SHOP APOTHEKE EUROPE 2022: RECORD SALES OF EUR 1.2 BILLION AND SIGNIFICANTLY IMPROVED MARGINS IN THE SECOND HALF OF THE YEAR.

SHOP APOTHEKE EUROPE 2022: RECORD SALES OF EUR 1.2 BILLION AND SIGNIFICANTLY IMPROVED MARGINS IN THE SECOND HALF OF THE YEAR.

• Group sales up 14% to EUR 1.2 billion in 2022.
• Full year guidance provided at the start of 2022 met in all elements; non-Rx growth 17.2%, adj. EBITDA margin -0.3%.
• Adj. EBITDA margin in Q4 0.3% (for ongoing operations 0.8%, up 430 bps vs. Q4 2021).
• Active customer base 9.3 million (up 1.4 million vs. 2021) with 83% of total orders coming from returning customers.
• Guidance for the new year 2023: Free cash flow +/- 0, and continued fast organic-driven growth of 10% to 20% for non-Rx (full guidance details below).

Sevenum, the Netherlands, 7 March 2023. SHOP APOTHEKE EUROPE N.V. recorded a solid performance in 2022, fully meeting both the top and bottom line guidance provided for the year. Total sales rose at a faster rate of 13.6% year over year to EUR 1.2 billion in 2022, compared to the previous year’s 9.5% growth, with both the DACH and International segments recording double digit sales growth. Non-Rx sales grew by 17.2% year over year to EUR 1.07 billion. The adjusted EBITDA margin for ongoing business operations reached   -0.3% (total Group adjusted EBITDA: -0.7%) with Q3 (0.9%) and Q4 (0.8%) both in positive territory. SHOP APOTHEKE EUROPE continued to increase its base of active customers significantly in 2022 – up 1.4 million – ending the year with a record of 9.3 million. Customer satisfaction measured by the net promoter score (NPS) increased significantly too – from 68 in 2021 to 72 – improving also on 2020’s NPS of 70.

SHOP APOTHEKE EUROPE’s CEO Stefan Feltens comments: “Against the backdrop of a very unstable world, our company’s performance showed resilience in 2022. We achieved double-digit organic growth, more efficiency, significant market share gains and very high customer satisfaction. It was a successful year for us in many additional aspects. We made progress in extending our strategic position and platform offering. We also strengthened the sustainability of the business by meeting our CO2 reduction target three years ahead of time, and launched our new NET ZERO strategy. Last but not least, improvements in our corporate governance and product carbon footprint scores reinforced our MSCI AA rating.”

Gross profit increased by 24.5% year over year to EUR 331.8 million in 2022 (2021: EUR 266.5 million). The consolidated gross margin as a percentage of revenue improved from an adjusted 25.2% to 27.5%, reflecting a range of actions taken, including better sourcing and mix. In addition, a negative effect that was related to the Corona assortment in 2021 did not re-occur in 2022.    

Adjusted selling and distribution (S&D) expenses for the Group increased to EUR 298.8 million (2021: EUR 239.6 million) or 24.8% of revenue, compared to 22.6% in 2021. For ongoing business operations, adjusted S&D expenses were 24.5% of revenue. In the first half of 2022, expenses were impacted by the opening of the new distribution centre in Italy. In H2, the positive impact of measures taken to reduce costs and improve efficiencies became increasingly visible.

The Group’s adjusted administrative expenses for 2022 rose to EUR 41.2 million (2021: EUR 32.7 million). This is equivalent to 3.4% of revenue and for ongoing business operations 3.3% (2021: 3.1%).

The adjusted EBITDA for the Group was EUR -8 million in 2022 (2021: EUR -5.3 million), a margin of -0.7%. The adjusted EBITDA for ongoing business operations was EUR -3.7 million, or a margin of -0.3%. Following depreciation of EUR 39.5 million (2021: EUR 27 million), EBIT was EUR -69.2 million compared to EUR -65.7 million in 2021.  After net financing costs and tax, the Group recorded a net loss of EUR 77.5 million (2021: EUR -74.2 million). In Q4, the net loss was EUR 9.6 million, an improvement of EUR 32.9 million versus EUR -42.5 million in the fourth quarter of 2021.

Cash of operating activities was EUR -29.1 million (2021: EUR 11.6 million). Investments – excluding short-term cash investments – were EUR 59.7 million (2021: EUR 87 million). At year-end 2022, the total cash and cash equivalent balance was EUR 180.1 million.  

Double digit year over year growth in both DACH and International segments.  

In 2022, the Group’s DACH segment, comprising Germany, Austria and Switzerland, recorded an improved sales growth of 11% (2021: 3.9%) to EUR 940.2 million (2021: EUR 847.2 million). Rx sales for the full year were 9.4% lower than the prior year (2021: -34.6%) but started growing again in the second half of 2022. Non-Rx sales grew by double digits (15.1%). Although the DACH segment accounts for a significant portion of Group sales – 78% in 2022 compared to 80% in 2021 – growth in the International segment’s non-Rx sales is slowly shifting the balance. The gross profit margin for the DACH segment improved by 3.2 pp to 27.8% from 24.6% the previous year. Adjusted EBITDA was EUR 17.8 million, leading to an improved margin of 1.9% (2021: EUR 12.9 million and 1.5% margin).

