Medios AG: Dynamic sales growth in the first half of 2020, special effects burden earnings

DGAP-News: Medios AG / Key word(s): Half Year Results/Change in Forecast
05.08.2020 / 11:46
The issuer is solely responsible for the content of this announcement.

Press Release

Medios AG: Dynamic sales growth in the first half of 2020, special effects burden earnings

• Sales up by around 28% - Earnings affected by Corona-related special effects and growth investments
• Adjustment of the forecast for 2020

Berlin, 5 August 2020 - Medios AG ('Medios'), one of the leading Specialty Pharma companies in Germany, has continued its dynamic sales growth in the first half of 2020 according to preliminary calculations. Group sales from January to June increased by 28.2% to €292.9 million compared to the same period of the previous year (€228.5 million). In addition, the Medios partner network was significantly expanded. The number of specialized partner pharmacies increased from around 200 to well over 300 in the period from the end of December 2019 to the end of June 2020. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for extraordinary expenses*, amounted to €6.5 million in the first half of 2020 (previous year €7.7 million). Consolidated earnings before taxes (EBT), adjusted for extraordinary expenses*, amounted to €4.9 million (previous year €6.8 million). The disproportionate earnings development in relation to sales resulted in particular from investments in future growth, which are expected to continue to have an impact on earnings in the second half of the year.

In addition, Corona-related special effects led to further burdens on earnings: The stockpiling that began in the first quarter as a consequence of the quota system applied for specific pharmaceuticals took place at higher purchase prices and thus led to lower margins than planned. This effect unexpectedly continued throughout the second quarter, and Medios now expects this extraordinary development to continue also in the second half of the year.

Manfred Schneider, CEO of Medios AG: 'We are proud to have come through the crisis so well. In the first half of 2020, we continued to grow strongly despite Corona and closed each month with a profit. We are particularly pleased that all our employees are still working full-time and that we can do without short-time work.'

The capital measure successfully implemented in the first half of the year and the positive operating cash flow provide a solid basis for the Company's further growth.

Due to the higher prices on the procurement side expected in the second half of 2020, the forecast has to be adjusted. Accordingly, Medios expects group sales for the 2020 financial year - including the acquisition of Kölsche Blister GmbH in March 2020 - to amount to around €610 to €630 million (previously around €610 to €670 million). In addition, Medios now expects adjusted EBITDA* of around €14 to €15 million (previously around €19.5 to €22.5 million) and adjusted EBT* of around €11.5 to €12.5 million (previously around €17.5 to €20.5 million).

Matthias Gärtner, CFO of Medios AG: 'Our dynamic growth is intact. The Specialty Pharma market will continue to consolidate. Our excellent liquidity, exceptionally low debt and the positive operating cash flow achieved in the first half of 2020 give us sufficient opportunities to benefit from these changes. I am therefore optimistic that we will be able to continue on our growth path and reach the one billion euro sales mark by 2023 at the latest.'

In the first half of 2020, the Pharmaceutical Supply business segment recorded sales growth of 28,3% to €262.1 million compared to the same period of the previous year (€204.3 million). Sales in the Patient-specific Therapies business segment climbed by 26.7% to €30.6 million (previous year €24.2 million). The internal Services business segment generated sales of €0.2 million (previous year €0.1 million).

Growth investments in the first half of 2020 totaled around €3.4 million. This includes in particular one-off special effects for M&A activities, such as the already completed takeover of Kölsche Blister GmbH, as well as expenses for the preparation of the IT infrastructure for the introduction of the e-prescription, which is to be largely mandatory from 2022. In addition, Medios is investing in expanding the indications to include the trade in hemophilia preparations. Due to a new regulation, these drugs may only be dispensed to patients via pharmacies as of 1 September 2020.

The final half-year figures of Medios AG will be published in the Medios Group Interim Financial Report 2020 on 25 August 2020.

* EBITDA and EBT are adjusted for extraordinary expenses for stock options and amortization of the customer base.

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About Medios AG
Medios AG is one of the leading Specialty Pharma companies in Germany. As a specialist for the provision of Specialty Pharma drugs to patients, GMP-certified provider of patient-specific therapies and innovative analytical methods, Medios covers substantial elements of the supply chain in this field and follows the highest international quality standards. Usually, Specialty Pharma drugs are high-priced medicines for rare and/or chronic diseases. Patient-specific therapies are, for example, infusions that are compiled and produced on the basis of individual diseases and parameters like body weight and surface. In the field of drug safety, NIR spectroscopic analysis methods (NIR: Near infrared) are used to distinguish marketable finished drugs from drug counterfeits. It is Medios' aim to provide integrated solutions along the value chain to partners and clients, thereby ensuring an optimal pharmaceutical care for patients.

Medios AG is Germany's first publicly listed Specialty Pharma company. The shares (ISIN: DE000A1MMCC8, DE000A288821) are listed in the Regulated Market of the Frankfurt Stock Exchange (Prime Standard).

Contact
Medios AG
Claudia Nickolaus
Head of Investor & Public Relations
Heidestraße 9
10557 Berlin
Germany
Phone: +49 30 232566800
Fax: +49 30 232566801
E-mail: c.nickolaus@medios.ag
www.medios.ag

Kirchhoff Consult AG
Nikolaus Hammerschmidt
Borselstraße 20
22765 Hamburg
Germany
Phone: +49 40 60918618
Fax: +49 40 60918660
E-mail: nikolaus.hammerschmidt@kirchhoff.de
www.kirchhoff.de

Disclaimer
This notification contains forward-looking statements that are subject to certain risks and uncertainties. Future results may significantly deviate from currently expected results, specifically due to various risk factors and uncertainties such as changes in business, economic, and competitive circumstances, exchange rate fluctuations, uncertainties about legal disputes or investigations, and the availability of financial resources. Medios AG assumes no responsibility whatsoever for updating the forward-looking statements contained in this notification.

05.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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