DGAP-News: Celesio AG / Key word(s): Half Year Results
Celesio AG: Celesio achieves double-digit increase in operating
earnings and 'clears the decks' in half-year balance sheet
14.08.2012 / 07:00
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Celesio achieves double-digit increase in operating earnings and 'clears
the decks' in half-year balance sheet
* Stabilisation measures are taking effect: adjusted operating earnings
climbed by 10.1 per cent to 283.5 million euro
* Earnings forecast for 2012 reiterated
* Necessary impairments made on companies which will be sold
Stuttgart, 14 August 2012. The strategic realignment measures implemented
at Celesio, a leading international trading company and provider of
logistics and services in the pharmaceutical and healthcare sector, are
making an increasingly positive contribution to the group's operating
performance. Following earnings declines seen in previous years and
particularly in 2011, Celesio managed to raise both revenue and earnings in
the first-half year of 2012. On revenue of 11.25 billion euro (plus 1.8 per
cent), adjusted operating earnings (EBITDA) increased by 10.1 per cent to
283.5 million euro. In context with announcing the half-year figures,
Celesio also communicated today that its wholesale and retail activities in
the Czech Republic will be sold for a combined purchase price of 84.5
million euro to Penta Investments. The closings of the transactions are
individually subject to approval by the antitrust authority of the Czech
Republic. Impairment losses totalling 228.0 million euro were considered
pertaining to this business as well as the earlier divestments of Movianto
and Pharmexx, the planned sale of DocMorris and the sale of the wholesale
business in Ireland which is being considered. Celesio had paid high
strategic prices for past acquisitions in context with the former strategy,
especially for DocMorris, Pharmexx and Movianto, which are no longer
attainable in the current market environment. Mainly due to these one-off
effects, the first-half year of 2012 noted a loss of 183.9 million euro.
Based on the positive development in the operating business, Celesio
confirms its earnings forecast for 2012 with an adjusted EBITDA at least at
the prior-year level.
'Our stabilisation measures are taking effect, Celesio's operating business
is back on track despite the persistently difficult market environment,'
Celesio CEO Markus Pinger emphasises. 'Strategically, we have also made
considerable progress. We have managed to sell Movianto, Pharmexx and our
activities in the Czech Republic earlier than originally anticipated. We
can now focus more strongly on accelerating growth in our core business.
Our new group structure will also boost Celesio's positive development
through considerable synergy effects. Moreover, we have cleaned the decks
in our half-year balance. We are implementing our strategy on a
step-by-step basis.'
In the first-half year, impairment losses were considered totalling 228.0
million euro for the divestments of Movianto, Pharmexx and the Czech
wholesale and retail business as well as for the pending disposals of the
investments in DocMorris and the wholesale business in Ireland. Celesio CFO
Marion Helmes states: 'We had paid prices for some of the companies that
were largely based on strategic expectations. We will not be able to attain
these prices in today's market environment and also because of the current
business development of the companies. This is why we have now made all of
the necessary impairments on companies which will be sold.'
Celesio's positive operating development is also reflected in an increase
in profitability. The adjusted EBITDA margin climbed from 2.3 to 2.5 per
cent compared to the previous year. 'This is also driven by the Operational
Excellence Programme with which we were already able to realise efficiency
gains and cost savings in the first months,' Marion Helmes emphasises. '
The Patient und Consumer Solutions division improved adjusted EBITDA before
one-off effects by 36.8 per cent to 132.2 million euro. Revenue increased
by 6.5 per cent to approximately 1.72 billion euro. The positive earnings
development was primarily driven by a strong services and OTC business in
the UK. The pharmacy business in Norway and Sweden also showed a positive
development.
Adjusted EBITDA in the Pharmacy Solutions division of 197.3 million euro
fell 5.1 per cent short of the prior-year level. Revenue increased slightly
by 1 per cent to 9.53 billion euro. The strong development in Germany as
well as effects from the Oncoprod acquisition, the leading distributor of
speciality pharmaceuticals in Brazil, were, however, not strong enough to
offset burdens related to competitive pressure and regulatory intervention,
mainly in France and the UK.
