DGAP-News: SHOP APOTHEKE EUROPE continues its dynamic growth course and again raises its 2020 guidance.

SHOP APOTHEKE EUROPE continues its dynamic growth course and again raises its 2020 guidance.

• Sales up 39.7% in Q3; DACH Segment sales +32%, International Segment +82%.
• Adj. EBITDA margin positive for the third consecutive quarter: 1.8% in Q3, 2.2% or EUR 15.5 million YTD.
• Infrastructure getting ready for further future growth: First customer order sent from new logistics centre in Sevenum ahead of schedule in October.
• Successful earlier conversion of EUR 135 million convertible bonds.
• Guidance for 2020: Full-year sales growth at least 35% (up from previously: at least 30%); adj. EBITDA margin around 2% (up from previously: between 1-2%).

Venlo, the Netherlands, 5 November 2020. SHOP APOTHEKE EUROPE N.V. continued its dynamic sales growth in the third quarter of 2020. With EUR 238.7 million, the e-pharmacy increased its Group revenues by 39.7% versus the same quarter last year. For the first nine months, this resulted in total sales of EUR 703.4 million (+38.1% vs. prior year sales of EUR 509.2 million). The number of active customers as of 30 September 2020 stood at 5.9 million, an increase of 1.4 million compared to last year and an increase of 0.4 million in Q3 alone.

SHOP APOTHEKE EUROPE CEO Stefan Feltens comments: "In addition to fast and continuing growth we have again focused on the implementation of our strategic initiatives.
I am happy to announce that the first parcel has left our new logistics centre in October - ahead of schedule. We also further rolled out our same-day delivery service "SHOP APOTHEKE NOW!" to the Munich and Berlin metropolitan areas. Furthermore, our preparations for the introduction of e-scripts in Germany are on track."

With a growth rate of 57%, gross profit at Group level increased significantly faster than sales, from EUR 99.7 million during the first nine months of 2019 to EUR 156.9 million over the period under review. Compared to a year earlier, the consolidated gross margin rose by 2.7 pp to 22.3% for the first nine months of the year. In Q3, the consolidated gross margin was 21.9% compared to 18.9% the previous year. The higher gross margins were largely driven by net pricing improvements and better sourcing conditions.

Selling and distribution (S&D) expenses as percentage of sales for the first nine months of 2020 improved by 1.5 pp to 17.5%. This is partly related to considerably lower marketing spending, particularly in March 2020 related to the Corona outbreak.
In Q3, the S&D ratio was 17.6%, slightly above the level of 17.4% in Q3 2019 as SHOP APOTHEKE EUROPE took advantage of the company's strong momentum and invested in higher growth.

Administrative costs were EUR 21.6 million (previous year: EUR 17.4 million) and included one-off expenses of EUR 3.4 million (previous year: EUR 2.6 million); the adjusted administrative cost ratio was 2.6%, down 0.3 pp from 2.9% a year earlier, thus showing the impact of scale effects.

Adjusted EBITDA was EUR 15.5 million compared to EUR -11.7 million for the first nine months of 2019 (+ EUR 27.2 million), translating into an adjusted EBITDA margin of 2.2% after -2.3 % in the previous year's period. Including depreciation expenses of EUR 10.9 million (previous year: EUR 11.0 million), EBIT was EUR 1.2 million (9M 2019: EUR -25.3 million). After net finance cost and income tax, net result was EUR -9.5 million compared to EUR -30.4 million a year earlier.

Organic growth further boosted both segments.

During the first nine months of 2020, DACH - SHOP APOTHEKE EUROPE's largest segment by revenues, covering business activities in Germany, Austria and Switzerland - grew by 32.1% compared to the corresponding period a year earlier. Revenues rose to EUR 591.7 million after EUR 447.9 million for the first nine months of 2019. Year-to-date Rx revenues increased by 17.1% to EUR 159.6 million. During the same time period, gross earnings were up 52.5% year on year, from EUR 84.4 million to EUR 128.7 million. The gross margin rose by 2.9 pp to 21.7% compared to 18.8% last year. EBITDA (adjusted) for the first nine months of 2020 was EUR 25.1 million compared to EUR -1.8 million for the same period last year.

