Earnings Release • Nov 13, 2018
Earnings Release
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INTERIM FINANCIAL STATEMENTS 9 MONTHS 2018 SHOP APOTHEKE EUROPE N.V.
Frankfurt, 14 November 2018
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GROUP SEGMENT EBITDA improved by +1.7 percentage points to +1.2% (from –0.5% after 9M 2017) despite strong international growth, integration of Europa Apotheek and nu3 GmbH as well as consolidation effects in other income compared to 9M 2017.
With the acquisition of nu3 GmbH, SHOP APOTHEKE EUROPE further expands its positioning and value creation in its European markets:
In addition to expanding the product range with complementary products, cross-selling potentials will emerge by addressing additional customers. nu3 GmbH is already active in major European markets and operates in the fast-growing market segment of functional nutrition products with high online penetration.
The high-quality product range of nu3 which comprises natural food and health products, low carb products and sports nutrition has strong and well-known brands.
7
SHOP APOTHEKE EUROPE received two of the top four scores in a ranking of German online pharmacies conducted for the renowned business magazine Focus Money. Europa Apotheek received 100 points
and was awarded the gold label as "Customer Favourite 2018". SHOP APOTHEKE came in fourth with 92 points and was thus also ranked ahead several major competitors.
SHOP APOTHEKE EUROPE continues on its rapid growth course:
After passing the 3 million customer mark in July, since September more than 3.2 million active customers.
Customers who placed at least one order during the past 12 months trust the extensive offering andaward-winning customer service of Europe's leading online pharmacy.
The company's customer base increased by ca. 900,000 people to 2.7 million in 2017, meaning SHOP APOTHEKE EUROPE has doubled the number of active customers over the last 2 years.
9
Successful roll-out in Germany, France, Italy & Spain in 2018
10 RedPoints for every Euro spent.
10
SHOP APOTHEKE EUROPE placed first among online pharmacies at the WEBSHOP AWARDS Germany 2018-2019 and was named "Online Retailer of the Year" in its category.
The award is the result of an online survey in which around 110,000 consumers ranked a broad range of renowned retailers and online shops in 36 categories, using such criteria as product quality, price, product range and delivery.
Overall, participants submitted 229,855 evaluations between May 15 and September 3, 2018.
OCTOBER 2018
SHOP APOTHEKE EUROPE has been admitted to one of the DAX group's select indices for the first time ever. The company joined the SDAX on September 24, 2018.
Since its IPO in October 2016, SHOP APOTHEKE EUROPE has continuously increased its market capitalization and share turnover. These developments are the result of dynamic operational growth in the sales of non-prescription (OTC) medications and beauty and personal care products as well as of the company's active role in the consolidation of the online pharmacy market.
| Issuer | SHOP APOTHEKE EUROPE N.V. |
|---|---|
| Share Category | Bearer Shares |
| Stock Exchange | Frankfurt Stock Exchange |
| Listing | Regulated Market (Prime Standard) |
| st 1 day of trading |
13 October 2016 |
| Issue Price |
EUR 28.00 |
| # of shares |
12,074,926 (as of 20 July 2018) |
| Share Capital | EUR 241,498.52 |
| ISIN | NL0012044747 |
Large Opportunity Complimentary to OTC/BPC(1) 2017 Continental European Total Addressable Market ("TAM"), € bn (excl. VAT)
Source: (1) Sempora 2017, OTC is defined as non-prescription medication. Continental Europe excludes the UK and certain small EU countries; countries included are: Germany, France, Italy, Spain, Poland, Romania, Netherlands, Belgium, Portugal, Czech Republic, Hungary, Sweden, Bulgaria, Denmark, Slovakia, Norway, Austria. SAE is OTC and Pharma Related BPC. (2) Please refer to page 11. (3) Sempora and Euromonitor. All market sizes exclude VAT.
The E-SCRIPT has been designated an important strategic priority to improve healthcare in Europe. Since the EU is working towards a cross-border electronic healthcare system that will make it possible for EU citizens to get their
E-SCRIPTS, SHOP APOTHEKE EUROPE is set to roll it out.
• International Gross Profit has increased by 0.8pp to 22.7% from 21.9% in the first nine months 2017 despite strong growth.
Web traffic (in m)
Share of mobile visits (%)
* We define active customers as unique customers who are active in 12 months preceeding a given period of time.
