Redcare Pharmacy N.V. · XETR:RDC
Redcare Pharmacy — Shop Apotheke Europe — Q3 2020 Earnings Presentation
31 slides from Redcare Pharmacy's earnings presentation, Nov 5, 2020
Slide 1: Q3 2020 Earnings Call Presentation
Q3 2020 EARNINGS CALL. PRESENTATION. SHOP APOTHEKE EUROPE STEFAN FELTENS, CEO JASPER EENHORST, CFO 05 NOV 2020
Slide 2: Today's Presenters
2 TODAY‘S PRESENTERS. STEFAN FELTENS JASPER EENHORST CEO SHOP APOTHEKE EUROPE CFO SHOP APOTHEKE EUROPE
Slide 3: Presenting today from our new headquarters in Sevenum
3 PRESENTING TODAY FROM OUR NEW HEADQUARTERS IN SEVENUM.
Slide 4: Today's Agenda
TODAY’S AGENDA. FINANCIAL UPDATE ON BUSINESS AND PERFORMANCE STRATEGY Q+A
Slide 5: Highlights Q3 2020
5 HIGHLIGHTS. Q3 2020. Accelerated growth – fully organic – driven by excellent execution. Growth of 39.7% to EUR 238.7M in Q3 and of 38.1% to EUR 703.3M YTD. Record number of new customers. Active customer base up 400,000 in Q3 and 1.4M YOY to 5.9M customers. Adj. EBITDA margin 1.8% in Q3 and 2.2%
Slide 6: Impressive fully organic topline growth
6 KEY FINANCIALS. IMPRESSIVE FULLY ORGANIC TOPLINE GROWTH. ACTIVE CUSTOMERS +400,000 in Q3, +1,400,000 YOY. Q3 Group Q3 DACH Q3 INTERNATIONAL sales | vs. prior year sales | vs. prior year sales | vs. prior year (in EUR million) (in EUR million) (in EUR million) +40% +34% 238.7 200.6 +82% 170.9 150.0
Slide 7: Expansion of active customer base
7 EXPANSION OF ACTIVE CUSTOMER BASE. PLUS 400,000 IN Q3 (RX & OTC). # Active customers (in million) +1.4M 5.9M NPS-SCORE. (Q2 2020: 70) 70 4.5M € 66.87 Q3 2019 Q3 2020 AVERAGE SHOPPING BASKET VALUE. (Q3 2019: EUR 66.91)
Slide 8: Strong web traffic growth
8 KPIs. STRONG WEB TRAFFIC GROWTH MOST POPULAR PHARMACY WEBSITE IN GERMANY.* Weekly Website Visits (Desktop & Mobile) 6,000,000 140% 120% 5,000,000 100% 4,000,000 80% 3,000,000 60% YOY Growth 2,000,000 (%) 40% 1,000,000 20% Total (Visits Web Traffic) 0 0% Source: 01-2020 13-2020 27-2020 43-2020 SHOP
Slide 9: Share of repeat orders remains high
9 KPIs. SHARE OF REPEAT ORDERS REMAINS HIGH DESPITE LARGE NUMBERS OF NEW CUSTOMERS. Number of orders (in ‘000) Share of repeat orders (in %) Source: SHOP APOTHEKE EUROPE.
Slide 10: Adj. EBITDA from EUR -11.7M last year to +15.5M now
10 KEY FINANCIALS. ADJ. EBITDA FROM EUR —11.7M LAST YEAR TO +15.5M NOW. (in EUR million) Q3 last yearYTD and this year Q3 and this year 9M last year Better/ Better/ Q3 2019 Q3 2020 9M 2019 9M 2020 (Worse) (Worse) Sales 170.9 238.7 40% 509.2 703.3 38% Gross profit margin 18.9% 21.9% 3.0 pp 19.6% 22.3
Slide 11: Gross margin up 3.0 pp vs. last year
11 KEY FINANCIALS. GROSS MARGIN UP 3.0 PP VS. LAST YEAR. Gross margin (in % of sales) 0.9% 3.6% 21.9% – 2.1% 0.6% 18.9% Country/ Q3 2019 Sourcing Net Pricing Other Q3 2020 Product Mix
Slide 12: Marketing expenses up, operational costs well controlled
12 KEY FINANCIALS. MARKETING EXPENSES UP, REFLECTING GROWTH INVESTMENTS. OPERATIONAL COSTS WELL CONTROLLED. S&D costs (in % of sales) 0.0% – 0.1% 17.6% 17.4% – 0.9% 1.2% Shipping, Operational Q3 2019 Marketing Packaging and Other Q3 2020 Labour Payments
Slide 13: EBITDA up EUR 27.2M year over year
13 KEY FINANCIALS. EBITDA UP EUR 27.2 M YEAR OVER YEAR. Adjusted EBITDA (in EUR million Q3 vs. Q3 9M vs. 9M and % of sales) –2.8% 15.5M 4.2M 1.8% 2.2% – 11.7M -1.2% – 2.3% – 2.1M Q3/2019 Q3/2020 9M/2019 9M/2020
Slide 14: Cash balances up due to positive cash flow in Q3
14 KEY FINANCIALS. CASH BALANCES UP DUE TO A POSITIVE CASH FLOW IN Q3. 157 Cash from operations in Q3 1.0 a positive EUR 5.1 million. (15.8) 154 4.1 13.2 Investments on track. In Q3 EUR 15.8 million mainly in the new logistics centre in Sevenum and IT. Cash from financing in Q3 a positive EUR CASH A
Slide 15: Today's Agenda
TODAY’S AGENDA. FINANCIAL UPDATE ON BUSINESS AND PERFORMANCE STRATEGY Q+A
Slide 16: From a pure e-pharmacy retailer to a customer-centric platform
16 … TO A FROM A PURE CUSTOMER- E-PHARMACY CENTRIC RETAILER … E-PHARMACY PLATFORM.
