Earnings Release • Aug 13, 2018
Earnings Release
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INTERIM FINANCIAL STATEMENTS FIRST HALF-YEAR 2018 SHOP APOTHEKE EUROPE N.V.
14 AUGUST 2018
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6
GROUP SEGMENT EBITDA improved by +1.1 percentage points to +0.25% (from –0.84% in 1st HY 2017) despite strong international growth, integration of Europa Apotheek and negative consolidation effects in other income compared to 1 st HY 2017.
Stephan Weber, Chief Marketing Officer and Deputy CEO
• RedPoints loyalty program successfully rolled out to Germany, Austria, France and soon Spain and Italy to increase repeat purchases and basket size.
7
"We're excited to have passed 3 million customers – that is another milestone in our European success story."
8
"Continuous improvement of our operations to best serve our European customers out of Venlo is a matter of the heart to us."
9
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.
Step 1: Penetrating all relevant OTC markets. Step 2: Adding online Rx once markets are liberalized.
Source: (1) Sempora market research 2017; (2) IMS PharmaScope, 2017, Sempora market study, 2017, Euromonitor (as of 03 April 2017), online penetration calculated by dividing the internet retailing market size across Europe by the total market size for each vertical, DE and US 2015, other European markets including France, Germany, Italy, Spain, United Kingdom, Switzerland, 2016; (3) ABDA, Sempora, Euromonitor, IMS health: avg. online penetration in Europe was 2.5% for Rx and 3.5% for OTC in 2016; The avg. online penetration rate is expected to grow to 6% by 2020 in continental Europe (excl. DE)
• E-commerce prescription drugs availability
Source: (1) James Dudley, selected countries shown, which are relevant for SAE, PWC and McKinsey. (2) Eurostat.
| Issuer | SHOP APOTHEKE EUROPE N.V. |
|---|---|
| Share Category | Bearer Shares |
| Stock Exchange | Frankfurt Stock Exchange |
| Listing | Regulated Market (Prime Standard) |
| 1 st 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 |
"nu3's business ideally complements our offering for the target group of health-conscious customers and provides us with the opportunity to grow even faster and with sustainable profitability, both in Germany and especially in our young markets such as France."
Michael Köhler, CEO of SHOP APOTHEKE EUROPE.
nu3 Youtube Spot: https://vimeo.com/149417321
• Expand customer base and generate marketing synergies between SHOP APOTHEKE and nu3 in 2018.
• Transfer external operations to Venlo in Q1 2019 to reduce operations and shipping costs per parcel.
• Leverage nu3 with SHOP APOTHEKE'S IT infrastructure and webshop platforms.
SHOP APOTHEKE EUROPE is on sales target for FY 2018.
Gross Profit growth is lower due to higher share of Rx revenues.
* 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.
| August 30, 2018 | Commerzbank Sector Conference, Frankfurt |
|---|---|
| September 24, 2018 | Goldman Sachs & Berenberg Conference, Munich |
| November 14, 2018 |
Analyst Day with Publication of Q3 results at Citibank, London |
| November 27, 2018 | Berenberg West Coast Conference, San Francisco |
| December 3, 2018 |
Berenberg Pennyhill Conference, London |
| 30 June 2018 | GERMANY | INTERNATIONAL | UNAUDITED INTERIM CONSOLIDATED |
|---|---|---|---|
| EUR 1.000 | EUR 1.000 | EUR 1.000 | |
| Revenue | 202,486 | 54,745 | 257,231 |
| Cost of sales | $-167,932$ | $-42,872$ | $-210,803$ |
| Gross Profit | 34,554 | 11,874 | 46,428 |
| % of revenue | 17.1% | 21.7% | 18.0% |
| Other income | $\circ$ | 7 | 8 |
| Selling & Distribution | $-31,377$ | $-14,419$ | $-45,796$ |
| Segment EBITDA | 3,178 | $-2,538$ | 640 |
| Administrative expense | $-8,068$ | ||
| Administrative expense (adj.) | $-7,592$ | ||
| EBITDA | $-7,429$ | ||
| EBITDA (adj.) | $-6,952$ | ||
| Depreciation | $-6,013$ | ||
| EBIT | $-13,441$ | ||
| EBIT (adj.) | $-12,965$ | ||
| Net finance cost and income tax | $-1,488$ | ||
| Net Loss | $-14,929$ | ||
| $N0 + 1$ acc $(2d)$ | 1A A E |
Source: SHOP APOTHEKE EUROPE Adjustments of EUR 0.5 million for one-off expenses related to projects and stock options plan.
