SEVENUM, 02 MARCH 2022
FY 2021
WELCOME TO OUR EARNINGS CALL.
STEFAN FELTENS, CEO. JASPER EENHORST, CFO.
2
LIVE FROM OUR HEADQUARTERS IN SEVENUM.
TODAY'S AGENDA.
FINANCIAL PERFORMANCE.
UPDATE ON BUSINESS AND STRATEGY.
FINANCIAL PERFORMANCE.
HIGHLIGHTS 2021.
KEY FACTS
Q2
2021
• 1 BILLION THRESHOLD EXCEEDED.
INTERNATIONAL UP 39.6%, DACH UP 3.9%. IN GERMANY, SIGNIFICANT MARKET SHARE GAIN IN NON-RX. ALSO IN OUR OTHER LARGE MARKETS, WE OUTPERFORMED OUR BEST ESTIMATES OF TOTAL E-PHARMACY GROWTH.
• ADJ. EBITDA OF EUR -5.3M. MARGIN -0.5% VS. -1.0% IN LATEST GUIDANCE.
• STRONG CUSTOMER GROWTH. BASE OF ACTIVE CUSTOMERS UP 1.6M VS. LAST YEAR TO 7.9M.
• STRATEGY EXECUTION FULLY ON TRACK; READY FOR E-RX.
- AMPLE CAPACITY WITH NEW NEXT-GENERATION DISTRIBUTION FACILITY FOR THE E-RX OPPORTUNITY AND OUR AMBITIONS.
- ACCELERATED EXPANSION OF OUR DIGITAL HEALTH SERVICES.
- ROLL-OUT OF SAME-DAY DELIVERY SERVICE NOW!.
- LAUNCH OF OUR OWN MARKETPLACE FOR ADDITIONAL ASSORTMENTS.
KEY FINANCIALS. DACH / EVERYTHING-BUT-RX +18%, INTERNATIONAL UP +40%.
1.6M ADDITIONAL ACTIVE CUSTOMERS IN 2021. RECORD GROWTH IN CUSTOMER BASE – CLOSE TO 8M NOW.
EVERY WEEK MORE THAN 7 MILLION VISITS ON WEB AND APP. TRAFFIC AT RECORD LEVEL AT THE START OF 2022.
SHOP APOTHEKE EUROPE.
STRONG ORDER GROWTH, PARTICULARLY IN Q4. CLOSE TO 20 MILLION CUSTOMER ORDERS IN 2021.
SHOP APOTHEKE EUROPE.
KEY FINANCIALS. EUR 1,060M SALES AND EUR -5M (-0.5%) ADJ. EBITDA.
EBITDA adjustments include EUR 22.45 million from accounting related to the 2021 business acquisitions.
Adjusted numbers
in million of euros |
Q4
YTD |
|
|
Full
Year
Q3 |
|
|
|
Q4 2020 |
Q4 2021 |
Better/
(Worse) |
2020 |
2021 |
Better/
(Worse) |
| Sales |
265 |
288 |
8.8% |
968 |
1,060 |
9.5% |
-
Everything-but-Rx (Non-Rx) |
205 |
255 |
24
4% |
749 |
917 |
22.5% |
-
Rx |
60 |
33 |
6%)
(44 |
219 |
144 |
(34.6%) |
| Gross profit margin |
23.6% |
24.6% |
1.0 pp |
22.7% |
25.2% |
2.5 pp |
Selling & distribution
as percentage of sales |
-18.4% |
-25.1% |
(6.7) pp |
-17.8% |
-22.6% |
(4.8) pp |
Administrative costs
as percentage of sales |
-3.0% |
-3.0% |
0.0 pp |
-2.7% |
-3.1% |
(0.4) pp |
| Adj. EBITDA |
6 |
-10 |
(16) |
22 |
-5 |
(27) |
| Adj. EBITDA margin |
2.3% |
-3.5% |
(5.8) pp |
2.2% |
-0.5% |
(2.7) pp |
| EBITDA |
3 |
-35 |
(38) |
15 |
-39 |
(54) |
Adjustments in 2021 EUR 33M: non-cash employee stock option costs, one-off costs related to projects which included the set-up of the new logistics centre and acquisition expenses, and EUR 22.45M from IFRS 3 accounting for the earn-out of the 2021 business acquisitions.
2021: PROFITABLE FAST-GROWING CORE.
Sizes and exact places in the diagram are indicative only; bubble size indicative for the customer sales
KEY FINANCIALS. GROSS MARGIN UP 2.5 PERCENTAGE POINTS.
KEY FINANCIALS. S&D UP 4.8 PERCENT OF SALES.
KEY FINANCIALS. STRENGTHENED CASH POSITION.
OPERATING CASH: EUR +12 MILLION. Favourable working capital movements.
INVESTMENTS: EUR 87 MILLION. Smartpatient, new logistics centre in NL, IT, MedApp, and PP&E.
FINANCING: EUR +230 MILLION. Mainly successful EUR 225 million new convertible bonds in Q1 2021 (coupon 0%) .
UPDATE ON STRATEGY AND BUSINESS.
