THE SOLID START OF THE YEAR CONFIRMS THE TARGETS FOR 2022.

DGAP-News: SHOP APOTHEKE EUROPE NV / Key word(s): Quarterly / Interim statement/Quarterly results
SHOP APOTHEKE EUROPE: A SOLID START TO THE YEAR CONFIRMS OBJECTIVES FOR 2022.
05.05.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

SHOP APOTHEKE EUROPE: A SOLID START TO THE YEAR CONFIRMS OBJECTIVES FOR 2022.

  • Double-digit sales growth continues (+15%) in everything-but-Rx.

  • Total group sales 305 million euros (+7.3%).

  • Marked improvement in adj. EBITDA margin (+2.1pp) vs. Q4 2021.

  • Active customer base up 0.4 million in the first quarter and 1.5 million year-over-year to 8.3 million.

  • Customer satisfaction at an all-time high.

  • Acceleration of the e-Rx test phase and currently > 13,000 successful e-prescriptions.

  • Financial guidelines for the full year confirmed.

Sevenum, The Netherlands, May 5, 2022. SHOP APOTHEKE EUROPE started the year with continued double-digit growth in everything-except-prescription-drugs and strong overall sales growth of 7.3%, following strong base growth of 22% last year in the first quarter. The adjusted EBITDA margin at -1.4% improved by 2.1 percentage points (pp) compared to the -3.5% margin in the previous quarter. SHOP APOTHEKE EUROPE further strengthened its market position with record customer satisfaction, achieving a Net Promoter Score of 73 thanks to the strong performance of the new logistics center opened last year. The group’s market shares increased in all major countries and notably in Germany, where SHOP APOTHEKE’s non-Rx recorded solid and continued growth compared to the overall online market growth, which was down from in the fully locked first quarter of last year. Despite a more difficult macroeconomic environment, the results for the first quarter provide a solid basis to reconfirm the guidance announced for the full year 2022.

Stefan Feltens, CEO: “We are achieving record levels of customer satisfaction, which is driving steady and rapid growth in our customer base. At the same time, and in pursuit of our medium-term profitability objective, we continue to aim for efficiency gains. In Europe’s largest pharma market and also in our largest market, Germany, we have further enhanced our customer offering and readiness for the e-Rx opportunity with the acquisition of FIRST A. It is is a fast growing fast commerce platform for the last mile pharmacy. delivery in 30 minutes. »

Acceleration of the test phase of the Gematik e-prescription.

Progress towards digital prescriptions in Germany has accelerated recently and is currently approaching half of the total 30,000 prescriptions required before a wider roll-out across Germany. As of May 3, 13,167 e-prescriptions have been dispensed. SHOP APOTHEKE EUROPE is working with more and more doctors and insurance companies every week and continues to demonstrate its readiness for the planned nationwide implementation of electronic prescriptions in Germany.

Gains in market share and record customer satisfaction rate.

Thanks to its offer of specialized and comprehensive pharmaceutical products and services, SHOP APOTHEKE EUROPE continues to grow dynamically, even in a post-pandemic environment. Market intelligence data confirms that SHOP APOTHEKE EUROPE’s market shares increased in all major countries in the first quarter of 2022. In Germany, the company’s positive non-Rx sales growth outpaced that of the rest of the market online, where growth was negative compared to last year.

The number of active customers of SHOP APOTHEKE EUROPE increased by 0.4 million in Q1 2022, to 8.3 million, and increased by 1.5 million compared to Q1 2021. The Net Promoter Score (NPS), which gives an indication of customer satisfaction, was at an all-time high of 73 in Q1, thanks to the good performance of the new logistics center. At the same time, the Sevenum facility processed the highest number of orders ever recorded in a single day, a total of 110,000.

