DGAP-News: SHOP APOTHEKE EUROPE CONFIRMS FULL-YEAR TOP AND BOTTOM LINE GUIDANCE AFTER STRONG H1 SALES PERFORMANCE.

SHOP APOTHEKE EUROPE CONFIRMS FULL-YEAR TOP AND BOTTOM LINE GUIDANCE AFTER STRONG H1 SALES PERFORMANCE.

• Total Group sales in H1 up 11% reaching EUR 592 million; further growth acceleration in Q2 to 15%.
• Non-Rx sales grew by 16% in H1 and by 18% in Q2.
• Adj. EBITDA margin for continuing operations H1 -1.5%; Q2 -1.7%.
• Positive operating cash flow of EUR 15 million in H1.
• Active customer base approaching 9 million – up 0.8 million in H1 and 1.5 million year-over-year to 8.6 million.
• Reconfirm full-year guidance: non-Rx sales growth (15–25%) and adj. EBITDA margin for continuing operations (-1.5%–1.5%). 
• Italian expansion: new distribution centre in Milan fully operational.

Sevenum, the Netherlands, 3 August 2022. SHOP APOTHEKE EUROPE’s final earnings figures for Q2 2022 confirm a strong double-digit growth of 14.7% in total sales during the quarter. This translates into a 10.8% increase in sales for H1 2022. The performance comes on the back of non-Rx sales growth of 17.6% year-over-year in Q2 2022 (16.1% in H1 2022). SHOP APOTHEKE EUROPE made gains in the active customer base in H1 2022 – which was up by 0.8 million in the past six months – and customer loyalty, as reflected in a repeat orders rate of 83% in Q2 2022. The number of total active customers is fast approaching 9 million (June 2022: 8.6 million), strengthening the Group’s market position in the seven countries in which it operates. The adj. EBITDA margin for continuing business operations was -1.5% in H1 2022 (H1 2021: 1.3%). Following the performance recorded in H1 2022, the management of SHOP APOTHEKE EUROPE reconfirms the full-year guidance for the top and bottom line.

CEO Stefan Feltens comments: “Undoubtedly, the first half of this year was characterised by a strained macro-economic environment and global supply chain shortages. At SHOP APOTHEKE EUROPE we were able to navigate through these challenges and continued to fulfill customer orders efficiently. We shortened delivery times and further improved our customer proposition, achieving double-digit sales growth. Our fulfillment capabilities are growing from strength to strength, with the recent addition of the Italian distribution centre in Milan. Our business model, as well as our financial stability, enable us to withstand current macro-economic pressures and to benefit from the soon-to-be rolled out e-prescriptions in Germany.”

On 14 July, the Gematik announced that the significant criterion of 30,000 successfully processed e-prescriptions had been achieved. Meanwhile, the redemption of e-prescriptions (with a total of well over 100,000 currently reported) will continue until the launch of e-Rx in the first two regions of Germany on 1 September, which account for a population of more than 11 million or around 14% of the total German population.  Also, by 1 September, all pharmacies in Germany have to be ready to receive e-prescriptions. Meanwhile, SHOP APOTHEKE EUROPE is receiving and processing e-prescriptions on a daily basis.

CFO Jasper Eenhorst: “In Q2, we successfully expanded gross profit and drove business growth in a controlled way. We continued to outperform the markets, and hence gained market share. Simultaneously, in H1, we absorbed costs related to the opening of a new distribution centre in Italy, the expansion of our German marketplace and the launch thereof in Austria, as well as the enrichment of our range of last-mile delivery options. Nevertheless, driven by working capital improvements, the year-to-date operating cash flow stands at EUR 15 million.”

After having increased by 0.8 million customers in H1 2022 (slightly up from the 0.7 million reported with the preliminary results on 5 July), the active customer base at the end of June was 8.6 million (7.1 million at the end of H1 2021). The customer net promoter score was at a record-high of 74 in Q2 and stood at 73 year-to-date.

Total sales in H1 2022 grew to EUR 592 million (H1 2021: EUR 534 million). Higher sales were complemented by an increase in the gross profit margin from 25.5% in H1 2021 to 27.2% in H1 2022. The 1.7 percentage points increase in the gross profit margin was driven by purchasing and media improvements and a one-off Corona-related expense in 2021. In Q2, total sales rose by 14.7% to EUR 287 million (Q2 2021: EUR 250 million), while the gross profit margin improved by 2.4 percentage points relative to Q2 2021 to 27.8%.

Adjusted selling and distribution expenses (S&D) for the ongoing business operations increased from EUR 113 million in H1 2021 to EUR 151 million over the same period in 2022. As a percentage of sales, this marks a rise from 21.2% to 25.5% (in Q2 from 21.7% to 26%). This can be attributed predominantly to higher marketing costs and partly to a lower average basket size. Total group S&D expenses were EUR 152 million in H1 or 25.7% of sales (H1 2021: 21.3%) and EUR 76 million or 26.3% in Q2.

