Redcare Pharmacy N.V. · XETR:RDC
Redcare Pharmacy — Shop Apotheke Europe — FY2019 Earnings Presentation
28 slides from Redcare Pharmacy's earnings presentation, Mar 17, 2020
Slide 1: FY 2019 Earnings Call Presentation
FY 2019 EARNINGS CALL. PRESENTATION. SHOP APOTHEKE EUROPE STEFAN FELTENS, CEO JASPER EENHORST, CFO 17 MARCH 2020
Slide 2: Today's Presenters
2 TODAY‘S PRESENTERS. STEFAN FELTENS JASPER EENHORST CEO SHOP APOTHEKE EUROPE CFO SHOP APOTHEKE EUROPE
Slide 3: Today's Agenda
TODAY’S AGENDA. FINANCIAL UPDATE ON BUSINESS AND PERFORMANCE STRATEGY Q+A
Slide 4: Update on Corona Situation
4 UPDATE ON CORONA SITUATION. Temporary but unabated surge of orders. No major supply chain issues so far – exceptions: disinfectants + protective wear. Heightened hygiene and tight monitoring in place to protect workforce and operations. Dynamic situation with high degree of uncertainty.
Slide 5: Highlights FY 2019
5 HIGHLIGHTS. FY 2019. Delivered on our ambitious top line guidance: Consolidated revenues up + 30% to EUR 701 million (28% organic growth). EBITDA margin better than our guidance and last year, driven by better gross profit margins: Adj. EBITDA margin –1.9% (guidance –2.0 to –2.3%), in Q4 –1.0% (Q4
Slide 6: Steps Taken
6 SHOP APOTHEKE EUROPE BECAME A UN GLOBAL COMPACT SIGNATORY. STEPS TAKEN. 10 PRINCIPLES ON HUMAN RIGHTS, LABOUR, ENVIRONMENT AND ANTI-CORRUPTION.
Slide 7: Impressive Organic Topline Growth. 4.7 Million Active Customers.
7 KEY FINANCIALS. IMPRESSIVE ORGANIC TOPLINE GROWTH. 4.7 MILLION ACTIVE CUSTOMERS. Group revenues | YTD Group revenues | Q4 # Active customers (in EUR million) (in EUR million) (in million) Total Total +30% +34% Organic +27% (fully organic) +28% 701.0 4.7 539.7 3.5 191.9 151.2 31DEC2018 31DEC2019 31
Slide 8: Our Customers Are Highly Engaged
8 OUR CUSTOMERS ARE HIGHLY ENGAGED. ~ 70 ~ 81% NPS-SCORE. OF ALL ORDERS ARE FROM EXISTING CUSTOMERS. SUCCESSFUL LOYALTY PROGRAM WITH HIGHLY ENGAGED CUSTOMERS AND HIGHER BASKETS. ~5 PRODUCTS <1% ON AVERAGE PER ORDER WITH EUR 66.85 SHOPPING BASKET (2018: EUR 72.44). VIRTUALLY NO RETURNS.
Slide 9: Strong Web Traffic Growth Year over Year
9 KPIs. STRONG WEB TRAFFIC GROWTH YEAR OVER YEAR. Web traffic (in million) Source: SHOP APOTHEKE EUROPE.
Slide 10: Share of Repeat Orders Above 80%
10 KPIs. SHARE OF REPEAT ORDERS ABOVE 80%. Number of orders (in ‘000) Share of repeat orders (in %) Average basket size (in €) Source: SHOP APOTHEKE EUROPE.
Slide 11: Adjusted EBITDA Margin Up, Driven by Gross Margin Improvement
11 KEY FINANCIALS. ADJUSTED EBITDA MARGIN UP, DRIVEN BY GROSS MARGIN IMPROVEMENT. (in millions of euros) YTD Full Year Q3 Quarter 4 Better/ Better/ 2018 2019 2018 2019 (Worse) (Worse) Sales 540 701 30% 151 192 27% Gross profit margin 18.4% 19.7% 1.3 pp 18.2% 19.9% 1.7 pp Selling & distribution -17.2
Slide 12: Gross Margin Up, Driven by Improved Purchasing Conditions
12 KEY FINANCIALS. GROSS MARGIN UP, DRIVEN BY IMPROVED PURCHASING CONDITIONS. Gross margin (in % of revenues) 0.5% 19.7% 0.1% 0.7% Pricing Sourcing 18.4% 2018 Purchasing Price & Product Full Year 2019 Mix Nu3
Slide 13: Higher S&D Costs; Purposeful Investments in Smart Marketing
13 KEY FINANCIALS. HIGHER S&D COSTS; PURPOSEFUL INVESTMENTS IN SMART MARKETING TO DRIVE STRONG ORGANIC GROWTH. S&D costs (in % of revenues) 0.3% 18.6% 0.2% 0.3% 0.6% 17.2% 2018 Marketing Shipping, Operational Full Year 2019 Packaging and Labour Nu3 Payments
Slide 14: Adjusted Segment EBITDA
14 KEY FINANCIALS. ADJUSTED SEGMENT EBITDA. Full Year Q4 13.4 5.4 11.3 3.5 DACH (in EUR million) INTERNATIONAL (in EUR million) -1.4 -1.1 -4.5 -5.8 2018 2019 2018 2019
Slide 15: Adjusted EBITDA Margin Up vs. First Half of 2019 and Last Year
15 KEY FINANCIALS. ADJUSTED EBITDA MARGIN UP VS. FIRST HALF OF 2019 AND LAST YEAR. Adjusted EBITDA (in EUR million, and as % of revenue) –2.7% H1 –2.8% –1.7% H2 –1.1% -4.0 –4.0M -4.8 –4.8M -7.0 –7.0M -9.6 –9.6M H1/2018 H1/2019 H2/2018 H2/2019
Slide 16: Today's Agenda
TODAY’S AGENDA. FINANCIAL UPDATE ON BUSINESS AND PERFORMANCE STRATEGY Q+A
Slide 17: At a Glance
17 AT A GLANCE. SHOP APOTHEKE EUROPE TODAY. COMBINING OTC, BPC, FUNCTIONAL FOOD & RX OFFERINGS. SPECIAL PATIENT CARE PROGRAMMES. PREPARED FOR E-SCRIPTS. 7 COUNTRIES. 4.7 MILLION ACTIVE CUSTOMERS. 701 M € REVENUE 2019.
Slide 18: From a Pure E-Pharmacy Retailer to a Customer Centric E-Pharmacy Platform
18 … TO A FROM A PURE CUSTOMER E-PHARMACY CENTRIC RETAILER … E-PHARMACY PLATFORM.
Slide 19: What's Next? Customer-Centric Services
19 CUSTOMER-CENTRIC SERVICES. WHAT‘S NEXT? NEW IN 2020: MARKETPLACE. NEW IN 2020: ONLINE DOCTOR SERVICE. EXPANSION IN 2020: OWN BRANDS. ROLLOUT IN 2020: SAME-DAY DELIVERY.
Slide 20: Driven by the Launch of E-Scripts
20 DRIVEN BY THE LAUNCH OF E-SCRIPTS.
Slide 21: E-Script Preparations with a Clear Focus on Patients
21 E-SCRIPT PREPARATIONS WITH A CLEAR FOCUS ON PATIENTS AND THEIR NEEDS.
Slide 22: Venlo 2020: More Than Double the Space for Logistics
22 VENLO 2020: MORE THAN DOUBLE THE SPACE FOR LOGISTICS. MUCH HIGHER DEGREE OF AUTOMATION. TODAY. TOMORROW. 20,000 sqm 40,000 sqm on one level. plus 8,000 sqm on second level.
Slide 23: We Re-iterate Our FY 2020 and Long-Term Guidance
23 LOOKING FORWARD. WE RE-ITERATE OUR FY 2020 AND LONG-TERM GUIDANCE. Sales in 2020 to increase by around 20%. Adjusted EBITDA break-even in FY 2020 re-confirmed (2019: – 1.9%). Long-term target profitability in excess of 6% EBIT re-confirmed.
Slide 24: Today's Agenda
TODAY’S AGENDA. FINANCIAL UPDATE ON BUSINESS AND PERFORMANCE STRATEGY Q+A
Slide 25: Consolidated Segment Financials
25 CONSOLIDATED SEGMENT FINANCIALS.
Slide 26: Consolidated Statement of Profit and Loss
26 CONSOLIDATED STATEMENT OF PROFIT AND LOSS. For the year ended 31 December 2019.
Slide 27: Consolidated Statement of Financial Position
27 CONSOLIDATED STATEMENT OF FINANCIAL POSITION. For the year ended 31 December 2019.
Slide 28: Consolidated Statement of Cash Flows
28 CONSOLIDATED STATEMENT OF CASH FLOWS. For the year ended 31 December 2019.