SEVENUM, 03 AUGUST 2022
LIVE FROM OUR HEADQUARTERS IN SEVENUM.
STEFAN FELTENS, CEO. JASPER EENHORST, CFO.
2
TODAY'S AGENDA.
FINANCIAL PERFORMANCE.
UPDATE ON BUSINESS AND STRATEGY.
FINANCIAL PERFORMANCE.
HIGHLIGHTS H1 2022.
KEY FACTS
Q2
2022
- FY TOP AND BOTTOM-LINE GUIDANCE CONFIRMED. H1 SALES UP 11% (15% in Q2 AFTER 7% in Q1). NON-RX GREW BY 16% IN H1 (Q2 18%). ADJ. EBITDA MARGIN FOR ONGOING BUSINESS AT -1.5%.
- POSITIVE OPERATING CASH FLOW AT EUR 15M IN H1. CONTINUED FAVOURABLE WORKING CAPITAL MOVEMENTS.
- SUSTAINED STRONG CUSTOMER GROWTH AND RECORD CUSTOMER SATISFACTION.
NPS OF 74 IN Q2, DRIVEN BY FURTHER IMPROVEMENTS IN OUR CUSTOMER PROPOSITION. ACTIVE CUSTOMER BASE 8.6M: UP 0.8M IN H1 AND 1.5M YOY.
• ITALIAN EXPANSION FULLY ON TRACK.
NEW DISTRIBUTION CENTRE IN MILAN OPERATIONAL SINCE 1 AUG.
• E-RX LAUNCH IN FIRST TWO GERMAN REGIONS AHEAD.
30,000 E-SCRIPTS SUCCESSFULLY PASSED BY JULY. SINCE THEN, ACCELERATION WITH MORE THAN 100,000 E-SCRIPTS DISPENSED.
KEY FINANCIALS. BACK TO DOUBLE-DIGIT TOTAL SALES GROWTH.
ACTIVE CUSTOMER BASE FAST APPROACHING 9M. NET PROMOTER SCORE AT RECORD LEVEL IN Q2.
VISITS TO OUR WEBSITES AND APPS. FAST GROWTH OF OUR TRAFFIC CONTINUES.
DYNAMIC ORDER GROWTH: CLOSE TO 12 MILLION ORDERS PROCESSED IN H1. HIGH REPEAT ORDER SHARE REFLECTS CUSTOMER LOYALTY.
Source: SHOP APOTHEKE EUROPE.
KEY FINANCIALS: PROFIT & LOSS OVERVIEW. H1 ADJ. EBITDA MARGIN OF -1.5%.
INCLUDING COSTS FOR ITALIAN DISTRIBUTION CENTRE, MARKETPLACE EXPANSION & LAUNCH IN AUSTRIA.
Adjusted numbers for the
ongoing business
in millions of euros |
H1 2021 |
H1 2022 |
Better/
(Worse) |
Q2 2021 |
Q2 2022 |
Better/
(Worse) |
| Sales |
534 |
592 |
10.8% |
250 |
287 |
14.7% |
| Gross profit margin |
25.5% |
27.1% |
1.6 pp |
25.4% |
27.8% |
2.4 pp |
| Selling & distribution margin |
-21.2% |
-25.5% |
(4.3) pp |
-21.7% |
-26.0% |
(4.3) pp |
| Administrative costs margin |
-3.0% |
-3.2% |
(0.2) pp |
-3.2% |
-3.4% |
(0.2) pp |
| Adj. EBITDA |
7 |
-9 |
(16) |
1 |
-5 |
(6) |
| Adj. EBITDA margin |
1.3% |
-1.5% |
(2.8) pp |
0.5% |
-1.7% |
(2.2) pp |
| Total Group EBITDA |
2 |
-23 |
(25) |
-1 |
-13 |
(14) |
Adjustments in 2022 EUR 12.7M: EUR 8.7M (non-cash) from IFRS 3 accounting of the business acquisitions in 2021. The remainder is employee stock options costs (non-cash) and one-off external costs related to projects and acquisitions.