Total sales of the SHOP APOTHEKE EUROPE group increased by 7.3%, from 284 million euros in the first quarter of 2021 to 305 million euros. Sales in the DACH segment, in Germany, Austria and Switzerland, increased by 1.9% year-on-year, reaching €235 million, with double-digit growth of 10.1% sales of everything except Rx. Prescription drug (Rx) sales in Germany were roughly equal to the previous two quarters (Q4 and Q3 2021), but still 32.6% lower compared to Q1 2021. The International segment continued its rapid expansion of consecutive years, reaching a growth of 30.9%. % year-on-year to reach a combined turnover of 70 million euros in the Netherlands, Belgium, France and Italy.

Consolidated gross margin increased from 25.6% to 26.6% year-on-year in the first quarter, mainly due to improved supply and media revenues. In the DACH segment, gross profit margin improved by 1.1pp from 25.4% to 26.5%, while in the International segment it remained stable at 26.7% (Q1 2021 , 26.8%).

Adjusted selling and distribution (S&D) expenses increased from €59 million to €76 million. The S&D ratio rose 4.3pp to 25% in Q1 2022 as marketing efforts accelerated from last year’s full lockdown quarter. In addition, the total sales share of SHOP APOTHEKE’s international segment has increased compared to the DACH segment, reflecting the continued rapid growth of International. Even though the number of orders reached a record high, the average basket size was lower than in the first quarter of 2021. Adjusted administrative costs fell from €8.4 million to €9 million, representing a ratio stable at 2.9%.

Adjusted EBITDA amounted to -4.3 million euros compared to 5.7 million euros last year. This translates into an adjusted EBITDA margin of -1.4% (Q1 2021, 2.0%). After depreciation and amortization of EUR 8.7 million (prior year: EUR 5.5 million) and adjustments of EUR 6.2 million (previous year: EUR 2.6 million), EBIT amounts to -19.2 million euros. Adjustments increased due to IFRS3 (non-cash) accounting of business acquisitions in 2021. Net finance costs increased from €3.4 million to €3.7 million. The net result of -22.9 million euros against -5.8 million euros a year earlier.

According to Chief Financial Officer Jasper Eenhorst: “Adjusted EBITDA margin improved by 2.1 percentage points in the first quarter of 2022 compared to the fourth quarter of 2021. The improvement is notable, given that the first quarter is a promotion-heavy quarter, consumer confidence is under pressure in most of the world and inflation has increased Cash flow from operating activities was positive at 24 million euros in the first quarter, thanks in part to our continued actions to improve working capital. The pleasant and solid start to the year in performance underlines that we are on track to meet both our revenue and profit guidance for the whole year.

For the whole of 2022, the Management Board of SHOP APOTHEKE EUROPE confirms the forecasts of continued activity given at the beginning of the year, of growth in sales of everything except Rx of 15 to 25%, and of a Adjusted EBITDA margin in range of -1.5% to 1.5%.

ABOUT THE APOTHEKE EUROPE STORE.

SHOP APOTHEKE EUROPE is one of Europe’s leading and fastest growing online pharmacies, currently operating in Germany, Austria, France, Belgium, Italy, the Netherlands and Switzerland.

Based in the Dutch logistics hub of Sevenum near Venlo with locations in Cologne, Berlin, Munich, Tongeren, Warsaw, Milan, Lille and Eindhoven, SHOP APOTHEKE EUROPE offers its customers a wide range of more than 100,000 original products at attractive prices: OTC, beauty and personal care products as well as prescription drugs, complemented by high quality natural health and food products, low carbohydrate products and sports nutrition. Currently, more than 8 million active customers trust SHOP APOTHEKE EUROPE.

Since safe and reliable pharmaceutical advice is a top priority at SHOP APOTHEKE EUROPE, the online pharmacy provides comprehensive pharmaceutical advice services. In preparation for the introduction of electronic prescriptions in Germany, the company is continuously expanding in the field of digital health services.

SHOP APOTHEKE EUROPE NV has been listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard) since 2016 and is part of the SDAX stock index.

05.05.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP distribution services include regulatory announcements, financial/corporate news and press releases.
Archive at www.dgap.de

Daniel C. Williams