Slide 17: Focussing on customers' needs to increase loyalty and profitability
17 FOCUSSING ON OUR CUSTOMERS’ NEEDS TO INCREASE CUSTOMER LOYALTY & PROFITABILITY.
Slide 18: Venlo 2020: new logistics centre
18 VENLO 2020: NEW LOGISTICS CENTRE TO MEET THE HIGHER FUTURE DEMAND EXPECTED DUE TO E-SCRIPT.
Slide 19: Venlo 2020: ample capacity for growth plans
19 VENLO 2020: AMPLE CAPACITY FOR OUR AMBITIOUS GROWTH PLANS. TODAY: TOMORROW: 20,000 sqm 40,000 sqm on one level. plus 8,000 sqm on 2nd level. PARCELS SENT 2019: TOMORROW: > 39,000 A DAY. > 100,000 A DAY. INTRODUCING A NEW LEVEL OF AUTOMATION. CAPACITY OF > 35 MILLION PARCELS PER YEAR.
Slide 20: New logistics centre fully on schedule
20 NEW LOGISTICS CENTRE FULLY ON SCHEDULE. A SEAMLESS MOVE TO GUARANTEE OPTIMAL OPERATIONS. • OCTOBER 21, 2020: SHIPPING OF FIRST PARCELS TO ITALY. • JANUARY 2021: INTRODUCTION OF A SIGNIFICANTLY HIGHER LEVEL OF AUTOMATION. • Q2 2021: COMPLETION OF THE ENTIRE LOGISTICS CENTRE.
Slide 21: Inspiring open space environment for employees
21 VENLO 2020 INSPIRING OPEN SPACE ENVIRONMENT FOR OUR EMPLOYEES.
Slide 22: Creating a sustainable building
22 VENLO 2020. CREATING A SUSTAINABLE BUILDING. FOCUS ON SUSTAINABILITY. REDUCING OUR ENVIRONMENTAL FOOTPRINT. “VERY GOOD“ ACCORDING TO THE DUTCH BREEAM CERTIFICATION STANDARDS.
Slide 23: Key strategic initiatives
23 CUSTOMER-CENTRIC SERVICES KEY STRATEGIC INITIATIVES. OWN BRANDS. EXTENSION OF REDCARE PRODUCTS. MARKETPLACE. • SHOP APOTHEKE NOW! • PORTFOLIO EXPANSION. ONLINE DOCTOR SERVICE. CO-OPERATION WITH ZAVA IN GERMANY. E-SCRIPT. INTERNAL PREPARATONS FULLY ON TRACK.
Slide 24: E-Rx first: already prepared to get started
24 E-RX FIRST: ALREADY PREPARED TO GET STARTED. DEDICATED TEAM OF EXPERTS. TASK FORCE ”E-RX FIRST“ ESTABLISED 2019. DEEP INHOUSE EXPERTISE. ALMOST 20 YEARS OF RX EXPERIENCE (EUROPA APOTHEEK / SMART). TECHNOLOGY ALREADY IN USE HUNDREDS OF ONLINE PRESCRIPTIONS FILLED EVERY DAY THROUGH OUR CO-OPERATION
Slide 25: 2020 sales and EBITDA guidance raised again
25 LOOKING FORWARD. 2020 SALES AND EBITDA GUIDANCE RAISED AGAIN. Full-year sales growth at least 35% (up from previously: at least 30%). Full-year adj. EBITDA margin around 2% (up from previously: 1-2%). Continued investments in growth: capacity, IT and customer acquisition. Long-term target profita
Slide 26: Today's Agenda
TODAY’S AGENDA. FINANCIAL UPDATE ON BUSINESS AND PERFORMANCE STRATEGY Q+A
Slide 27: Now it's time for Q&A
27 NOW IT’S TIME FOR Q&A.
Slide 28: Consolidated Segment Financials
28 CONSOLIDATED SEGMENT FINANCIALS.
Slide 29: Unaudited Consolidated Statement of Profit and Loss
29 UNAUDITED CONSOLIDATED STATEMENT OF PROFIT AND LOSS.
Slide 30: Unaudited Interim Consolidated Statement of Financial Position
30 UNAUDITED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION.
Slide 31: Unaudited Interim Consolidated Statement of Cash Flows
31 UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS.