Celesio AG / Quarter Results
12.08.2010 07:02
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Celesio reports significant growth in first half year 2010
- Growth programme Agenda 2015 making good headway
- Revenue and EBITDA up on previous year
- Significant increase in profitability in Wholesale business area
- DocMorris developing to become the leading European pharmacy brand
- Positive prospects for 2010 defined
Stuttgart, 12 August 2010. Celesio, one of the leading international
service providers within the pharmaceutical and healthcare markets,
significantly increased its revenue and EBITDA in the first half year 2010.
Group revenue increased by 10.8 per cent compared with the same period last
year to 11.5 billion euro. EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortisation) rose by 9.6 per cent to 324.5 million euro.
The main driver behind this was the positive development in earnings from
pharmaceutical wholesale, the result primarily of the first consolidation
of the Brazilian wholesaler Panpharma, as well as good growth in the
operating business. Celesio remains optimistic about its full-year results.
'Our success in the first half of the year shows we are on the right path
with our growth programme Agenda 2015 to achieve EBITDA in 2015 of more
than one billion euro. As part of this programme, we have increased
efficiency, optimised our portfolio and pushed forward innovations in the
first half of 2010,' says Fritz Oesterle, Chairman of the Celesio
Management Board and CEO. 'We have managed to increase profitability in the
wholesale business and within Movianto. Our partnership with Phoenix will
place us in an excellent position in the Dutch market. We have also pushed
ahead with the internationalisation of DocMorris. We aim to turn DocMorris
into Europe's leading pharmacy brand in the years ahead. Finally, we are
finding completely new ways: our joint venture with Medco Health Solutions
will provide health insurance funds and manufacturers with integrated
solutions to increase efficiency reserves in the pharmaceutical and
healthcare markets. This will open up medium to long-term growth
opportunities for us, and strengthen Celesio's position as the leading
service provider in the European healthcare markets.'
For the further course of 2010 Oesterle emphasises: 'We have increased
revenue and EBITDA compared with the same period last year even more
significantly than expected. If this development continues in the same way,
we expect EBITDA for the full year to be in the region of 670 to 690
million euro. This means we are fully on track with our growth programme
Agenda 2015.'
Development within the divisions
Between January and June, the Patient and Consumer Solutions division
reported revenue of 1,763.6 million euro, 5.0 per cent ahead of the same
period last year (a 1.8 per cent increase in local currency). This growth
was clearly led by revenue in the Retail Pharmacy business area which
increased by 4.1 per cent to 1,619.4 million euro. As of 30 June, Celesio
operated 2,311 retail pharmacies throughout Europe. This is 15 fewer than
on the same date last year. During the first half of 2010, Celesio opened
22 pharmacies (compared with five in the previous year), 19 of them in
Sweden.
Revenue in the Mail-order Pharmacies business area rose even more sharply
than in the Retail Pharmacies - by 16.8 per cent to 142.2 million euro.
Celesio's major mail-order pharmacy, DocMorris, which celebrated its tenth
anniversary in June, significantly improved revenue due to continuing
strong business in prescription medicines.
EBITDA in the Patient and Consumer Solutions division fell in the first
half of the year by 4.4 per cent (7.3 per cent in local currency) to 137.1
million euro. The main reason for this was the fall in EBIDTA in the Retail
Pharmacies business area of 10.8 per cent to 130.9 million euro - which in
turn is a consequence of the expected impact of government savings,
particularly in the first quarter, as well as the cost of developing the
pharmacy chain in Sweden. In the same period last year, EBITDA in this
business area was still feeling the positive one-off effect of the
temporary increase in pharmacy payment in the United Kingdom. The
Mail-order Pharmacies business area generated EBITDA of 6.7 million euro;
the figure of -2.1 million euro in the same period last year was at a time
of spending on advertising activities for Apotheke DocMorris.
The operating business performed well in Celesio's most important pharmacy
market, the United Kingdom, accounting for 62.4 per cent of revenue in the
Retail Pharmacies business area. The main driver here - despite the lower
number of pharmacies - was increasing revenues from medicines subject to
compulsory reimbursement. This increase was not reflected in earnings since
the prices of generic medicines in the United Kingdom, which where reduced
in October 2009, did burden the earnings of pharmacies. Celesio's business
in its second most important pharmacy market, Norway, developed solidly
while in Italy and Ireland government savings from the previous year put
pressure on pharmacies' profitability.
In Sweden, expansion of the DocMorris chain of pharmacies, made possible by
the lifting of the state monopoly on pharmacies last year, progressed
according to plan. Between mid-February and the end of June, 19 DocMorris
pharmacies opened throughout the country.
In July, Celesio took the decision to adjust the brand strategy in the
Patient and Consumer Solutions division to new challenges of the market.
The aim is to optimise brand leadership, expand the franchise business,
strengthen the end customer base and implement additional efficiency
measures. To this end, Celesio will gradually focus on the two pharmacy
brands Lloydspharmacy in the United Kingdom and DocMorris outside the
United Kingdom. Outside the UK, the Patient and Consumer Solutions division
will be managed by the newly formed company DocMorris-International Retail
Centre (IRC).