FROM A PURE ONLINE RETAILER …
… TO EUROPE'S LEADING CUSTOMER-CENTRIC E-PHARMACY PLATFORM.
MARKETPLACE.
- LAUNCH IN GERMANY LAST DECEMBER.
- MORE CHOICE OF ADDITIONAL PRODUCTS AND NEW CATEGORIES.
- PARTNERSHIPS WITH CAREFULLY SELECTED MERCHANTS.
ROLL-OUT TO OTHER COUNTRIES PLANNED THIS YEAR.
PRESENTING OUR MARKET PLACE.
NOW! OUR SAME-DAY DELIVERY.
- AVAILABLE IN THE METROPOLITAN AREAS ACROSS GERMANY, REACHING WELL MORE THAN 20 MILLION PEOPLE NOW.
- SUCCESSFULLY LAUNCHED IN VIENNA / AUSTRIA.
FURTHER ROLL-OUTS THIS YEAR.
.
E-RX PROGRESSING. WE ARE READY.
- CONCLUSION OF GEMATIK TEST PHASE WHEN PREDEFINED QUALITY CRITERIA ARE MET.
- 2,882 OF 30,000 E-PRESCRIPTIONS REDEEMED*.
STATUS QUO SHOP APOTHEKE EUROPE.
- 85 E-PRESCRIPTIONS PROCESSED VIA TELEMATIC INFRASTRUCTURE SINCE LAST OCTOBER.*
- REIMBURSEMENTS BY 17 INSURANCE COMPANIES.*
- 18 DOCTORS THAT FILLED E-PRESCRIPTIONS.*
*) As per 1 March 2022.
NEW DISTRIBUTION CENTRE IN ITALY.
- MASSIVE OPPORTUNITY WITH MARKET OF AROUND 30 BILLION INCLUDING RX.
- START OF SHOP FARMACIA IN 2018. WE GREW TRIPLE DIGIT IN 2021.
- OPENING OF MILAN DISTRIBUTION CENTRE BY Q3, TO BE CLOSER TO OUR ITALIAN CUSTOMERS.
- OUR FIRST DISTRIBUTION FACILITY OUTSIDE THE NETHERLANDS. ADDITIONAL CAPACITY FREED FROM SEVENUM.
- DIRECT REDUCTION OF CO2 EMISSIONS.
IMPORTANT STEP IN OUR AMBITIOUS GROWTH PLANS.
OUTLOOK AND GUIDANCE.
FOR OUR CURRENT BUSINESS. MID- TO LONG-TERM ADJ. EBITDA MARGIN OUTLOOK UNCHANGED
ADJ. EBITDA MARGIN IN EXCESS OF 8%.
DRIVERS:
- GROSS PROFIT MARGINS.
- MEDIA INCOME.
- MARKETING LOWER AS A PERCENTAGE OF SALES.
- OPERATIONAL AND OVERHEAD EFFICIENCIES.
- SCALE, SPECIFICALLY IN OUR SEGMENT INTERNATIONAL.
- E-RX (ELECTRONIC PRESCRIPTIONS).
- MARKET PLACE / PLATFORM.
GUIDANCE FOR 2022. FOR OUR CURRENT BUSINESS.
FULL YEAR SALES.
15% TO 25% GROWTH OF NON-RX.
• NON-RX ACCOUNTED FOR OVER EUR 0.9 BILLION (90%) OF OUR SALES IN 2021.
RX SALES – NO GUIDANCE FOR 2022.
• UNCERTAIN EXACT TIMINGS: ROLL-OUT OF E-RX AND EARLY ADOPTION RATES.
FULL YEAR ADJ. EBITDA MARGIN.
-1.5% TO +1.5%
THIS INCLUDES:
- MARKETING FOR A NATIONWIDE E-RX LAUNCH IN GERMANY IN THE COURSE OF THE YEAR.
- A CERTAIN DEGREE OF UNCERTAINTY DUE TO CORONA AND POST-CORONA EFFECTS.
* Rx concerns the German prescription medications; Rx sales of other countries are in Non-Rx.
28
Q1 OUTLOOK.
NON-RX: STRONG SALES GROWTH CONTINUES ACROSS OUR GEOGRAPHIES.
- START OF THE YEAR SHOWED CONTINUATION OF OUR MANY YEARS' CONSECUTIVE TRACK-RECORD OF DOUBLE-DIGIT GROWTH.
- MARGIN: Q1 GENERALLY IS PROMOTIONAL.
RX SALES.
- PAPER-RX: SIGNS THAT THE DECLINE BOTTOMED OUT STARTING Q3/2021.
- NOTE: HIGH BASE EFFECT DUE TO STRONG Q1 2021.
STRONG UPGRADE FROM MSCI.
- IMPROVEMENT IN AREAS INCLUDING:
- CARBON FOOTPRINT.
- PRIVACY & DATA SECURITY.
- GOVERNANCE.
- MANAGEMENT OF PEOPLE / LABOUR.
- INCREASED FROM 5.0 POINTS TO 8.1 POINTS.
Q&A SESSION.
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|
Confirmation Code: 6337128
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THANK YOU FOR YOUR TIME.