6% to 26.6% year-on-year in Q1, mainly from sourcing and media income improvements. In the DACH segment, the gross profit margin improved by 1.1pp from 25.4% to 26.5%, while in the International segment it remained flat at 26.7% (Q1 2021, 26.8%).

Adjusted selling and distribution expenses (S&D) increased from EUR 59 million to EUR 76 million. The S&D ratio moved 4.3pp higher to 25% in Q1 2022, as marketing efforts picked up compared to last year’s full lock-down quarter. Further, the share in total sales of SHOP APOTHEKE’s International segment increased versus the DACH segment, a reflection of the continued fast growth of International. Even though the number of orders was at a record high, the average basket size was lower compared to Q1 2021. Adjusted administrative expenses increased from EUR 8.4 million to EUR 9 million, resulting in a steady ratio of 2.9%.

Adjusted EBITDA was EUR -4.3 million versus EUR 5.7 million last year. This translates into an adjusted EBITDA margin of -1.4% (Q1 2021, 2.0%). After depreciation charges of EUR 8.7 million (previous year: EUR 5.5 million) and adjustments of EUR 6.2 million (previous year: EUR 2.6 million), EBIT was EUR -19.2 million. Adjustments increased because of the (non-cash) IFRS3 accounting of the 2021 business acquisitions. Net finance costs increased from EUR 3.4 million to EUR 3.7 million. The net result of EUR -22.9 million compares to EUR -5.8 million a year earlier.

According to CFO Jasper Eenhorst: “The adjusted EBITDA margin improved by 2.1 percentage points in Q1 2022 versus Q4 2021. The improvement is notable, considering that Q1 is a promotions-heavy quarter, that consumer confidence is under pressure across most of the world and that inflation has been rising. Cash flow from operating activities was a positive EUR 24 million in Q1 driven in part by our continued actions to improve working capital. The pleasing and solid start to the year’s performance underlines that we are on track to deliver on both our top and bottom-line full-year guidance.”

For the full year 2022, the Management Board of SHOP APOTHEKE EUROPE confirms the guidance for the ongoing business given at the start of the year, of sales growth of everything-but-Rx of 15-25%, and an adjusted EBITDA margin in the range of -1.5% to 1.5%.

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, Lille 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 8 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 the electronic prescriptions in Germany, the company is continuously expanding in the area of digital health services.

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