SHOP APOTHEKE EUROPE with strong revenue growth in the first 9 months of 2016.

SHOP APOTHEKE EUROPE N.V. / Key word(s): Quarterly / Interim Statement

2016-11-23 / 07:27


SHOP APOTHEKE EUROPE with strong revenue growth in the first 9 months of 2016.

* Revenues grew by 37 percent to EUR 124.7 million (9M 2015: EUR 91.0 million)
* Revenues from International activities more than tripled to EUR 18.4 million (9M 2015: EUR 5.2 million)
* Adjusted Segment EBITDA in German core business grew to EUR 3.0 million (9M 2015: EUR 0.5 million)
* FARMALINE acquisition and IPO facilitate accelerated international growth

* Strong revenue growth expected for Q4 2016

Venlo/Cologne, 23 November 2016 - SHOP APOTHEKE EUROPE N.V., one of the leading online pharmacies in Continental Europe with a focus on over-the-counter medication (OTC) and pharmacy-related beauty and personal care products (BPC), has again grown strongly over the first 9 months of this financial year and increased revenues by 37 percent to EUR 125 million year on year. The strong business in the German core market and particularly the successful development of the international online shops that SHOP APOTHEKE EUROPE is operating under its brand and the FARMALINE brand, contributed to these results. By acquiring FARMALINE, an online pharmacy with a broad footprint in Continental Europe, in mid-September 2016 and successfully completing its initial public offering (IPO) shortly after the end of the third quarter, SHOP APOTHEKE EUROPE has reached crucial strategic milestones that will enable it to further accelerate the expansion of its business across Continental Europe.

"Our main focus over the past weeks and months has been on establishing the framework to enable our growth plans for the next years. The results for the first 9 months 2016 highlight both the strengths of our German business in which we increased both revenues and profitability as well as the substantial growth potential of the International segment. We will use the IPO proceeds to accelerate the Continental European rollout based on our leading position in the European market," says Michael Köhler, CEO of SHOP APOTHEKE EUROPE.

Increase in active clients and a strong existing customer base drive revenue growth.
The positive development of consolidated revenue and consolidated gross profit was mainly driven by the significant growth of the core segments "Germany" and "International". The revenue in the segment Germany grew by 25 percent to EUR 105.1 million (9M 2015: EUR 84.2 million) based on an increase in active clients to 1.6 million and a consistently high percentage of orders from existing clients while revenues in the segment International more than tripled to EUR 18.4 million (9M 2015: EUR 5.2 million).

The third segment "Germany Services", which combines the online services of the subsidiary Xsite GmbH, also improved and generated revenues of EUR 3.0 million.

Gross profit over the period reached EUR 25.6 million compared with EUR 19.2 million in the first nine months of 2015 and improved across all segments in the third quarter of this financial year.

Profitable growth in the German core market. In the core segment Germany, the focus will be on profitable growth which will benefit from two mediumterm drivers: the already strong market share of SHOP APOTHEKE EUROPE in Germany and the comparatively higher online market penetration, which largely results from existing client orders. This is reflected in the 9 months adjusted segment EBITDA for Germany which improved significantly year on year to EUR 3.0 million (9M 2015: EUR 0.5 million).

As a result of the international expansion strategy and the higher customer acquisition costs in connection with the substantial increase in new customers in the International segment, adjusted segment EBITDA over the first nine months in the International segment declined as anticipated to EUR -3.2 million (9M 2015: EUR -1.2 million).

With EUR 0.7 million as at 30 September 2016, the segment EBITDA in Germany Services fell slightly short of the EUR 0.9 million generated over the same period of the previous year due to internal development projects.

FARMALINE integration completed.
For the fourth quarter of 2016, SHOP APOTHEKE EUROPE anticipates a continuation of the positive revenue trend achieved over the first nine months of this financial year and particularly significant growth of the segment International on the back of the FARMALINE acquisition. The acquisition of the Belgium based online pharmacy, which has already been fully integrated into SHOP APOTHEKE EUROPE and will significantly contribute to sales growth in the fourth quarter 2016 and beyond.

SHOP APOTHEKE EUROPE also targets a year-on-year improvement of its consolidated gross profit margin for the full financial year 2016. The company intends to use the proceeds from its IPO in mid-October primarily for financing the continued growth of SHOP APOTHEKE EUROPE, inter alia by investing in IT infrastructure, increased capacity and additional automation. This investments have already started with the installation of a high-bay warehouse system at the central logistics site in Venlo, Netherlands.

The 9 month interim statement of SHOP APOTHEKE EUROPE is available online. The publication dates for financial year 2017 will be announced in the coming weeks in the investor relations section of the corporate website www.shop-apotheke-europe.com.

SHOP APOTHEKE EUROPE is one of Continental Europe's leading online pharmacies with a portfolio that focuses on OTC medication and pharmacy-related BPC products. The Company operates online pharmacies in Germany, Austria, France, Belgium, Italy, Spain and the Netherlands. In Germany,
TÜV-certified shop-apotheke.com is the market leader in terms of traffic. SHOP APOTHEKE EUROPE delivers a broad range of more than 100,000 original products to about 1.6 million active customers quickly and at a good price. In addition, SHOP APOTHEKE EUROPE provides comprehensive and consistent pharmaceutical services. SHOP APOTHEKE EUROPE generated over EUR 125 million in revenues in the financial year 2015. Headquartered in Venlo (Netherlands), SHOP APOTHEKE EUROPE also has an administration site for its sales and marketing units in Cologne (Germany). The online pharmacy has been listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard) since 13 October 2016.

Trade and public media:
Sven Schirmer
Mobile: +49 152 28 50 63 61
Email: presse@shop-apotheke.com

Financial media:
Bettina Fries
Mobile: +49 172 297 62 43
Email: presse@shop-apotheke.com

This announcement does not, and shall not, in any circumstances constitute a public offering, nor an offer to subscribe any securities in any jurisdiction. The offering was made only on the basis of the securities prospectus issued by the Company in connection with the offering. The shares have already been sold.

This communication is not for publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan. This communication does not constitute or form part of an offer of securities for sale or solicitation of an offer to purchase securities in the United States, Canada, Australia, Japan or in any other jurisdiction in which such offer may be restricted. The securities referred to in this communication have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States, except on the basis of an applicable exemption from the registration requirements or in a transaction not subject to the registration requirements of the Securities Act. There will be no public offering of securities in the United States.

In the United Kingdom, this communication is directed only at persons who: (i) are qualified investors within the meaning of the Financial Services and Markets Act 2000 (as amended) and any relevant implementing measures and/or (ii) are outside the United Kingdom or (iii) have professional experience in matters relating to investments and fall within the definition of "investment professionals" contained in article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or are persons falling within article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Order, or fall within another exemption to the Order (all such persons referred to in (i) to (iii) above together being referred to as "Relevant Persons"). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

This communication contains statements related to future business and financial performance and future events or developments involving SHOP APOTHEKE EUROPE that may constitute forward-looking statements. These statements may be identified by words such as "expect", "intend", "look forward to", "believe", "will" or other words of similar meaning. Such statements are based on current expectations and certain assumptions of SHOP APOTHEKE EUROPE's management, of which many are out of our control. These are subjects to a number of risks and uncertainties. Should one or more of this risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of SHOP APOTHEKE EUROPE may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. SHOP APOTHEKE EUROPE does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.

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