PharmaSGP Holding SE: Adjustment of full-year forecast 2020 due to expected weaker fourth quarter following COVID-19-related restrictions

PharmaSGP Holding SE / Key word(s): Change in Forecast
PharmaSGP Holding SE: Adjustment of full-year forecast 2020 due to expected weaker fourth quarter following COVID-19-related restrictions

27-Nov-2020 / 17:38 CET/CEST
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PharmaSGP Holding SE: Adjustment of full-year forecast 2020 due to expected weaker fourth quarter following COVID-19-related restrictions

Gräfelfing, November 27, 2020. Based on an evaluation of current data on the business development to date and the expected further business performance of the PharmaSGP Group in the fourth quarter of 2020, which was completed today, the Management Board of PharmaSGP Holding SE has come to the conclusion that the business development in the full year 2020 will be weaker than expected and that the previous forecast for the full year 2020 therefore cannot be maintained. Assuming that there will be no further comprehensive lockdown in the second half of 2020 in connection with the COVID-19 pandemic in the target markets of PharmaSGP and that product launches will contribute to growth as planned, the Management Board had previously forecast a further increase in revenue growth and the adjusted EBIT margin for the full year 2020 compared to the first half of 2020. In the first half of 2020, PharmaSGP Group's revenue growth was 7.2% year-on-year and the adjusted EBIT margin was 31.5%.

The hard, partially comprehensive lockdowns in PharmaSGP's target markets as a result of the rapid rise in infection figures in recent weeks, are having a negative impact on sales performance and distribution in the fourth quarter. In particular for the new products launched from the end of the third quarter, sales figures are not developing as dynamically as usual and are not in line with the planning for the fourth quarter anticipated by the Management Board. In addition, quarantine-related staff shortages at logistics partners and wholesalers lead to restrictions in the logistics and distribution process with negative effects on the overall portfolio.

In view of the factors described above, the Management Board now anticipates revenue growth and an adjusted EBIT margin below the previous forecast. In view of the current situation, which is characterized by the COVID-19 pandemic, it is not yet possible to make a reliable estimate of revenue and earnings development for the fourth quarter and thus also for the concrete business development for the full year 2020.

PharmaSGP Holding SE will publish its Q3 Interim Report 2020 as planned on 30 November 2020.

Note: "Adjusted EBIT margin" is not an indicator under IFRS. Information about the definition of this indicator is available in the Half-Year Financial Report 2020 of PharmaSGP Holding SE on page 22 (available at https://ir.pharmasgp.com).

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