Redcare Pharmacy N.v. · XETR:RDC
Redcare Pharmacy — FY2022 Earnings Presentation
26 slides from Redcare Pharmacy's earnings presentation, Mar 7, 2023
Slide 1: Full Year 2022 Earnings Call Presentation
FULL YEAR 2022 EARNINGS CALL PRESENTATION. SEVENUM, 7 MARCH 2023
Slide 2: Live from our headquarters in Sevenum
2 FULL YEAR 2022 EARNINGS CALL LIVE FROM OUR HEADQUARTERS IN SEVENUM. JASPER EENHORST, CFO. STEFAN FELTENS, CEO.
Slide 3: Today's Agenda
3 TODAY‘S AGENDA. BUSINESS PERFORMANCE. REVIEW / UPDATE ON BUSINESS AND STRATEGY. OUTLOOK AND GUIDANCE.
Slide 4: Business Performance
oe SHOP APOTHEKE BUSINESS PERFORMANCE.
Slide 5: Looking back on a successful year
5 HIGHLIGHTS 2022: LOOKING BACK ON A SUCCESSFUL YEAR. • GUIDANCE MET IN ALL ITS ELEMENTS. TOP AND BOTTOM LINE. • NON-RX SALES GROWTH 17%; OVERALL SALES GROWTH 14%, PROVING THE ROBUSTNESS OF THE BUSINESS MODEL. RECORD SALES OF EUR 1.2 BILLION; GROWTH IN ALL COUNTRIES. ACTIVE CUSTOMER BASE UP 1.4M IN
Slide 6: Guidance met in all its elements
6 LOOKING BACK AT 2022 VS. THE GUIDANCE PROVIDED AT THE START OF THE YEAR. GUIDANCE MET IN ALL ITS ELEMENTS. TOTAL SALES GROWTH AND 20% ADJ. EBITDA 15% +2.5pp 14% REPORTED. 7% 0.4% 0.3% ACTUALS VS. GUIDANCE: 2022 2022 (1.4%) (2.1%) RESULT GUIDANCE ACTUALS Q1 2022 Q2 2022 Q3 2022 Q4 2022 GUIDANCE: NO
Slide 7: Double-digit total sales growth
7 KEY FINANCIALS. DOUBLE-DIGIT TOTAL SALES GROWTH. 12M TOTAL SHOP APOTHEKE EUROPE 12M DACH 12M INTERNATIONAL sales | vs. prior year sales | vs. prior year sales | vs. prior year in EUR million in EUR million in EUR million Non-Rx Non-Rx +17% +15% 1,204 940 1,060 847 264 +14% +11% +24% 213 12M 2021 1
Slide 8: Active customer base approaching 10 million
8 COTINUOUSLY STRONG NET PROMOTER SCORE. ACTIVE CUSTOMER BASE APPROACHING 10 MILLION. Number of active customers in millions +1.4M NET PROMOTER SCORE (NPS). (2021: 68) 72 9.3M 7.9M € 58.28 31 DEC 2021 31 DEC 2022 AVERAGE SHOPPING BASKET VALUE. (2021: EUR 61.16)
Slide 9: Continued high share from returning customers
9 23 MILLION ORDERS. CONTINUED HIGH SHARE FROM RETURNING CUSTOMERS. Number of orders in thousands Share of repeat orders in percentage of total Source: SHOP APOTHEKE EUROPE.
Slide 10: Positive adj. EBITDA in H2
10 KEY FINANCIALS: PROFIT & LOSS. POSITIVE ADJ. EBITDA IN H2. IN MILLIONS OF EUROS. Better / (Worse) Better / (Worse) ADJUSTED NUMBERS FOR THE Q4 2021 Q4 2022 than Q4 2021 than H1 2022 12M 2021 12M 2022 ONGOING BUSINESS OPERATIONS Sales 288 328 13.8% 1,060 1,204 Gross profit margin 24.6% 27.8% 3.2 p
Slide 11: Gross profit margin up 2.3 pp
11 KEY FINANCIALS: GROSS PROFIT MARGIN. UP 2.3 PP VS. LAST YEAR‘S 12M. GROSS PROFIT MARGIN +0.7pp in percentage 1.1% of sales 0.3% 0.6% Adjusted and 0.4% ongoing business 27.8% 27.5% 27.1% 25.2% Net Pricing/ Country/ H1 2022 12M 2021 Sourcing Other 12M 2022 Q4 2022 Product Mix Rx-OTC Mix
Slide 12: Cost efficiency in Q4 significantly better vs. H1
12 KEY FINANCIALS: SELLING & DISTRIBUTION RATIO. COST EFFICIENCY IN Q4 SIGNIFICANTLY BETTER VS. H1. SELLING & DISTRIBUTION COSTS (2.1)pp in percentage of sales Adjusted and ongoing business (0.5%) (25.5%) (0.6%) 0.1% (23.4%) (0.9%) (24.5%) (22.6%) Shipping 12M 2021 Marketing Operational Other 12M 20
Slide 13: Solid cash balance
13 KEY FINANCIALS: CASH FLOW. SOLID CASH BALANCE. OPERATING CASH: EUR -29M. H1 negative EBITDA, inventory build- 282M up at year-end, elevated payables in (12) 2021. (17) (60) (13) 180M INVESTMENTS: EUR 60M. IT, acquisition of GOPULS (FIRST A), Milan distribution centre opened. CASH AND OPERATING RE
Slide 14: Review / Update on Strategy and Business
14 REVIEW / UPDATE ON STRATEGY AND BUSINESS.
Slide 15: Strategic achievements 2022 at a glance
15 STRATEGIC ACHIEVEMENTS 2022 AT A GLANCE. • FURTHER RISE OF CUSTOMER SATISFACTION FROM ALREADY HIGH LEVEL. • INCREASE IN CAPACITY AND OPERATIONAL EFFICIENCY. • SUCCESSFUL LAUNCHES OF MARKETPLACES. • STRONG COMMITMENT TO SUSTAINABILITY. • PROGRESS MADE TOWARDS NATIONWIDE E-RX IN GERMANY.
Slide 16: Further rise of customer satisfaction
16 FURTHER RISE OF CUSTOMER SATISFACTION. • NOW EVEN FASTER DELIVERY ACROSS EUROPE. • DOUBLE-DIGIT GROWTH STEADILY CONTINUED. • ACTIVE CUSTOMER BASE UP FROM 7.9M TO 9.3M. • RETURNING CUSTOMER SHARE IN SALES 4/5. • HIGH NPS OF 72. • SUCCESSFUL REBRANDING IN ITALY TO REDCARE. • SHOP-APOTHEKE.COM CLEAR
Slide 17: Increased capacity and operational efficiency
17 INCREASED CAPACITY AND OPERATIONAL EFFICIENCY. • ROBUST AND RELIABLE PERFORMANCE THROUGHOUT THE YEAR. • CONTINUOUS NEW CUSTOMER ORDER RECORDS. • OPENING OF ITALIAN DISTRIBUTION CENTRE. 100% OF ITALIAN ORDERS SHIPPED FROM MILAN.
Slide 18: Strong commitment to sustainability
18 COMMITTED TO STRONG COMMITMENT 1.5 DEGREES. TO SUSTAINABILITY. • REDUCTION OF SCOPE 1 AND 2 CARBON EMISSIONS OF 80% ACHIEVED THREE YEARS AHEAD OF PLAN. • NEW TARGET OF NET ZERO IN 2040. • MSCI ESG RATING AA. Michaela Tünnermann Pharmacist.
Slide 19: Update on e-Rx: progress made, ready for more
19 UPDATE ON E-RX. PROGRESS MADE. READY FOR MORE. • MORE THAN 1.3 MILLION E-PRESCRIPTIONS REDEEMED TO DATE. (As of 6 March 2023). • ON AVERAGE 7,500 E-PRESCRIPTIONS ARE REDEEMED DAILY. • NATIONWIDE CONTINUOUS INCREASE UNTIL E-RX OBLIGATION (PROBABLY 2024). READY FOR A FUTURE WITH E-PRESCRIPTIONS.
Slide 20: Outlook and Guidance
wtegy SHOP APOTHEKE OUTLOOK AND GUIDANCE.
Slide 21: Adj. EBITDA margin outlook unchanged
21 GROSS PROFIT MARGINS. MID- TO LONG-TERM ADJ. EBITDA MARGIN MEDIA INCOME. EFFICIENCIES. OUTLOOK UNCHANGED FOR OUR CURRENT BUSINESS. E-RX. SEGMENT ADJ. EBITDA MARGIN IN EXCESS OF 8%. INTERNATIONAL. MARKETPLACE. DRIVERS: • GROSS PROFIT MARGINS. MARKETING. • MEDIA INCOME. • MARKETING LOWER AS A PERCE
Slide 22: Guidance for Full Year 2023
22 GUIDANCE FOR FULL YEAR 2023. Excluding impact from a potential surge in e- prescriptions (eRx) in Germany. 10% TO 20% GROWTH IN NON-RX SALES. • NON-RX ACCOUNTED FOR EUR 1.1 BILLION (90%) OF SALES IN 2022. FREE CASH FLOW ZERO; BETWEEN EUR -20M AND +20M. • FCF AS PER THE MOST COMMONLY USED DEFINITI
Slide 23: Time to ask questions
23 TIME TO ASK QUESTIONS.
Slide 24: Invitation
24 INVITATION. Invitation to join a webcast on our Brand Strategy on Wednesday, 15 March at 15 h 00 pm (CET).
Slide 25: Presentation & annual report for download
25 PRESENTATION & ANNUAL REPORT FOR DOWNLOAD ON shop-apotheke-europe.com
Slide 26: Thank you for your time
SHOP APOTHEKE THANK YOU FOR YOUR TIME.