DGAP-News: Celesio AG: realignment successfully completed and solid basis

| Source: EQS Group AG
DGAP-News: Celesio AG / Key word(s): Quarter Results
Celesio AG: realignment successfully completed and solid basis

12.05.2014 / 07:00


* Adjusted EBIT for the quarter on par with prior year
* McKesson new majority shareholder 
* More rapid realisation of the European Pharmacy Network 
Stuttgart, 12 May 2014. Celesio increased group revenue slightly in the
first quarter of 2014 - by 0.3 per cent to 5,379.5 million euro. After
adjustments for negative currency effects, largely due to the Brazilian
real, revenue increased by 2.1 per cent. Following additional adjustments
for the effects resulting from the changes in the consolidated group, in
particular from the sale of the Irish wholesale business in May 2013,
revenue actually increased significantly by 3.3 per cent. Earnings before
interest and taxes (EBIT) fell by 6.9 per cent from 95.1 million euro to
88.6 million euro. After adjustments for special effects, EBIT was 95.6
million euro and therefore 0.5 per cent higher than the prior year's
figure. Following further adjustments for currency effects, adjusted EBIT
fell by 0.7 per cent. The good performance in the United Kingdom made a
significant contribution to offsetting the earnings situation, which
continued to be weighed down by the persistently fierce discount war in the
German wholesale business. At 43.1 million euro, net profit for the period
was 4.2 per cent up on the same period of the prior year.
Marion Helmes, Speaker of the Management Board and CFO of Celesio: "The
fact that the business development in the first three months was as planned
is proof that our realignment has been a success. With this development we
have established a solid basis for further growth. Over the coming months,
we will focus our efforts on implementing our initiatives Top-in-Class
procurement and optimising the value chain, as well as on the more rapid
realisation of the European Pharmacy Network, as announced. The opportunity
for joint global purchasing with McKesson will mean we can realise
additional synergy potential."

Performance in the divisions

The Consumer Solutions division, the pharmacy business, generated revenue
of 865.6 million euro and was therefore up by 4.5 per cent compared to the
prior year's value of 828.0 million euro. Our business in the United
Kingdom made a particularly positive contribution to the increase in
revenue. After adjustments for currency effects, revenue increased by as
much as 4.7 per cent. The EBIT of the division increased sharply by 10.4
per cent from 47.8 million euro to 52.8 million euro.

In the United Kingdom, Celesio's most important pharmacy market,
Lloydspharmacy performed well in the past quarter, as expected. The
increase in services, particularly in contracts with hospitals and the
provision of homecare as well as higher sales of generic drugs
overcompensated for the negative effects of government measures. Central
purchasing activities also improved earning power.

Revenue for the Pharmacy Solutions division - responsible for our wholesale
business - fell slightly, down 0.4 per cent from the prior-year figure to
4,513.9 euro. Currency effects, mainly caused by the Brazilian real, as
well as the deconsolidation of the Irish wholesale business in May 2013,
had an adverse impact on business development in the reporting period.
After adjustments for currency effects, revenue increased by 1.6 per cent.
By contrast, following additional adjustments for the effects resulting
from the change in the consolidated group, from the sale of the Irish
wholesale business, , in particular, revenue increased sharply by 3.1 per
cent. EBIT dropped by 6.6 per cent compared with the prior-year period to
65.1 million euro. After adjustment for currency effects, EBIT fell by 8.1
per cent. The fall is above all attributable to the problems caused by the
further intensification in the discount competition in Germany compared
with the prior-year period. The market continued to decline in France.
However, we succeeded in compensating for these negative effects through
consistently applied measures to increase efficiency. British wholesale
activities posted a significant increase in revenue following higher sales
of generic drugs. Here, the more favourable product mix, together with
better purchasing and additional efficiency increases, contributed to a
gratifying rise in earnings.

Earnings forecast

For Celesio, 2014 is all about consistently pursuing its strategic new
direction.  Continuous improvements will be made to optimise companies'
levels of efficiency, in addition to the optimisation of cost structures.
The expansion of the European Pharmacy Network will also have a positive
impact, enabling even stronger growth from 2015 onwards.
Based on the assumption of a slight deterioration in exchange rates,
similar interest rates and a comparable consolidated group, the Management
Board expects to achieve an adjusted EBIT for the 2014 fiscal year that is
slightly above the prior year. The earnings situation will be significantly
affected by future developments on the German wholesale market. From the
second half of the year, the Management Board assumes that the
unremittingly intensive discount competition in Germany will diminish in
the course of the year.

Key figures of the Celesio Group

                                           1st quarter         1st quarter
                                                  2013                2014
Revenue                      EUR m             5,361.6             5,379.5
EBITDA                       EUR m               126.6               118.0
adjusted 1)                  EUR m               126.6               125.0
EBIT                         EUR m                95.1                88.6
adjusted 1)                  EUR m                95.1                95.6
Net profit/loss              EUR m                41.7                44.0
adjusted 1)                  EUR m                41.7                51.0
Free cash flow               EUR m               -82.2              -186.7
Net profit/loss              EUR m                -0.3                -0.9
Continuing and
Net financial
debt                         EUR m               934.2             1.614.5
Net financial
debt /EBITDA                                      2.86                1.71
Retail pharmacies 2)                             2,178               2,180
branches 2)                                        136                 133
Employees 2)                                    38,650              38,581
Net profit/loss              EUR m                41.4                43.1
Earnings per share
(basic)                        EUR                0.23                0.22

                                                   EUR basis

Revenue                          EUR m                   0.3
EBITDA                           EUR m                  -6.9
adjusted 1)                      EUR m                  -1.3
EBIT                             EUR m                  -6.9
adjusted 1)                      EUR m                   0.5
Net profit/loss                  EUR m                   5.3
adjusted 1)                      EUR m                  22.2
Free cash flow                   EUR m
Net profit/loss                  EUR m
Continuing and
Net financial
debt                             EUR m                 -42.1
Net financial
debt /EBITDA
Retail pharmacies 2)
branches 2)
Employees 2)
Net profit/loss                  EUR m                   4.2
Earnings per share
(basic)                            EUR                  -3.7

1) Adjusted for special effects from certain non-recurring expenses and
income (including tax effect).
2) Closing figures at the end of the reporting period.

About Celesio Group
Celesio is a leading international wholesale and retail company and
provider of logistics and services to the pharmaceutical and healthcare
sectors. The proactive and preventive approach ensures that patients
receive the products and support that they require for optimum care. With
some 39,000 employees, Celesio operates in 14 countries around the world.
Every day, the group serves over 2 million customers - at 2,200 pharmacies
of its own and 4,200 participants in brand partnership schemes. With
approximately 130 wholesale branches, Celesio supplies 65,000 pharmacies
and hospitals every day with up to 130,000 pharmaceutical products. The
services benefit a patient pool of about 15 million per day.

End of Corporate News


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Language:    English                                                    
Company:     Celesio AG                                                 
             Neckartalstr. 155                                          
             70376 Stuttgart                                            
Phone:       +49 (0)711 5001-735                                        
Fax:         +49 (0)711 5001-740                                        
E-mail:      investor@celesio.com                                       
Internet:    www.celesio.com                                            
ISIN:        DE000CLS1001, DE000CLS1043                                 
WKN:         CLS100, CLS104                                             
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  
267675 12.05.2014