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Zur Rose Group AG
Earnings Release • Jan 23, 2019
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Earnings Release
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News Details
Corporate | 23 January 2019 06:50
Zur Rose Group realised its expansion goals in 2018 and grew by over 20 percent
EQS Group-News: Zur Rose Group AG / Key word(s): Development of Sales
23.01.2019 / 06:50
Press release
Zur Rose Group realised its expansion goals in 2018 and grew by over 20 percent
– Growth targets successfully implemented in 2018
– Increase in revenue of 20.8 percent in local currency terms
– Significant expansion of European market leadership
Amid challenging market conditions, the Zur Rose Group successfully implemented its growth targets in the 2018 financial year. With revenue of CHF 1,207.2 million, it significantly exceeded the billion Swiss franc threshold as expected and posted year-on-year growth of 22.8 percent (20.8 percent in local currency terms). The Group further advanced its acquisition strategy in 2018: With PromoFarma, it acquired the largest Spanish marketplace platform operator, and with apo-rot and medpex the mail-order activities of two major e-commerce pharmacies in the German market. Overall, the Group managed to further strengthen its European market leadership.
Marked increase in market share in Germany to over 30 percent
In Germany, the Zur Rose Group increased revenue in 2018 in local currency terms by 33.8 percent to EUR 581.4 million. In Swiss francs growth stood at 38.9 percent. The online over-the-counter (OTC) business grew significantly by 72.6 percent in local currency terms, while growth in the prescription drugs segment (Rx) stands at 5.0 percent. At the beginning of November 2018, the Group successfully completed the integration of the mail-order activities of apo-rot, Hamburg. Furthermore, the Group acquired the mail-order activities of Germany’s third largest e-commerce pharmacy medpex, based in Ludwigshafen, the takeover of which was successfully completed at the beginning of January 2019. Including medpex, the Zur Rose Group has therefore increased its market share in the drugs mail-order business in the core market of Germany from 18 percent to 31 percent while increasing the active number of customers to over five million.
Continuous sales growth in Switzerland
Notwithstanding state-mandated price reductions, Zur Rose succeeded in increasing its revenue in Switzerland by 5.4 percent to CHF 527.0 million in 2018. The physician business (B2B) was the main stability factor, with sales up 5.5 percent. Zur Rose succeeded in increasing its market share in this segment from 23.6 to 24.7 percent. Sales gained 4.3 percent in the B2C business. In November 2018 Zur Rose opened its third shop-in-shop-pharmacy at Limmatplatz Zurich. The concept enables customers to access products across all channels (omnichannel) and thus combines the benefits of in-store trading with those of online trading.
Continuation of expansion strategy in new markets
In 2018, the Zur Rose Group posted revenue of CHF 8.9 million with PromoFarma, which was consolidated in mid-September 2018. PromoFarma is a springboard for the expansion into new markets, cross-border as well as through the addition of new partners in other countries, with a capital-efficient business model. The initial focus is on France and Italy. At the same time, the Group will use the major technology know-how of PromoFarma to set up an e-health platform and promote the digital transformation of its business.
Management continues to expect break-even on EBITDA level, adjusted for exceptional charges and PromoFarma.
The Zur Rose Group will publish the complete 2018 Annual Report on 21 March 2019 and provide details of its outlook until 2022.
| Revenue January to December, in CHF thousands (preliminary figures) |
1.1.-31.12.2018 | 1.1.-31.12.2017 | Change |
| Zur Rose Group | 1,207,199 | 982,921 | 22.8% |
| In local currency | 20.8% | ||
| Organic | 6.3% | ||
| Segment Switzerland | 526,954 | 499,750 | 5.4% |
| B2B | 388,599 | 368,250 | 5.5% |
| B2C | 132,673 | 127,149 | 4.3% |
| BlueCare (1) | 5,682 | 4,351 | n.a. |
| Segment Germany | 671,336 | 483,171 | 38.9% |
| Rx | 302,639 | 277,492 | 9.1% |
| OTC | 368,697 | 205,679 | 79.3% |
| International | |||
| PromoFarma (2) | 8,909 | – | n.a. |
| Segment Germany, in EUR thousands | 581,421 | 434,675 | 33.8% |
| Rx | 262,106 | 249,640 | 5.0% |
| OTC | 319,315 | 185,035 | 72.6% |
| Revenue October to December, in CHF thousands (preliminary figures) |
1.10.-31.12.2018 | 1.10.-31.12.2017 | Change |
| Zur Rose Group | 317,947 | 271,294 | 17.2% |
| In local currency | 18.3% | ||
| Organic | 0.4% | ||
| Segment Switzerland | 137,179 | 136,951 | 0.2% |
| B2B | 100,834 | 97,797 | 3.1% |
| B2C | 34,968 | 37,541 | -6.9% |
| BlueCare (1) | 1,377 | 1,613 | n.a. |
| Segment Germany | 172,931 | 134,343 | 28.7% |
| Rx | 73,267 | 75,648 | -3.1% |
| OTC | 99,664 | 58,695 | 69.8% |
| International | |||
| PromoFarma (2) | 7,837 | – | n.a. |
| Segment Germany, in EUR thousands | 152,114 | 115,999 | 31.1% |
| Rx | 64,534 | 65,243 | -1.1% |
| OTC | 87,580 | 50,756 | 72.6% |
1) consolidated per 5 May 2017
2) consolidated per 14 September 2018
Investors and analyst contact
Marcel Ziwica, Chief Financial Officer
Email: [email protected], phone: +41 58 810 11 49
Media contact
Lisa Lüthi, Head of Corporate Communications
Email: [email protected], phone: +41 52 724 08 14
Financial Calendar
21 March 2019 Annual Results 2018
17 April 2019 Q1/2019 Trading Update
23 May 2019 Annual General Meeting
21 August 2019 2019 Half-Year Results
23 October 2019 Q3/2019 Trading Update
Zur Rose Group
The Swiss Zur Rose Group is Europe’s largest e-commerce pharmacy and one of the leading medical wholesalers in Switzerland. With its business model, it offers high-quality, safe and cost-effective pharmaceutical care and thus contributes to reducing healthcare costs. It is also characterized by the continuous further development of digital services in the field of drug management and actively promotes its positioning as an integrated, cross-service healthcare platform. The creation of added value and a pronounced patient orientation make the Group an important strategic partner for service providers, cost units and industry.
The Zur Rose Group is internationally present with strong brands, including Germany,s best-known pharmacy brand DocMorris. The company employs over 1,000 people at various locations and generated a turnover of CHF 1,207 million in the 2018 financial year. The shares of Zur Rose Group AG are listed on the SIX Swiss Exchange (securities number 4261528, ISIN CH0042615283, ticker ROSE). The CHF 115 million corporate bond issued in July 2018 is also listed on the SIX Swiss Exchange (securities number 42146044, ISIN CH0421460442, ticker ZRO18). Further information at zurrosegroup.com
End of Corporate News
| Language: | English |
| Company: | Zur Rose Group AG |
| Walzmühlestrasse 60 | |
| 8500 Frauenfeld | |
| Switzerland | |
| Phone: | +41 52 724 08 14 |
| Internet: | www.zurrosegroup.com |
| ISIN: | CH0042615283 |
| Listed: | SIX Swiss Exchange |
| End of News | EQS Group News Service |