Revenue of the Pharmacy Solutions division improved significantly in the
first half of 2010 in comparison with the same period last year, rising
10.9 per cent to 9,425.1 million euro (an increase of 8.6 per cent in local
currency). The Wholesale business area contributed revenue of 9,422.5
million euro, a rise of 10.9 per cent. This significant increase was
primarily as a result of including the Brazilian wholesale revenue which
had not been included in the first half of 2009, and positive business
development in both Germany and the United Kingdom.
EBITDA rose even more sharply than revenue, increasing 23.7 per cent to
230.1 million euro (19.4 per cent in local currency) compared with the
previous year. Excluding currency and consolidation effects, the increase
amounted to 4.6 per cent. EBITDA in the remaining business areas fell to
-4.2 million euro (-0.2 million euro in the previous year). In the
Wholesale business area, EBITDA climbed 25.8 per cent to 234.3 million
euro, primarily a result of additional profit contributions from Brazilian
wholesaler Panpharma and positive growth in operating business.
Consolidation of the wholesalers Panpharma in Brazil and Laboratoria
Flandria in Belgium, which were acquired in 2009, increased our count of
wholesale branches to 132 as of 30 June 2010. This means an increase of 11
compared with 30 June 2009.
During the first six months of the current fiscal year, the Manufacturer
Solutions division generated gross profit of 204.1 million euro compared
with 80.8 million euro in the first half year of 2009. The main reason for
this significant increase was the inclusion of the pharmexx Group which has
been fully consolidated since July 2009 and contributed 115.3 million euro
to the division's gross profit. The Movianto business area increased gross
profit by 9.2 per cent to 87.8 million euro. Gross profit from the other
business areas increased from 0.4 million euro to 1.0 million euro.
The division's 53.1 per cent increase in EBITDA (51.5 per cent in local
currency) to 5.9 million euro was primarily as a consequence of the
positive increases in earnings from the Movianto business area. The
optimisation measures implemented in 2009 had a positive impact on EBITDA,
which saw a sharp increase of 26.5 per cent (25.7 per cent in local
currency) to 6.7 million euro. The pharmexx business area generated EBITDA
of just 1.4 million euro (-0.2 million euro in the previous year), its main
pressure coming from integration and restructuring costs. Development costs
for Evolution Homecare and Celesio Manufacturer Solutions Sales affected in
EBITDA from the other business areas of -2.2 million euro (-1.3 million
euro in the previous year).
Earnings forecast 2010
The management board maintains its optimistic forecast for the fiscal year
2010. If the positive business developments reported in the first half year
2010 continue unabated the second half of the year, Celesio expects to see
group EBITDA of between 670 and 690 million euro for the full year. Celesio
will reap the benefits both from acquisitions in the previous fiscal year
as well as growing organically. Net liabilities will still be reduced to
below 2 billion euro and the most critical financial figures will continue
to improve over the full year. This forecast is based on the assumption
that there will be no significant new regulatory effects or shifts in the
exchange rates of Celesio's major foreign currencies.
Key figures of the Celesio Group
1st half year 1st half year
2009 2010
Revenue EUR m 10,384.1 11,508.6
EBITDA EUR m 296.0 324.5
Earnings
before tax EUR m 189.5 164.3
Net profit EUR m 124.4 98.8
Employees* 38,566 46,984
Retail pharmacies* 2,326 2,311
Wholesale
branches* 121 132
Change on Change in Comparison
a local figures
EUR basis currency 2nd quarter
in % in % 2010
Revenue 10.8 8.4 5,840.3
EBITDA 9.6 5.5 171.3
Earnings
before tax -13.3 -16.9 73.1
Net profit -20.6 -24.9 39.3
* Values refer to the date at the end of the reporting period
1) For the Manufacturer Solutions division, it is absolute gross profit
achieved rather than revenue that is the most critical measure of success.
The background to this is that customers as a rule pay service-related
fees; retail revenue is generated only in exceptional cases.
Press contact:
Rainer Berghausen, Celesio AG, +49 (0)711.5001-549
media@celesio.com
About Celesio Group:
Celesio is one of the leading international service providers within the
pharmaceutical and healthcare markets. The company is active in 27
countries worldwide and employs approximately 47,000 people in its three
divisions Patient and Consumer Solutions, Pharmacy Solutions and
Manufacturer Solutions. Approximately 2,300 of Celesio's own retail
pharmacies, as part of Patient and Consumer Solutions, serve over 600,000
customers every day. In its wholesale activities, which are part of
Pharmacy Solutions, more than 130 wholesale branches deliver to over 65,000
pharmacies - day in, day out. In the Manufacturer Solutions division,
Celesio offers pharmaceutical manufacturers logistics and distribution
solutions and supports them in sales and marketing.
12.08.2010 07:02 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: Celesio AG
Neckartalstr. 155
70376 Stuttgart
Deutschland
Phone: +49 (0)711 5001-735
Fax: +49 (0)711 5001-736
E-mail: investor@celesio.com
Internet: www.celesio.com
ISIN: DE000CLS1001
WKN: CLS100
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Berlin,
Stuttgart, München, Düsseldorf; Freiverkehr in Hannover,
Hamburg; Terminbörse EUREX
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DGAP-News: Celesio AG: Celesio reports significant growth in first half year 2010
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