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Zur Rose Group accelerates growth in third quarter 2020

EQS Group-News: Zur Rose Group AG / Key word(s): Quarterly / Interim Statement
21.10.2020 / 06:50

Press release

Zur Rose Group accelerates growth in third quarter 2020

- Revenue growth of 15.3 per cent in third quarter and considerable increase quarter-on-quarter

- Number of active customers across the Group rises to 9.8 million

- Share of the online pharmacy market in Germany rises to 43 per cent

- First shop-in-shop pharmacy opened in French-speaking Switzerland

- Implementation of the platform strategy moving ahead rapidly

- Market launch of full-service infrastructure for e-prescriptions in Germany

- Full year outlook confirmed


In the third quarter of 2020 the Zur Rose Group generated revenue of CHF 435.3 million (including Medpex and Apotal[1]), equivalent to a significant 15.3 per cent rise in local currency terms. The Group also saw a considerable increase in growth from the subdued previous quarter, which was affected by the coronavirus. Revenue for the first nine months of 2020 came to CHF 1,245.2 million, giving growth of 11.2 per cent in local currency terms. Compared to the previous quarter, the number of active customers at the Zur Rose Group[2] rose by 600,000 in the third quarter to 9.8 million. At the same time, the share in the online pharmacy market in Germany increased by 7 per cent to 43 per cent as a result of the acquisition of Apotal.

Considerable growth in all markets
All three segments - Germany, Switzerland and Europe - posted considerable year-on-year growth in revenue in the third quarter. Despite the deliberate reduction of marketing activities for paper prescriptions until e-prescriptions are brought in, the Group managed to boost revenue in Germany by 18.1 per cent in local currency terms (including Medpex and Apotal). For the first nine months, growth was 11.7 per cent in local currency terms. In the Swiss home market, Zur Rose achieved revenue growth of 7.3 per cent in the third quarter and 6.1 per cent in the first nine months, considerably ahead of the growth in the market. The marketplace business in the Europe segment is growing very rapidly in general and reported revenue up 59.7 per cent in local currency terms in the third quarter and 79.2 per cent in the first nine months.

Zur Rose and Medbase open the first shop-in-shop pharmacy in French-speaking Switzerland
Zur Rose and Medbase, the Migros healthcare provider, are continuing to roll out the shop-in-shop concept with a focus on French-speaking Switzerland. In December 2020 the joint venture partners will open their first shop-in-shop pharmacy in western Switzerland in the Migros supermarket in Crissier in the canton of Vaud. Zur Rose is keen to use the presence in French-speaking Switzerland to expand its mail-order business there as well.

Rapid implementation of the platform strategy in Germany and Switzerland
Patients are increasingly acting as the driver of digital development (especially given the background of the current COVID-19 pandemic) and demanding new ways of interacting. One clear sign of this trend is the increased number of telemedical consultations at TeleClinic, which was acquired at the end of July. In the third quarter of 2020, Germany's largest provider of telemedicine saw doctors' consultations rise fivefold to around 18,000. Digital medical services are clearly meeting a rising patient need.

This is one more reason why the Zur Rose Group is continuing to drive forwards its digital ambitions. The launch of a first version of the DocMorris marketplace app is scheduled for the fourth quarter. The app eventually allows customers to choose whether to redeem their electronic prescriptions at a local pharmacy or online and enjoy further user-friendly applications ranging all the way to telemedical services as a major element of the healthcare platform. At the same time, pharmacy partners are able to offer their products and services, giving them easy, direct access to e-commerce. The intention is also to launch the marketplace model in Switzerland under the Zur Rose brand in 2021.

Again focusing on customer needs, in September 2020 Zur Rose launched the new digital medicines assistant Medi+ in Switzerland, jointly with health insurer KPT. Medi+ supports patients in taking and dealing with their medicines, helping to increase patient safety and avoid incorrect medication and the associated follow-up costs.

eHealth-Tec launches full-service infrastructure for electronic prescriptions
Zur Rose subsidiary eHealth-Tec fully completed the technical expansion of its eRx infrastructure during the third quarter. The use of cutting-edge authentication procedures for all eRx users and end-to-end encryption mean the eHealth-Tec solution meets the highest security requirements. Use of the server infrastructure of regio iT GmbH based in Aachen, one of the largest municipal IT service providers and a proven expert in handling citizen and customer data, ensures full confidentiality and availability. regio iT also acts as the Trust Center that securely administers the QR codes and associated encryption. In terms of functionality, the eRx infrastructure fully maps the intended structure of gematik (the software service provider of the Federal Ministry of Health) and is already available to doctors, patients and pharmacies. The technical connection to the medatixx practice software has been completed and the roll-out to doctors has taken place. Statutory health insurance will therefore see a steady rise in eRx volumes over the next few months though the "e-prescription Germany" pilot project being run by Techniker Krankenkasse and the participating statutory health insurers. Electronic prescriptions from private health insurers can now be used by patients across the entire supply chain from doctor to pharmacy. The multi-app facility in the eHealth-Tec solution also allows additional partners to be connected quickly and smoothly.

"By focusing on driving ahead the platform strategy with the eHealth-Tec e-prescription solution, which is being used by various healthcare players in model projects, and with almost 10 million active customers, we are well positioned as Europe's largest online pharmacy to successfully implement the long-term growth strategy", emphasises Walter Oberhänsli, CEO of the Zur Rose Group.

Outlook
The Zur Rose Group confirms the outlook for the full year 2020. Including the sales of medpex, Apotal and TeleClinic, management is expecting growth of more than 10 per cent for the full year 2020. The expectation is to break even at the adjusted EBITDA level in 2020 before expenditure on additional growth initiatives, especially in electronic prescriptions and European opportunities. From next year onwards the Group expects considerable growth in prescription drugs and confirms the medium-term revenue outlook of more than CHF 3 billion. The medium-term EBITDA margin target, adjusted for growth initiatives, is around 8 per cent. The mandatory introduction of electronic prescriptions from 2022 and the implementation of the healthcare eco-system are also creating relevant potential for revenue and profit.

Revenue, in CHF thousands (unaudited) 1.7.-30.9.2020 1.7.-30.9.2019 Change
Zur Rose Group including Medpex/Apotal 435,260 385,482 12.9%
Zur Rose Group including Medpex/Apotal, in local currency 444,382 385,482 15.3%
Zur Rose Group 368,456 331,985 11.0%
Zur Rose Group, in local currency 375,389 331,985 13.1%
Markets      
Germany including Medpex/Apotal 274,659 239,594 14.6%
Germany including Medpex/Apotal, in local currency 258,142 218,646 18.1%
Germany 207,855 186,097 11.7%
Germany, in local currency 195,355 169,864 15.0%
Switzerland 146,099 136,209 7.3%
Rest of Europe 15,566 10,059 54.7%
Europe, in local currency 14,630 9,159 59.7%
Business models      
B2C including Medpex/Apotal 309,305 271,628 13.9%
B2C 242,501 218,131 11.2%
Professional Services 111,453 104,175 7.0%
Marketplace 15,566 10,059 54.7%
 

 

Revenue, in CHF thousands (unaudited) 1.1.-30.9.2020 1.1.-30.9.2019 Change
Zur Rose Group including Medpex/Apotal 1,245,181 1,156,754 7.6%
Zur Rose Group including Medpex/Apotal, in local currency 1,286,260 1,156,754 11.2%
Zur Rose Group 1,066,453 1,000,346 6.6%
Zur Rose Group, in local currency 1,098,501 1,000,346 9.8%
Markets      
Germany including Medpex/Apotal 765,362 719,679 6.3%
Germany including Medpex/Apotal, in local currency 719,363 643,891 11.7%
Germany 586,634 563,271 4.1%
Germany, in local currency 551,376 503,953 9.4%
Switzerland 434,856 409,792 6.1%
Rest of Europe 47,620 27,916 70.6%
Europe, in local currency 44,758 24,976 79.2%
Business models      
B2C including Medpex/Apotal 866,810 814,372 6.4%
B2C 688,082 657,964 4.6%
Professional Services 333,408 315,099 5.8%
Marketplace 47,620 27,916 70.6%
 

Investors and analyst contact
Christoph Herrmann, Head of Investor Relations
Email: ir@zurrose.com, phone: +41 58 810 11 49

Media contact
Lisa Lüthi, Head of Group Communications
Email: media@zurrose.com, phone: +41 52 724 08 14

Agenda
21 January 2021 Sales 2020
18 March 2021 2020 Full-Year Results
20 April 2021 First Quarter Trading Update
29 April 2021 Annual General Meeting

Zur Rose Group

The Swiss Zur Rose Group is Europe's largest e-commerce pharmacy and one of the leading medical wholesalers in Switzerland. It also operates the leading marketplace in southern Europe for consumer health, beauty and personal care products commonly sold in pharmacies. The company is internationally present with strong brands, including Germany's best-known pharmacy brand DocMorris. Zur Rose employs more than 1,800 people at sites in Switzerland, Germany, the Netherlands, Spain and France. In 2019 it generated revenue of CHF 1,569 million (including medpex) and currently has around ten million active customers in core European markets.

With its business model, the Zur Rose Group offers high-quality, safe and cost-effective pharmaceutical care. It is also characterized by the continuous further development of digital services in the field of drug management using AI-supported applications and new technology. Zur Rose is furthermore actively driving ahead its positioning as a comprehensive provider of healthcare services. By creating a digital healthcare platform - the Zur Rose ecosystem - it networks products and digital services from qualified providers. The contribution made by Zur Rose will be to take these offerings to customers and patients and to make a relevant selection. The aim is to provide people with a seamless accompaniment and empower them to manage their own health optimally using products and digital solutions.

The shares of Zur Rose Group AG are listed on the SIX Swiss Exchange (securities number 4261528, ISIN CH0042615283, ticker ROSE). For further information please see zurrosegroup.com.

[1] As the separation of the mail-order business has not yet been completed, Medpex and Apotal had only a minor impact on the consolidated revenue of the Zur Rose Group.
[2] Customers supplied by the Zur Rose Group, either directly or through its partners (including Apotal).



End of Media Release



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