Earnings forecast
In financial year 2011, EBITDA adjusted for restructuring charges amounted
to 578.3 million euro. In order to be able to compare financial year 2011
with financial year 2012, the EBITDA for 2011 needs to be adjusted for the
earnings contributions of discontinued operations - Movianto, Pharmexx,
DocMorris - as well as for the investment result, which from 2012 is
considered in the financial result (and not in EBITDA or EBIT). On this
like-for-like basis, EBITDA in financial year 2011 amounted to 549.7
million euro.
Celesio confirmed its earnings forecast for financial year 2012 and expects
to be able to achieve adjusted EBITDA of at least 550 million euro which
would, at the least, correspond to the level reached in financial year
2011.
Key figues of the Celesio Group
1st half year 1st half year
2011 2012
Continuing
Operations
Revenue EUR m 11,056.6 11,251,1
EBITDA EUR m 257.5 234.1
adjusted 1) 3) EUR m 257.5 283.5
EBIT EUR m 153.2 167.5
adjusted 1)3)4) EUR m 197.5 217.2
Net profit/loss EUR m 37.0 29.6
adjusted 1) 3)4)5) EUR m 88.7 106.0
Employees
(headcount 6) 46,448 45,448
Retail Pharmacies 6) 2,290 2,233
Wholesale
branches 6) 133 141
Discontinued
Operations
Net profit/loss EUR m -67.2 -213.5
Continuing and
discontinued
operations
Net profit/loss EUR m -30.2 -183.9
Change Change
on a adjusted for
EUR basis portfolio and
currency
effects 2)
% %
Revenue EUR m 1.8 -0.9
EBITDA EUR m -9.1 -7.4
adjusted 1) 3) EUR m 10.1 3.7
EBIT EUR m 9.4 -11.7
adjusted 1)3)4) EUR m 10.0 2.9
Net profit/loss EUR m -20.1 ---
adjusted 1) 3)4)5) EUR m 19.5 ---
Employees --- ---
(headcount 6) --- ---
Retail Pharmacies 6) --- ---
Wholesale
branches 6) --- ---
Discontinued
Operations
Net profit/loss EUR m >=100 ---
Continuing and
discontinued
operations
Net profit/loss EUR m >=100 ---
1) Adjusted for non-recurring effects (including tax effect) primarily in
connection with the Operational Excellence Programme
2) The change adjusted for portfolio and currency effects (organic growth)
eliminates the effects of currency translation, consolidated group changes
(elimination of all units that were not already consolidated as of 1
January of the previous year) and gains/losses on disposal
3) Adjusted for special effects from remeasurement pursuant to IFRS 5
(including tax effect)
4) Adjusted for impairment losses recognised on intangible assets
(including tax effect)
5) Adjusted for special effects which are included in the financial result
(including tax effect)
6) Closing figures at the end of the reporting period
Press contact
Dr Jens Schreiber, Celesio AG, +49 (0)711.5001-380
media@celesio.com
Rainer Berghausen, Celesio AG, +49 (0)711.5001-549
media@celesio.com
About Celesio Group
Celesio is a leading international trade, logistics and service company
working in the pharmaceutical and healthcare sector that proactively and
preventatively ensures that patients receive optimum care and support. We
operate in 27 countries worldwide and employ around 45,000 people. With
more than 2,200 of our own and 4,500 partner and brand partner pharmacies,
we look after more than two million customers daily. We supply around
65,000 pharmacies and hospitals with up to 130,000 medications through our
approximately 140 branches.
End of Corporate News
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Language: English
Company: Celesio AG
Neckartalstr. 155
70376 Stuttgart
Germany
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 Berlin, Düsseldorf, Frankfurt (Prime
Standard), München, Stuttgart; Freiverkehr in Hamburg,
Hannover; Terminbörse EUREX
End of News DGAP News-Service
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181507 14.08.2012
DGAP-News: Celesio AG: Celesio achieves double-digit increase in operating earnings and 'clears the decks' in half-year balance sheet
| Source: EQS Group AG