| 30 June 2017 | GERMANY | INTERNATIONAL | GERMANY SERVICES |
ELIMINATIONS | INTERIM CONSOLIDATED |
|---|---|---|---|---|---|
| EUR 1.000 | EUR 1.000 | ||||
| Revenue | 92,129 | 34,113 | 3,145 | $-2,680$ | 126,707 |
| Cost of sales | $-72,757$ | $-26,588$ | $-146$ | 0 | $-99,490$ |
| Gross Profit | 19,372 | 7,525 | 2,999 | $-2,680$ | 27,216 |
| % of revenue | 21.0% | 22.1% | 95.4% | 21.5% | |
| Other income | 973 | 335 | 25 | $-9$ | 1,323 |
| Selling & Distribution | $-17,866$ | $-11,560$ | $-2,863$ | 2,680 | $-29,609$ |
| Segment EBITDA | 2,478 | $-3,699$ | 161 | $-9$ | $-1,069$ |
| Administrative expense | $-3,930$ | ||||
| EBITDA | $-5,000$ | ||||
| Depreciation and amortisation | $-2,095$ | ||||
| EBIT | $-7,095$ | ||||
| Net finance cost and income tax | $-1,029$ | ||||
| Net Loss | $-8,124$ |
| 30 JUNE 2018 | 30 JUNE 2017 | |
|---|---|---|
| EUR 1.000 | EUR 1.000 | |
| Revenue | 257,231 | 126,707 |
| Costs of sales | $-210,803$ | $-99,490$ |
| Gross profit | 46,428 | 27,216 |
| Other income | 8 | 1,323 |
| Selling and Distribution | $-50,907$ | $-31,389$ |
| Administrative Expense | $-8,970$ | $-4,245$ |
| Result from operations | $-13,441$ | $-7,094$ |
| Finance income | 77 | 71 |
| Finance expense | $-2,158$ | $-892$ |
| Net finance cost | $-2,081$ | $-821$ |
| Result before tax | $-15,522$ | $-7,915$ |
| Income tax | 593 | $-209$ |
| Result for the period after tax | $-14,929$ | $-8,124$ |
| Attributable to: Owners of the Company |
$-14,929$ | $-8,124$ |
| ASSETS | 30 JUNE 2018 | 31 DEC. 2017 |
|---|---|---|
| EUR 1.000 | EUR 1.000 | |
| Non-Current Assets | ||
| Property, plant and equipment | 10,200 | 8.278 |
| Intangible assets | 189,473 | 189.827 |
| Deferred tax assets | 4,103 | 3.447 |
| Investments in equity- accounted joint ventures | 905 | 905 |
| 204,681 | 202.457 | |
| Current Assets | ||
| Inventories | 30,870 | 39.989 |
| Trade and other receivables | 22,888 | 20.546 |
| Other current assets | 8,127 | 6.524 |
| Other financial assets | 34,820 | 12.510 |
| Cash and cash equivalents | 57,586 | 15.783 |
| 154,291 | 95.352 | |
| Total Assets | 358,971 | 297.808 |
| EQUITY AND LIABILITIES | 30 JUNE 2018 | 31 DEC. 2017 |
|---|---|---|
| EUR 1.000 | EUR 1.000 | |
| Shareholders' Equity | ||
| Issued capital and share premium | 289,317 | 289.317 |
| Reserves/accumulated losses | $-60,841$ | $-50.351$ |
| 228,475 | 238.966 | |
| Non-current Liabilities | ||
| Provisions | 397 | 323 |
| Deferred tax liability | 12.759 | 12.711 |
| Other liabilities | 71,667 | 4.316 |
| 84,822 | 17.350 | |
| Current Liabilities | ||
| Trade and other payables | 25,659 | 23.090 |
| Amounts due to banks | 4,766 | 4.863 |
| Other liabilities | 15,249 | 13.539 |
| 45,674 | 41.492 | |
| Total Equity and Liabilities | 358,971 | 297.808 |
| 30 JUNE 2018 | 30 JUNE 2017 | |
|---|---|---|
| EUR 1,000 | EUR 1.000 | |
| CASH FLOW FROM OPERATING ACTIVITIES | ||
| Results flow from operations | $-13,441$ | $-7,094$ |
| Adjustments for: - Depreciation and amortisation of non-current assets, taxes and provisions |
6,072 | 2,095 |
| Operating result adjusted for depreciation and amortisation, taxes and provisions | $-7,369$ | $-4,999$ |
| Movements in working capital: | ||
| - (Increase)/decrease in trade and other receivables and other current assets | $-3,945$ | $-3,422$ |
| - (Increase)/decrease in inventory | 9,119 | 6,352 |
| - Increase/(decrease) in in trade and other payables and other liabilities | 1,488 | 2.454 |
| Working capital movement | 6,662 | 5,385 |
| Cash generated from operations | $-707$ | 386 |
| Interest received | 77 | 180 |
| Net cash (used in)/generated by operating activities | $-630$ | 566 |
| 30 JUNE 2018 | 30 JUNE 2017 | |
|---|---|---|
| EUR 1.000 | EUR 1.000 | |
| CASH FLOW FROM INVESTING ACTIVITIES | ||
| Investment for property, plant and equipment | $-3,480$ | $-1,271$ |
| Investment for intangible assets | $-4,101$ | $-2,846$ |
| Investment for acquisitions | $\Omega$ | $\Omega$ |
| Investment in other financial assets | $-22,311$ | $-3,516$ |
| Net cash (used in)/generated by investing activities | $-29,892$ | $-7,633$ |
| CASH FLOW FROM FINANCING ACTIVITIES | ||
| Interest paid | $-1,313$ | $-888$ |
| Payment of earn-out obligations Farmaline | $-1,100$ | $-1,100$ |
| Issue convertible bond | 73,497 | $\Omega$ |
| Other non-current liabilities | 1,241 | 77 |
| Net cash (used in)/generated by financing activities | 72,325 | $-1,911$ |
| Net increase/(decrease) in cash and cash equivalents | 41,803 | $-8.977$ |
| Cash and cash equivalents at the beginning of the period | 15,783 | 38,485 |
| Cash and cash equivalents at the end of the period | 57,586 | 29,507 |
Dr. Ulrich Wandel
CFO
Phone: +31 77-8 50 6117
E-Mail: [email protected]
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