SHOP APOTHEKE has passed 3m active customers in July 2018.
| November 27, 2018 | Berenberg West Coast Conference, San Francisco |
|---|---|
| December 3, 2018 |
Berenberg Pennyhill Conference, London |
| January 21-23, 2019 | Kepler Cheuvreux, 18th German Corporate Conference, Frankfurt |
| March 15, 2019 |
Financial Results/Annual Report 2018 |
| April 30, 2019 |
Annual General Meeting, Venlo |
| PERIOD ENDED 30.9.2018 |
GERMANY | INTERNATIONAL | INTERIM CONSOLIDATED |
|---|---|---|---|
| EUR 1,000 | EUR 1,000 | EUR 1,000 | |
| Revenue | 302,294 | 86,187 | 388,481 |
| Cost of sales | $-249,995$ | $-66,650$ | $-316,645$ |
| Gross Profit | 52,298 | 19,538 | 71,836 |
| % of revenue | 17.3% | 22.7% | 18.5% |
| Other income | 1 | 8 | 9 |
| Selling & Distribution | $-46.057$ | $-22,579$ | $-68,635$ |
| Adjusted S&D | $-45,118$ | $-21,978$ | $-67,095$ |
| Segment EBITDA | 6,243 | $-3,033$ | 3,210 |
| Adjusted Segment EBITDA | 7,182 | $-2,432$ | 4,750 |
| Administrative expense | $-13,384$ | ||
| Adjusted AE | $-11,997$ | ||
| EBITDA | $-10,174$ | ||
| Adjusted EBITDA | $-7,247$ | ||
| Depreciation | $-9,273$ | ||
| EBIT | $-19,447$ | ||
| Adjusted EBIT | $-16,520$ | ||
| Net finance cost and income tax | $-3,480$ | ||
| Net Loss | $-22,927$ | ||
| Adjusted Net Loss | $-20,001$ |
Adjustments of EUR 2.9 million for one-off expenses related to the issurance of the convertible bond, implementation of the ESOP and nu3 integration.
29
| PERIOD ENDED 30.9.2017 |
GERMANY | INTERNATIONAL | GERMANY SERVICES |
ELIMINATIONS | CONSOLIDATED |
|---|---|---|---|---|---|
| EUR 1,000 | EUR 1,000 | EUR 1,000 | EUR 1,000 | EUR 1,000 | |
| Revenue | 137,514 | 53,039 | 4,591 | $-3,979$ | 191,165 |
| Cost of sales | $-108,914$ | $-41,410$ | $-248$ | $\sigma$ | $-150,57'$ |
| Gross Profit | 28,600 | 11,629 | 4,343 | $-3,979$ | 40,594 |
| % of revenue | 20.8% | 21.9% | 94.6% | 21.2% | |
| Other income | 1,442 | 517 | 36 | 9 | 1,986 |
| Selling & Distribution | $-25,857$ | $-17,424$ | $-4,268$ | 3,979 | $-43,570$ |
| Adjusted S&D | $-25.857$ | $-17,424$ | $-4,268$ | 3,979 | $-43,570$ |
| Segment EBITDA | 4,185 | $-5,278$ | 111 | $-9$ | $-99'$ |
| Adjusted Segment EBITDA | 4,185 | $-5,278$ | 111 | $-9$ | $-99'$ |
| Administrative expense | $-6,244$ | ||||
| Adjusted AE | $-5,828$ | ||||
| EBITDA | $-7,235$ | ||||
| Adjusted EBITDA | $-6,819$ | ||||
| Depreciation | $-4,134$ | ||||
| EBIT | $-11,369$ | ||||
| Adjusted EBIT | $-10,953$ | ||||
| Finance income | 6 ° | ||||
| Finance expense | $-1,452$ | ||||
| Net finance cost | $-1,383$ | ||||
| Result before tax | $-12,75'$ | ||||
| Adjusted result before tax | $-12,336$ |
30
| PERIOD ENDED 30.9.2018 |
PERIOD ENDED 30.9.2017 |
|
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| Revenue | 388.481 | 191,165 |
| Costs of sales | $-316.645$ | $-150,571$ |
| Gross profit | 71.836 | 40,594 |
| Other income | 9 | 1,986 |
| Selling & Distribution | $-76,517$ | $-47,084$ |
| Administrative Expense | $-14,775$ | $-6,865$ |
| Result from operations | $-19,447$ | $-11,369$ |
| Finance income | 87 | 69 |
| Finance expense | $-4,192$ | $-1,452$ |
| Net finance cost | $-4,105$ | $-1,382$ |
| Result before tax | $-23,552$ | $-12,751$ |
| Income tax | $-625$ | $-237$ |
| Result after tax | $-22,927$ | $-12,988$ |
| Attributable to: Owners of the Company |
$-22,927$ | $-12,988$ |
| ASSETS | 30.9.2018 | 31.12.2017 |
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| Non-current assets | ||
