SHOP APOTHEKE EUROPE : increases consolidated revenues by 53% and confirms raised guidance.

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SHOP APOTHEKE EUROPE increases consolidated revenues by 53% and confirms raised guidance.

• Consolidated revenues up by +53% to over EUR 191m.
• Group's gross profit grows by 59% to EUR 41m, gross margin improved to 21.2%.
• Further growth acceleration anticipated in Q4 due to consolidation of Europa Apotheek.
• Increased revenue growth guidance of 55% to 65% confirmed.

Venlo/Cologne, 13 November 2017. SHOP APOTHEKE EUROPE N. V. has again shown strong growth across all business segments in the first nine months of the financial year 2017 (01.01. - 30.09.). Group sales increased by +53% to more than EUR 191m after EUR 125m in the same period of the previous year. SHOP APOTHEKE EUROPE is thus once again the fastest growing online pharmacy in Europe.

As a result of the successful growth initiatives, the number of active customers rose significantly by around 50% from 1.6m as of 30 September 2016 to almost 2.4m. SHOP APOTHEKE EUROPE processed 4.2m orders during the reporting period. This corresponds to an increase of 50% (2016: 2.8m) against the same period last year. In the third quarter, around 76% of orders were placed by existing customers, an increase of three percentage points compared to the already high level in the same period last year (73%). The share of mobile website visits increased again to 53% in the third quarter of 2017, up from 44% in the same quarter of the previous year.

At Group level, SHOP APOTHEKE EUROPE increased its gross profit in the period under review from EUR 25.6m in the previous year's period to EUR 40.6m - an increase of nearly 59%. In connection with the next automation step in logistics, changes in the incoming goods system led to a temporary increase in volumes being purchased from wholesalers in the third quarter. This transitionally necessary measure and the planned increase in expenses for acquiring new customers had an impact on third quarter's earnings. Nevertheless, the gross margin at Group level improved by 0.7 percentage points to 21.2% in the nine-month period.

In administration, SHOP APOTHEKE EUROPE benefited from economies of scale during the reporting period: administrative expenses (before depreciation) amounted to EUR 5.8m in the first nine months of 2017 (prior year period: EUR 5.1m). Relative to sales, administrative expenses decreased to 3.1% (previous year: 4.1% or 3.8% adjusted for one-off IPO costs). In the period under review, this led to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR -6.8m after EUR -4.8m in the previous year and EUR -4.3m adjusted for one-off expenses. After depreciation and amortization of EUR 4.1m (previous year: EUR 2.3m), earnings before interest and taxes (EBIT) amounted to EUR -11.0m (previous year: EUR -7.1m or EUR -6.6m adjusted).

Market position in the core market of Germany further expanded through profitable growth
In the highest sales segment Germany, SHOP APOTHEKE EUROPE recorded growth of 31% in the first nine months of 2017 as against the same period last year. Sales rose from EUR 105.1m in the prior-year period to EUR 137.5m. At the same time, the gross profit improved by 32% from EUR 21.6m in the year before to EUR 28.6m. Accordingly, the gross margin increased by 0.3 percentage points to 20.8% in the reporting period (previous year: 20.5%). The segment EBITDA in the period under review amounted to EUR 4.2m after EUR 3.0m in the equivalent period of the previous year. This led to an improvement in the segment EBITDA margin of 0.2 percentage points to 3.0%.

International business remains growth driver
In the international regions - which include Austria, France, Belgium, the Netherlands, Spain and Italy - SHOP APOTHEKE EUROPE has almost tripled its business volume. As a result of the significant increase in orders, sales in the International segment rose by +188% to EUR 53.0m during the reporting period, compared with EUR 18.4m in the corresponding prior-year period. Gross profit grew by 270% to EUR 11.6m (previous year: EUR 3.1m) in the reporting period. The gross margin was up substantially year-on-year by 4.8 percentage points to 21.9%. The segment EBITDA in the period under review amounted to EUR -5.3m, compared with EUR -3.5m (adjusted: EUR -3.2m) in the same period of the previous year. The underlying reason is the higher proportion of orders from new customers with correspondingly higher acquisition costs in the growth markets.

