DGAP-News: Celesio AG / Key word(s): Half Year Results
Celesio AG: Celesio: Operational performance in H1 2014 in line with
expectations
31.07.2014 / 07:00
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Celesio: Operational performance in H1 2014 in line with expectations
- Revenue growth of 1.8 per cent achieved
- Decrease in adjusted EBIT of 1.7 per cent due to the discount
competition in Germany and the unfavourable performance in Brazil
Stuttgart, 31 July 2014. The course of business of Celesio AG met
expectations in the first half of 2014. At EUR 10,930.8 million, group
revenue was 1.8 per cent higher year-on-year. Adjusted for currency effects
and changes in the consolidated group, revenue actually increased by 3.9
per cent. The market growth in Germany and the strong performance in Norway
and the United Kingdom offset the fall in revenue in France and Belgium.
Nevertheless, adjusted earnings before interest and taxes (EBIT) fell by
1.7 per cent, to EUR 199.1 million. This is due in particular to the
ongoing intense pressure from competition in Germany and the unfavourable
performance in Brazil. As reported, impairments of EUR 80 million have been
taken in Brazil due to an adjustment in the long-term earnings outlook. In
the first half year net financial debt decreased by EUR 310.0 million, to
EUR 1,053.4 million, which is particularly attributable to the conversion
of the 2014 and 2018 convertible bond.
"All in all, despite strong headwinds, Celesio maintained its course well
in the first half of 2014. We expect this trend to continue for the rest of
the year," said Marc Owen, new Chairman of the Management Board of Celesio
AG. "As our relationship with McKesson evolves, it is our prime goal to
ensure that not just Celesio, but also all its partners, customers and
employees benefit as quickly as possible from the added value generated by
joint procurement with McKesson and an extended product range."
Performance in the divisions
Revenue in the Consumer Solutions division, which is responsible for the
pharmacy business, increased by a significant 6.0 per cent, from EUR
1,680.4 million to EUR 1,781.2 million. Adjusted for currency effects,
revenue increased by 5.4 per cent.
Adjusted for non-recurring items, EBIT was up by a substantial 11.9 per
cent, to EUR 106.8 million (unadjusted: -6.4 per cent). When also adjusted
for currency effects, EBIT rose by 11.5 per cent.
In the United Kingdom, Celesio's most important pharmacy market,
Lloydspharmacy performed well in line with expectations in the first half
of 2014. The revenue increase in services, predominantly in contracts with
hospitals and the provision of homecare, more than compensated for the
negative effects of governmental measures and increased costs in connection
with the accelerated expansion of the European Pharmacy Network. Central
purchasing activities also improved earning power.
The course of business in Italy increasingly benefited from revenue and
earnings from non-prescription products, which completely offset the
decline in revenue from prescription medications due to continued
government cutbacks. In the Swedish pharmacy business, higher revenue had a
disproportionately high impact on earnings as a result of the simultaneous
improvement in cost management.
Revenue for the Pharmacy Solutions division - responsible for our wholesale
business - amounted to EUR 9,149.6 million, 1.1 per cent up on the
prior-year figure of EUR 9,052.7 million. In particular, currency effects
caused by the Brazilian real and the deconsolidation of the Irish wholesale
business in May 2013 had an adverse impact on performance in the reporting
period. After adjustment for currency effects, revenue increased by 2.6 per
cent. However, when also adjusted for the effects of changes in the
consolidated group, revenue increased by a significant 3.7 per cent.
EBIT dropped 65.5 per cent in the first half of 2014, from EUR 153.2
million to EUR 52.8 million. The decrease in earnings is predominantly
related to the extraordinary impairment loss on the goodwill of the
Brazilian activities. Adjusted for non-recurring items, EBIT fell 9.1 per
cent, to EUR 138.9 million. When also adjusted for currency effects, EBIT
sank by 10.2 per cent.
In the British wholesale business, a more favourable product mix, coupled
with better purchasing conditions and additional efficiency increases, led
to a gratifying increase in earnings. The market continued to decline in
France. Rigorously applied measures to increase efficiency did not fully
offset these negative effects. In Germany, both the further intensification
in discount competition and higher sales of high-end products with lower
gross profit margins weighed on results. In Brazil, earnings power was
dampened by the extraordinary impairment loss on goodwill, despite revenue
growth having been achieved.
Earnings forecast
Celesio will consistently pursue the group's strategic realignment in 2014.
Both cost structures and company efficiency will continue to be optimised.
The expansion of the European Pharmacy Network will also have a positive
impact, enabling even stronger growth from 2015 onwards. However, these
revenues will still be reduced in part by IT project costs in 2014.
Overall, adjusted EBIT for the 2014 fiscal year is expected to be slightly
higher than that of the prior year.
<pre>
Key figures of the 1st half of 1st half of Change
Celesio Group 2013 2014 on a euro
basis %
Continuing operations
EUR m 10,733.0 10,930.8 1.8
Revenue
EUR m 267.5 235.1 -12.1
EBITDA
EUR m 266.7 260.9 -2.2
adjusted1)
EUR m 202.9 70.4 -65.3
EBIT
EUR m 202.5 199.1 -1.7
adjusted1)
EUR m 87.8 -15.0 /
Net profit/loss
EUR m 87.5 107.2 22.5
adjusted1)
EUR m
Free cash flow -14.2 -307.6 >-100
Discontinued operations
EUR m -2.4 -0.8 66.7
Net profit/loss
Continuing and
discontinued operations
EUR m 1,363.42) 1,053.43) -22.7
Net financial debt
2.52) 1.93) /
Net financial debt/
EBITDA adj. 1) 4)
2,177 2,188 /
Retail pharmacies3)
132 133 /
Wholesale branches3)
38,407 38,623 /
Employees3)
EUR m 85.4 -15.8 /
Net profit (for the
period)
EUR 0.48 -0.09 /
Earnings per share
(basic)
</pre>
1) Adjusted for non-recurring effects from defined non-recurring expenses
and income (including tax effect).
2) Closing figures as of 31 December 2013.
3) Closing figures at the end of the reporting period.
4) Based on EBITDA of the last twelve months.
Press contact
Marc Binder, Celesio AG, +49 (0)711.5001-380.
media@celesio.com.
Rainer Berghausen, Celesio AG, +49 (0)711.5001-549.
media@celesio.com.
Investor Relations
Markus Georgi, Celesio AG, +49 (0)711.5001-1208.
investor@celesio.com.
Michael Otto, Celesio AG, +49 (0)711.5001-635
investor@celesio.com
Creditor Relations
Marcus Hilger, Celesio AG, +49 (0)711.5001-532
finance@celesio.com
Tobias Mommertz, Celesio AG, +49 (0)711.5001-395
finance@celesio.com
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
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 4,300 participants in brand partnership schemes. With around 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.
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Language: English
Company: Celesio AG
Neckartalstr. 155
70376 Stuttgart
Germany
Phone: +49 (0)711 5001-735
Fax: +49 (0)711 5001-740
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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280109 31.07.2014
DGAP-News: Celesio AG: Celesio: Operational performance in H1 2014 in line with expectations
| Source: EQS Group AG