Zur Rose Group posts 30 per cent growth in 2019

EQS Group-News: Zur Rose Group AG / Key word(s): Development of Sales
22.01.2020 / 06:45

Press release

Zur Rose Group posts 30 per cent growth in 2019

- Growth targets successfully implemented in 2019

- Clear number 1 position in Germany reinforced

- Partnership in Germany with European market leader in digital doctor consultations

- Two joint ventures with Medbase in Switzerland launch operations

- EBITDA targets for 2019 confirmed

The Zur Rose Group successfully implemented its growth targets in the 2019 financial year. Including medpex sales, it achieved revenue growth of 30.1 per cent to CHF 1,570.1 million. In local currency terms this corresponds to growth of 32.9 per cent to the equivalent of CHF 1.6 billion. Sales excluding medpex rose by 12.4 per cent (15.3 per cent in local currency terms)^[1]. Overall the Zur Rose Group managed to considerably extend its leading position as Europe's largest e-commerce pharmacy.

Strong growth in all segments
Revenue in Germany including medpex sales shot up by 45.4 per cent to CHF 976.0 million (up 50.9 per cent in local currency terms). As planned, the integration of apo-rot saw marketing, services and IT brought together in Heerlen at the end of 2019 and the Hamburg site was closed. The synergies from this integration will have a positive impact in 2020. In Switzerland, despite price cuts of 4 per cent mandated by the regulator (IQVIA, ex-factory figures), Zur Rose boosted revenue by 5.2 per cent to CHF 554.4 million, considerably outpacing the market. The positive trend in new customers in the Swiss physicians business (Professional Services) was sustained. Zur Rose reported healthy growth of 7.6 per cent in this area, taking market share from 24.5 per cent to 25.0 per cent. The Group also posted strong revenue growth of 48 per cent to CHF 39.7 million in the Rest of Europe segment, which covers the marketplace business in Spain and France and from around 20 countries on a cross-border basis.

Electronic prescriptions and telemedicine in Germany; cooperation with KRY
The launch of electronic prescriptions represents major progress for using telemedicine to care for patients in Germany. The cooperation agreement reached between KRY and DocMorris in the fourth quarter of 2019 means patients can now enjoy fully digital care with no media break, from the doctor at KRY performing a telemedical diagnosis to DocMorris carrying out a pharmaceutical review, providing advice and dispensing the medication prescribed. KRY is a healthcare company with operations across Europe that offers patients digital doctors' appointments by video. If necessary, the attending physician can issue an electronic prescription, which can be dispensed by DocMorris or a local pharmacy, at the patient's choice.

Joint ventures with Medbase have started operations
Since the start of 2020 Zur Rose and Medbase - a subsidiary of Migros - have been running the shop-in-shop pharmacies and the webshop through two joint ventures. Zur Rose sees considerable potential for synergies by stepping up the strategic cooperation. The next shop-in-shop pharmacies planned are in the Migros supermarket in Crissier in the canton of Vaud and in the Tivoli shopping centre in Spreitenbach. In the medium term the aim is to operate the webshop as a marketplace where other partners can also offer their products.

Outlook
The Zur Rose Group confirms the profit forecast for 2019 (an EBITDA margin of 0 to minus 1 per cent). A margin at the lower end of the announced range is currently expected. The Group also confirms the outlook for 2022, with Management looking to double the revenue generated in 2018 with a target EBITDA margin of 5 to 6 per cent.

The Zur Rose Group will release the full annual report 2019 on 19 March 2020.

1) PromoFarma consolidated per 14 September 2018

Investors and analyst contact
Marcel Ziwica, Chief Financial Officer
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
19 March 2020 2019 Full-Year Results
16 April 2020 First Quarter Trading Update
23 April 2020 Annual General Meeting
19 August 2020 Half-Year Results
21 October 2020 Q3 Trading Update

Zur Rose Group

The Swiss Zur Rose Group is Europe's largest e-commerce pharmacy and one of the leading medical wholesalers in Switzerland. With its business model, it offers high-quality, safe and cost-effective pharmaceutical care and thus contributes to reducing healthcare costs. It is also characterized by the continuous further development of digital services in the field of drug management and actively promotes its positioning as a comprehensive, integrated cross-service healthcare platform. The creation of added value and a pronounced patient orientation make the Group an important strategic partner for service providers, payers and industry.

The Zur Rose Group is internationally present with strong brands, including Germany's best-known pharmacy brand DocMorris. The company employs over 1,600 people at various locations and generated a turnover of CHF 1,570 million in the 2019 financial year (including medpex). The shares of Zur Rose Group AG are listed on the SIX Swiss Exchange (securities number 4261528, ISIN CH0042615283, ticker ROSE). Further information at zurrosegroup.com

^[1] As the separation of the mail-order business has not yet been completed, no medpex revenues were consolidated in 2019.

End of Corporate News