Zur Rose Group AG
/ Key word(s): Half Year Results
2020 Half-Year Results
Zur Rose Group reinforces European market leadership by rigorously implementing the growth and platform strategy
- First half earnings on target; profitability improved year on year
- Realisation of the reorganisation in Germany: Central management across all German brands
- Growth and platform strategy continue with acquisition of Apotal and TeleClinic, Germany's leading telemedicine provider
- Ongoing market digitalisation and mandatory e-prescriptions in Germany from 2022 will accelerate growth
- Partnership network in Germany expanded, laying strong foundations for spread of
The Zur Rose Group continued its growth and platform strategy in the first half of 2020 as planned. Including medpex, sales were up 9.2 per cent year on year in local currency terms. The Group has taken over the e-commerce activities of Apotal, marking a considerable further expansion of the number one position in Germany with an additional 1.1 million customers. Economies of scale will also create a solid basis for launching digital healthcare offerings, including electronic prescriptions, and further expanding the Zur Rose healthcare ecosystem. In the second half of the year Zur Rose will continue to press ahead with the initiatives to scale up the existing e-prescription projects. In the first seven months of the year the Group raised a gross CHF 388 million to finance the growth and digitalisation projects by issuing a convertible bond and conducting a capital increase.
As already announced on 16 July 2020, including medpex sales the Zur Rose Group achieved revenue of CHF 809.9 million in the first half of 2020, equivalent to growth of 9.2 per cent in local currency terms. EBITDA was minus CHF 24.5 million. This was negatively affected by CHF 13.0 million of expenses in connection with acquisitions and integration. Adjusted EBITDA was CHF 8.9 million ahead of the previous year, partly due to a significant increase in the gross margin. The adjusted EBITDA margin before expenditure on the e-prescription and European expansion growth initiatives was minus 0.4 per cent, within the forecast target range for the full year.
Central management across all brands in Germany
Acquisition of Apotal with access to additional 1.1 million customers
Continuing to press ahead with the platform strategy
The main focus is on creating a proprietary healthcare ecosystem networking qualified providers with products and digital services. The acquisition of TeleClinic GmbH, Germany's leading telemedicine provider, announced on 16 July 2020, is a key first building block in this strategy and adds telemedical services to the offering. Telemedicine is a decisive and convenient solution all along the digital patient pathway, for both acute and chronic illnesses.
The launch of the DocMorris marketplace app is planned for the fourth quarter of 2020. With the choice of having prescriptions filled locally or by an online pharmacy, the app gives customers a user-friendly application with additional services: for example, they have direct access to the telemedicine offering and a selection of different supplier and ordering options. The app also enables purchases of non-prescription drugs as well as beauty and personal care products with digital payment options.
Start of the nationwide launch of e-prescriptions in Germany
As an e-prescription technology partner to the remote treatment service of health insurer Techniker Krankenkasse (TK), eHealth-Tec already connects more than one thousand pharmacies via its e-prescription solution. A shared interface allows more than 50 per cent of local pharmacies across the country to be technically integrated with various pharmacy services. DocMorris joined the TK project in June 2020, allowing TK members to have e-prescriptions filled by mail-order. With further health insurers joining the cooperation with TK, 35 per cent of all people with statutory health insurance in Germany could now already use e-prescriptions.
In June 2020 eHealth-Tec also entered into a strategic partnership with medatixx, a leading supplier of software solutions for practising doctors. Its software solutions for practices are used by 38,000 doctors across Germany, who will be able to access the eHealth-Tec e-prescription solution from the third quarter onwards as part of a multi-stage roll-out. This is equivalent to a market share of around 27 per cent.
At 2 p.m. CET today there will be a telephone conference in English for analysts and the media.
Investors and analyst contact
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 nine 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.
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