Sales in the International segment (Belgium, the Netherlands, France and Italy) grew by 23.9%, from EUR 213.2 million to EUR 264.2 million, thus accounting for 22% of Group sales in 2022. The gross margin was 26.6%, or 0.7 pp lower than the previous year (2021: 27.3%). Adjusted EBITDA in 2022 was EUR -25.9 million.

Strategic and ESG achievements in 2022.

The fiscal year 2022 was marked by a considerable number of strategic achievements at SHOP APOTHEKE EUROPE. The successful opening of a new distribution centre in Milan to strengthen the customer proposition for Italy, led to a significant improvement in delivery times and customer satisfaction. The Italian web shop was rebranded Redcare in the summer of 2022 to further improve the proposition in this large and fast-growing market. 

In the DACH region, SHOP APOTHEKE EUROPE’s marketplaces continued to grow. A marketplace with over 40,000 products was launched for Austria, while the marketplace assortment for Germany was broadened to over 60,000 health-related products.

With the acquisition of the quick-commerce company GoPuls – previously known as First A – SHOP APOTHEKE EUROPE also expanded its offering in the German pharmacy market. The addition of a quick delivery option within 30 minutes supplements the existing same-day delivery option provided through SHOP APOTHEKE NOW! as well as the standard delivery option (within one to two days). This ensures the coverage of more use-cases. It is also a unique and comprehensive offering that strengthens the competitiveness of SHOP APOTHEKE EUROPE, especially in the context of the e-Rx opportunity.

In 2022, the Group completed its conversion of logistics sites to 100% renewable energy, meeting the 2025 target ahead of schedule. It plans to supply all international locations with 100% renewable electricity by the end of 2023. To mark its next major step towards increased sustainability, SHOP APOTHEKE EUROPE publicly committed itself in 2022 to bring emissions along the entire value chain, including product emissions, to net zero by 2040. 

CFO of SHOP APOTHEKE EUROPE Jasper Eenhorst comments: “Execution is set to further improve in 2023, given both increased operational efficiency and scale, as well as our continued focus on fast, healthy growth in the giant e-pharmacy opportunity across our markets. We expect a positive adjusted EBITDA margin and a free cash flow of plus-minus zero while continuing to grow organically by double digits.”

Financial guidance for 2023.

The guidance provided by the management of SHOP APOTHEKE EUROPE for full year 2023 is as follows:

• Non-Rx sales growth in the range of 10% to 20%.
• Adjusted EBITDA margin in the range of 0.5% to 2.5%.
• Free cash flow (defined as cash flow from operating and investing activities) of EUR    -20 million to EUR 20 million.

The full Annual Report can be downloaded here:

https://corporate.shop-apotheke-europe.com/en/investorrelations/publikationen/

 
Summary 2022

2022 Consolidated

in EUR M Q1 Q2 Q3 Q4 Full Year Net Sales 304.8 287.2 284.5 327.8 1204.4  Growth (%) 7.3 14.7 19.6 13.8 13.6 Non-Rx Sales 274.7 254.5 251.6 293.8 1074.4  Growth (%) 14.8 17.6 22.0 15.2 17.2 Rx Sales 30.1 32.7 32.9 34.1 130.0  Growth (%) -32.6 -3.8 3.9 3.0 -9.4 EBITDA -10.5 -12.6 -5.9 -0.6 -29.6 adj. EBITDA -4.3 -6.1 1.3 1.1 -8.0 adj. EBITDA for ongoing business -4.3 -4.8 2.7 2.8 -3.7  as percentage of sales -1.4 -1.7 0.9 0.8 -0.3

 

2022 DACH

in EUR M Q1 Q2 Q3 Q4 Full Year Net Sales 235 220.4 223.7 261.1 940.2  Growth (%) 1.9 11.2 18.1 14.1 11.0 EBITDA -1.3 -2.8 1.8 7.1 4.8 adj. EBITDA 2.4 1.1 6.2 8.1 17.8 adj. EBITDA for ongoing business 2.4 2.4 7.6 9.8 22.2  as percentage of sales 1.1 1.1 3.4 3.8 2.4

 

2022 International

in EUR M Q1 Q2 Q3 Q4 Full Year Net Sales 69.8 66.9 60.8 66.7 264.2  Growth (%) 30.9 28.0 25.5 12.8 23.9 EBITDA -9.2 -9.8 -7.8 -7.7 -34.5 adj. EBITDA -6.7 -7.2 -4.9 -7.0 -25.9 adj. EBITDA for ongoing business -6.7 -7.2 -4.9 -7.0 -25.9  as percentage of sales -9.8 -10.8 -8.1 -10.4 -9.8

  

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, over 9 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 full 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.