Germany Services segment grows with the Group's increasing business volume
In the first nine months of 2017, gross revenues in the Germany Services segment amounted to EUR 4.6m, compared with EUR 3.0m in the same period of the previous year. This figure includes revenues of EUR 4.0m (previous year: EUR 1.8m) for intragroup services, which have been eliminated as part of consolidation. The gross profit for the period under review amounted to EUR 0.3m after EUR 0.8m in the equivalent period of the previous year and segment EBITDA to EUR 0.1m after EUR 0.7m in the preceding year.

Acquisition of Europa Apotheek successfully completed, guidance confirmed
In the third quarter, SHOP APOTHEKE EUROPE initiated the takeover of Europa Apotheek Venlo with the aim of further expanding its European market leadership. An extraordinary general meeting held on 6 November 2017 unanimously approved the transaction and a corresponding capital increase, so that the takeover could successfully be completed meanwhile. The combination will create the largest and fastest growing online pharmacy in Continental Europe, with a considerably expanded position in the various product categories and customer age groups. In view of the consolidation of Europa Apotheek Venlo since 8 November 2017, the Managing Board expects a further acceleration of growth at Group level in the fourth quarter of 2017 and confirms the increased guidance for the Group's revenue growth of +55% to +65% (previously +45% to +55%) for the financial year 2017. The consolidated EBITDA margin forecast remains unchanged at -2.0% to -3.0% (before non-recurring transaction expenses).

 

ABOUT SHOP APOTHEKE EUROPE.
SHOP APOTHEKE EUROPE is Continental Europe's leading online OTC pharmacy with a portfolio that focuses on OTC medication and pharmacy-related beauty and care products (BPC). With the acquisition of Europa Apotheek, SHOP APOTHEKE EUROPE significantly enhanced its European market leadership with an expanded product range for the whole family. The combination will create the fastest growing integrated online pharmacy with pro forma sales of around EUR 318 m in 2016.

SHOP APOTHEKE EUROPE already operates online pharmacies in Germany, Austria, France, Belgium, Italy, Spain and The Netherlands. In Germany, the TÜV-certified shop-apotheke.com is the market leader in terms of traffic. SHOP APOTHEKE EUROPE delivers a broad range of more than 100,000 original products to more than 2.4 m active customers quickly and at attractive prices. In addition, SHOP APOTHEKE EUROPE provides comprehensive and consistent pharmaceutical services.

SHOP APOTHEKE EUROPE generated sales of about EUR 191 m in the first nine months of 2017 and growth of +53% compared to the same period last year. Headquartered in Venlo (the Netherlands), SHOP APOTHEKE EUROPE also has offices in Cologne, Düsseldorf and Tongeren, Belgium. The online pharmacy has been listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard) since 13 October 2016.

 

MEDIA CONTACTS.

Trade and public media:
Sven Schirmer
Mobil: +49 152 28 50 63 61
E-Mail: presse@shop-apotheke.com

Financial media:
Thomas Schnorrenberg
Mobil: +49 151 46 53 13 17
E-Mail: presse@shop-apotheke.com

Investor Relations:
Dr. Ulrich Wandel
Telefone: +31 77 850 6117
E-Mail: ulrich.wandel@shop-apotheke.com

DISCLAIMER.

This publication is an advertisement.
This communication constitutes neither an offer to sell nor a solicitation to buy securities of Shop Apotheke Europe N.V. in any jurisdiction. This is not a securities prospectus. No public offering of any securities of Shop Apotheke Europe N.V. is being made.

Statements contained herein may constitute "forward-looking statements." Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate," "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology.

Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the Group's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. You should not place undue reliance on forward-looking statements and the Group does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.