| Property, plant and equipment | 10,010 | 8,278 |
| Intangible assets | 198,833 | 189,827 |
| Deferred tax assets | 4,189 | 3,447 |
| Investments in equity-accounted joint ventures | 915 | 905 |
| 213,946 | 202,457 | |
| Current assets | ||
| Inventories | 33,967 | 39,989 |
| Trade and other receivables | 22,630 | 20,546 |
| Other current assets | 13,543 | 6,524 |
| Other financial assets | 34,831 | 12,510 |
| Cash and cash equivalents | 44,957 | 15,783 |
| 149,928 | 95,352 | |
| 363,874 | 297,808 | |
| Total Assets |
| EQUITY AND LIABILITIES | 30.9.2018 | 31.12.2017 |
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| Shareholders' equity | ||
| Issued capital and share premium | 292,045 | 289,317 |
| Reserves/accumulated losses | $-67,923$ | $-50,351$ |
| 224,122 | 238,966 | |
| Non-current liabilities | ||
| Provisions | 452 | 323 |
| Deferred tax liability | 14,695 | 12.711 |
| Other liabilities | 71,939 | 4.316 |
| 87,086 | 17.350 | |
| Current liabilities | ||
| Trade and other payables | 29,197 | 23,090 |
| Amounts due to banks | 4,750 | 4,863 |
| Other liabilities | 18,720 | 13,539 |
| 52,666 | 41,492 | |
| Total Equity and Liabilities | 363,874 | 297,808 |
| PERIOD ENDED 30.9.2018 |
PERIOD ENDED 30.9.2017 |
|
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| CASH FLOW FROM OPERATING ACTIVITIES | ||
| Results flow from operations | $-19,447$ | $-11,369$ |
| Adjustments for: - Depreciation and amortisation of non-current assets, taxes and provisions |
9,371 | 4,134 |
| - Issuance of stock option plan | 913 | |
| Operating result adjusted for depreciation and amortisation, taxes and provisions | $-9,163$ | $-7,235$ |
| Movements in working capital: | ||
| - (Increase)/decrease in trade and other receivables and other current assets | $-6,750$ | $-4,393$ |
| - (Increase)/decrease in inventory | 9,510 | 630 |
| - Increase/(decrease) in in trade and other payables and other liabilities | 2,234 | 14,831 |
| Working capital movement | 4,994 | 11,068 |
| Cash generated from operations | $-4,169$ | 3.833 |
| Interest received | 87 | 223 |
| Net cash (used in)/generated by operating activities | $-4,082$ | 4.056 |
| PERIOD ENDED 30.9.2018 |
PERIOD ENDED 30.9.2017 |
|
|---|---|---|
| EUR 1,000 | EUR 1,000 | |
| CASH FLOW FROM INVESTING ACTIVITIES | ||
| Investment for property, plant and equipment | $-3,987$ | $-6,503$ |
| Investment for intangible assets | $-5.880$ | $-4,334$ |
| Investment in other financial assets | $-22.296$ | $-1,059$ |
| Acquisition of subsidiary, net of cash acquired | $-4,379$ | $\Omega$ |
| Net cash (used in)/generated by investing activities | $-36,542$ | $-11,896$ |
| CASH FLOW FROM FINANCING ACTIVITIES | ||
| Interest paid | $-4,106$ | $-1,452$ |
| Capital increase | $\Omega$ | $-356$ |
| Payment of earn-out obligations Farmaline | $-1.100$ | $-1,100$ |
| Investment equity accounted joint ventures | $-10$ | |
| Issue convertible bond | 73.499 | |
| Other non-current liabilities | 1,514 | 2,727 |
| Net cash (used in)/generated by financing activities | 69,797 | $-180$ |
| Net increase/(decrease) in cash and cash equivalents | 29,174 | $-8,020$ |
| Cash and cash equivalents at the beginning of the period | 15,783 | 38,485 |
| Cash and cash equivalents at the end of the period | 44,957 | 30,464 |
Dr. Ulrich Wandel
CFO
Phone: +31 77-8 50 6117
E-Mail: [email protected]
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