Sales in SHOP APOTHEKE EUROPE's International Segment (Belgium, France, Italy and the Netherlands) grew substantially faster during the first nine months of 2020, up 82.4% to EUR 111.6 million (previous year: EUR 61.2 million). Segment gross earnings rose by 84.5% from EUR 15.3 million to EUR 28.2 million during the reporting period with the gross margin at 25.3%, slightly above last year's 25.0%. Adjusted EBITDA for the first nine months of 2020 also improved slightly to EUR -9.6 million from EUR -9.9 million a year earlier.

Jasper Eenhorst, CFO of SHOP APOTHEKE EUROPE, says: "Our investments in accelerated growth have paid off: We had substantial growth rates in all our markets, increasing our customer base by 1.4 million within one year. We also achieved a positive adjusted EBITDA margin for the third consecutive quarter."

Successful earlier conversion of EUR 135 million convertible bonds.

On September 23, SHOP APOTHEKE EUROPE started a campaign for an earlier conversion of its EUR 135 million 4.5% convertible bonds, originally due in 2023. On October 14, the successful full redemption was announced. "Thanks to this early conversion offer campaign to the convertible bond holders, we have substantially improved our balance sheet with an excellent equity ratio.", explains Jasper Eenhorst. "As a result, our financing costs will be significantly lower as of the start of 2021."

Guidance for 2020 raised again.

Based on the year's developments to date - and against the background of an overall improved visibility for the remaining part of the year - SHOP APOTHEKE EUROPE has again raised its guidance for 2020. For the full year, the company now expects year-on-year sales growth of at least 35% (up from previously: at least 30%) and a positive adjusted EBITDA margin of around 2% (up from previously: in the range of 1-2%).

The full nine months report can be downloaded here:

https://shop-apotheke-europe.com/en/investorrelations/publikationen/

ABOUT SHOP APOTHEKE EUROPE.

SHOP APOTHEKE EUROPE is one of the leading and fastest-growing online pharmacies in Continental Europe. With the acquisition of Europa Apotheek Venlo in November 2017, SHOP APOTHEKE EUROPE significantly extended its European market leadership. The product range for the whole family in the areas of OTC, beauty and personal care products as well as prescription drugs is supplemented by high quality natural food and health products, low carb products and sports nutrition following the acquisition of nu3 GmbH in July 2018.

SHOP APOTHEKE EUROPE operates online pharmacies in Germany, Austria, France, Belgium, Italy, the Netherlands and Switzerland at this moment. SHOP APOTHEKE EUROPE delivers a broad range of more than 100,000 original products to over 5.9 million active customers (at the end of Q3 2020) fast and at attractive prices. In addition, SHOP APOTHEKE EUROPE provides comprehensive pharmaceutical consulting services.

SHOP APOTHEKE EUROPE N.V. has been listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard) since 13 October 2016 and has moved up to the MDAX index on 21 September 2020.

In addition to being traded on the Frankfurt stock exchange, SHOP APOTHEKE EUROPE'S convertible bonds (ISIN: DE000A19Y072) are also tradeable on the Dutch Euronext stock exchange, which operates the stock exchanges in Paris, Amsterdam, Brussels and Lisbon.

PRESS CONTACTS.

Trade and popular media:
Sven Schirmer
Tel: +49 221 99 53 44 31
Email: [email protected]

Financial media:
Bettina Fries
Tel: +49 211 75 80 779
Email: [email protected]

Investor relations:
Carmen Herkenrath
Tel.: +31 77 850 6109
Email: [email protected]

Thomas Schnorrenberg
Mobile: +49 151 465 31317
Email: [email protected]


DISCLAIMER.

This publication constitutes an advertisement. This announcement does not constitute an offer for sale or a solicitation of an offer to purchase securities of SHOP APOTHEKE EUROPE N.V. in any jurisdiction. It does not constitute a securities prospectus. A public offer of securities of SHOP APOTHEKE EUROPE N.V. is not taking place.

Statements contained herein could constitute so-called "forward-looking statements". Forward-looking statements can be recognized by words such as "might," "will," "should," "plans," "anticipates," "anticipates," "estimates," "believes," "intends," "aims," "aim" or their negative form or corresponding modifications and comparable terms.

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 actual results, levels of utilization, developments and achievements of the group or industry in which it operates to be materially different than those contained herein or implied. There should be no undue reliance on forward-looking statements. The group will not update or revise any forward-looking statements contained herein, whether as a result of new information, future events or otherwise.