Adjusted administrative expenses for ongoing operations increased to 18.8 million in H1 2022 – from EUR 16.3 million in H1 2021. This equates to 3.2% of sales, which is 0.2 percentage points higher than last year, because of an expanded employee base and IT expenditures. Total administrative expenses for H1 2022 are EUR 32 million or 5.4% of sales (H1 2021: EUR 20.8 million or 3.9%) and include adjustments of EUR 12.7 million (H1 2021: EUR 4.5 million). Adjustments increased because of the non-cash IFRS 3 accounting effect of the 2021 business acquisitions, which was EUR 8.7 million (H1 2021: EUR 0).

For the first half of the year, SHOP APOTHEKE EUROPE recorded an EBITDA of EUR -23.1 million (H1 2021: EUR 1.6 million) and an EBITDA margin of -3.9% (H1 2021: 0.3%).  Adjusted EBITDA for the ongoing business is EUR -9 million for H1 2022, or a margin of        -1.5%. In Q2 2022, the adj. EBITDA margin for ongoing operations is -1.7%, compared to Q2 2021’s 0.5%.

The Group’s EBIT for H1 is EUR -41 million (H1 2021: EUR -10 million). This year’s figure includes the aforementioned non-cash IFRS 3 accounting effects of business acquisitions that were recorded in Q4 2021 for the first time. Depreciation costs in H1 were EUR 17.9 million (H1 2021: EUR 11.7 million) while net finance costs improved marginally by EUR 0.1 million to EUR 6.8 million. Net loss widened to EUR 47.8 million compared to EUR 17 million in 2021. Cash generated by operating activities was a positive EUR 14.7 million (H1 2021: EUR 25.1 million) and investment cash flow was EUR -29.3 million (H1 2021: EUR -60.5 million).

Marked non-Rx performance in segments.

In the DACH segment comprising Germany, Austria and Switzerland, total sales increased by 6% in H1 2022 or by EUR 26 million to EUR 455 million (H1 2021: EUR 429 million). Sales of prescription drugs (Rx) amounted to EUR 63 million (H1 2021: 79 million), while non-Rx sales increased by 12.1% year-over-year in H1 2022. The gross profit margin recorded a 2.3 percentage point improvement, from 25.0% to 27.3%. The adj. EBITDA for the DACH segment in H1 2022 was EUR 3.5 million (H1 2021: EUR 15.3 million).

Sales in the International segment (Belgium, the Netherlands, France and Italy) remained strong in H1 2022, increasing by 30% to EUR 137 million (H1 2021: EUR 106 million).  Gross profit margin declined from 27.5% to 26.6% due to product mix changes and the impact of preparations for the opening of the new Italian distribution centre, which were partly offset by purchasing and product cost improvements. The International segment recorded an adj. EBITDA of EUR -14 million in H1 2022, compared to EUR -8.5 million the previous year.    

SHOP APOTHEKE EUROPE: sustained growth now and in the future.

In preparation for the roll-out of e-Rx, SHOP APOTHEKE EUROPE has continued to invest in the growth of customers and the expansion of services offered such as same-day delivery (SHOP APOTHEKE NOW!) and the inclusion of quick delivery (FIRST A). In the International segment, the first order was successfully processed at its new distribution centre in Milan at the beginning of July. Since 1 August all Italian orders have been shipped from this new warehouse, improving the Italian customer proposition, and at the same time freeing up capacity at the Sevenum facility to process e-Rx for Germany in the future. The Milan distribution facility will better serve SHOP APOTHEKE EUROPE´s fast-growing Italian business while reducing CO2 emissions as well.

Guidance remains unchanged.

For the full year 2022, the Management Board of SHOP APOTHEKE EUROPE reconfirms the guidance for the ongoing business given at the start of the year – with sales growth of non-Rx of 15–25% and an adjusted EBITDA margin in the range of -1.5% to 1.5%.

ABOUT SHOP APOTHEKE EUROPE.

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.

Headquartered 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 broad range of more than 100,000 original products at attractive prices: OTC, beauty and personal care products as well as prescription drugs, supplemented by high quality natural food and health products, low carb products and sports nutrition. Currently, more than 8.6 million active customers trust SHOP APOTHEKE EUROPE.

Since safe and reliable pharmaceutical advice are top priorities at SHOP APOTHEKE EUROPE, the e-pharmacy provides comprehensive pharmaceutical consulting services. In preparation for the introduction of the electronic prescriptions in Germany, the company is continuously expanding in the area of digital health services.

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