CONTINUED PROFITABLE FAST-GROWING CORE.
Sizes and exact places in the diagram are indicative only; bubble size indicative for the customer sales.
KEY FINANCIALS: GROSS PROFIT MARGIN. IMPROVEMENTS CONTINUE, UP 1.6 PP.
KEY FINANCIALS: SELLING & DISTRIBUTION RATIO. LOWER AVERAGE BASKET. MARKETING INCREASE AS PLANNED.
KEY FINANCIALS: CASH FLOW. POSITIVE OPERATING CASH FLOW; SOLID CASH BALANCE.
UPDATE ON STRATEGY AND BUSINESS.
ELECTRONIC HEALTH CARD.
TOGETHER WITH THE EAEP ALREADY IN CONVERSATIONS WITH GERMAN MINISTRY OF HEALTH TO JOINTLY FIND A SAFE, CONVENIENT, LOW-THRESHOLD AND NON-DISCRIMINATORY SOLUTION FOR ALL INSURED PEOPLE IN GERMANY.
UPDATE E-RX GERMANY.
- TEST PHASE MILESTONE OF 30,000 ELECTRONIC PRESCRIPTIONS SUCCESSFULLY REACHED IN JULY.
- "MEANWHILE 100,000 E-SCRIPTS REDEEMED. BEST CONDITIONS FOR THE LAUNCH IN SEPTEMBER". SUSANNE OZEGOWSKI, HEAD OF THE DIGITALISATION AND INNOVATION DEPARTMENT, FEDERAL MINISTRY OF HEALTH, GERMANY.
- START OF ROLL-OUT ON 1 SEPTEMBER IN WESTFALEN-LIPPE AND SCHLESWIG-HOLSTEIN REACHING MORE THAN 11 MILLION PEOPLE (14% OF GERMANY).
- AIM IS TO LAUNCH E-RX IN SIX ADDITIONAL FEDERAL STATES IN DECEMBER 2022 AND NATIONWIDE IN FEBRUARY 2023.
SHOP APOTHEKE EUROPE IS RECEIVING AND PROCESSING E-SCRIPTS EVERY DAY.
OPENING OF NEW DISTRIBUTION CENTRE IN ITALY.
- FIRST PARCEL SUCCESSFULLY PROCESSED AT THE BEGINNING OF JULY.
- 100% OF ITALIAN ORDERS WILL BE SHIPPED FROM MILAN TO OUR ITALIAN CUSTOMERS THIS MONTH.
- THE NEW DISTRIBUTION CENTRE WILL BETTER SERVE OUR FAST-GROWING ITALIAN BUSINESS AND REDUCE CO2 EMISSIONS.
- HIGH MARKET POTENTIAL OF EUR 26 BILLION, INCLUDING RX, EUR 12 BILLION WITHOUT.
UPDATE ON SHOP APOTHEKE'S MARKETPLACES.
- LAUNCH OF MARKETPLACE IN AUSTRIA IN JULY WITH ALREADY MORE THAN 5,000 PRODUCTS – CONTINUOUSLY GROWING EVERY WEEK.
- GERMAN MARKETPLACE WITH MORE THAN 40,000 PRODUCTS.
- ATTRACTIVE UNIT ECONOMICS.
HEALTH-RELATED CATEGORIES FOR MORE CHOICE, CUSTOMER SATISFACTION AND LOYALTY.
OUTLOOK AND GUIDANCE.
GUIDANCE CONFIRMED.
FULL YEAR 2022 FOR OUR ONGOING BUSINESS.
- 15 25% GROWTH OF NON-RX.
- RX SALES NO GUIDANCE FOR 2022, BUT PAPER-RX DECLINE BOTTOMED-OUT.
- ADJ. EBITDA MARGIN -1.5% TO +1.5%.
MID- TO LONG-TERM:
• ADJ. EBITDA MARGIN IN EXCESS OF 8%.
* Ongoing business: as at the time of issuing the guidance in March 2022. * Rx concerns the German prescription medications; Rx sales of other countries are in Non-Rx.