DGAP-News: SHOP APOTHEKE EUROPE N.V. / Key word(s): Half Year Results/Change in Forecast Half-year revenues more than doubled: SHOP APOTHEKE EUROPE continues accelerated growth course. 14.08.2018 / 06:59 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- NOT FOR RELEASE OR DISTRIBUTION IN THE USA, CANADA, AUSTRALIA OR JAPAN. Half-year revenues more than doubled: SHOP APOTHEKE EUROPE continues accelerated growth course. * Consolidated revenues rose by 103% to EUR 257.2 million during the first half of the year. * Consolidated gross earnings increased by 71% to EUR 46.4 million. * Segment EBITDA margin improved by 1.1% to +0.25% after -0.84% last year. * EBITDA margin improved from -3.9% to -2.7% * With revenue growing 120% to EUR 202 million, market share in Germany was further expanded. * International revenues rose by 60% to EUR 55 million. * Number of active customers increased by 27% to 2.8 million as of the reporting date. Venlo, the Netherlands, 14 August 2018. SHOP APOTHEKE EUROPE N.V., Continental Europe's leading online pharmacy, has continued its rapid growth course from the beginning of the year. Boosted by the first-time full consolidation of Europa Apotheek following its acquisition in November 2017, SHOP APOTHEKE EUROPE increased its revenues by 103% over the first six months of the current fiscal year to EUR 257.2 million compared to EUR 126.7 million during the corresponding period last year - enabling the company to further strengthen its market share in Germany and Continental Europe. Consolidated segment EBITDA improved from EUR -1.1 million a year earlier to EUR +0.6 million. Relative to revenues, the margin of the consolidated segment EBITDA improved by +1.1% (from -0.84% in 2017 to +0.25% in the first half of 2018). The Management Board now expects revenues between EUR 540 million to EUR 570 million for the 2018 fiscal year (previous forecast: EUR 530 million to EUR 560 million) along with significantly improved profitability. The goal is to achieve a breakeven consolidated EBITDA before one-time costs (after EUR -8.5 million in 2017) with a challenge of up to -0.5% based on the consolidated adjusted EBITDA margin, depending in particular on the fast integration of newly acquired Berlin-based subsidiary nu3 GmbH. SHOP APOTHEKE EUROPE increased its consolidated gross earnings by 71%, from EUR 27.2 million in the first half of 2017 to EUR 46.4 million during the period under review. In line with expectations, the consolidated gross margin declined by 3.5% to 18% due to the higher ratio of prescription medications sold by Europa Apotheek in the Germany segment. A greater share of products purchased from wholesalers during the first half of 2018 had a negative effect on earnings. Nonetheless, consolidated segment EBITDA improved noticeably to +0.6 million compared to EUR -1.1 million a year earlier. Administration & sales cost ratio reduced. First-half 2018 administrative costs adjusted for one-off costs were EUR 7.6 million (2017: EUR 3.9 million); they were reduced to 2.9% relative to revenues (2017: 3.1%). Selling expenses rose at a lower rate than revenues as a result of improvements in efficiency and further automation: They increased by 55% from EUR 29.6 million to EUR 45.8 million. As a result, the sales cost ratio was 17.8%, substantially lower than a year earlier when it was 23.4%. This led to a consolidated adjusted EBITDA of EUR -7.0 million compared to EUR -5 million for the first six months of 2017. The consolidated EBITDA margin improved from -3.9% last year to -2.7% during the first half of 2018. Operational performance indicators further improved; leading online presence. The number of orders increased by 45% compared to a year earlier, reaching 4.0 million (H1 2017: 2.8 million) with the size of the average shopping basket growing around 41%, from EUR 52.7 during the first half of 2017 to EUR 74.18 in the first six months of 2018. During the second quarter of 2018, the average basket size grew to EUR 74.97. The share of orders placed by existing customers increased to 81% over the reporting period after 73% a year earlier. The return rate remained at a minimal level of 0.9% while the ratio of mobile page visits increased to 55% during the second quarter 2018 and 56% during the first half of 2018. The operational performance indicators confirm SHOP APOTHEKE EUROPE'S leading online presence. Segment Germany again posts positive EBITDA. The integration and consolidation of Europa Apotheek contributed to a substantial revenue increase during the first half of the year for the Germany segment. SHOP APOTHEKE EUROPE's largest segment by revenue had profitable growth of 120% compared to the same period a year earlier. Revenues climbed to EUR 202.5 million compared to EUR 92.1 million during the first half of 2017. At the same time, gross earnings were up 78%, from EUR 19.4 million to EUR 34.6 million year-on-year. Due to a higher ratio of prescription medications sold as a result of the integration of Europa Apotheek, the gross margin declined in line with expectations, from 21% in 2017 to 17.1%. Segment EBITDA for the first six months of the year was EUR 3.2 million compared to EUR 2.5 million over the same period last year, leading to a segment EBITDA margin of 1.6% (2017: 2.7%). This takes into consideration effects from the new segment structure and from the loss of other operational income in connection with the integration of Europa Apotheek as well as the impact of the previously mentioned supply bottlenecks for several medications. Preparations for the joint market presence of SHOP APOTHEKE and Europa Apotheek are going ahead as planned and are expected to generate synergies of EUR 2 - 2.5 million per year starting in 2019. Segment International improves EBITDA. Thanks to a strong rise in the number of orders, the segment International contributed to the increase in Group revenues: SHOP APOTHEKE EUROPE also grew its revenues outside of Germany substantially, up 60% to EUR 54.7 million (2017: EUR 34.1 million). The company also further extended its market leadership in Belgium and Austria. Segment gross earnings rose by 59% from EUR 7.5 million to EUR 11.9 million during the reporting period with the gross margin at 21.7%, slightly lower than last year's strong 22.1%. In line with the share expansion in the company's new markets - Italy, France and Spain - the segment also had a sharp increase in customer numbers. Despite the resulting high ratio of orders by new customers - which require greater acquisition costs - segment EBITDA for the first six months of 2018 improved to EUR -2.5 million compared to EUR -3.7 million a year earlier. Guidance updated following the takeover for nu3 GmbH; further acquisitions possible. With the acquisition of nu3 GmbH, which was completed after the reporting date, SHOP APOTHEKE EUROPE is further strengthening its positioning and value creation in its European markets: In addition to the expansion of the product portfolio and the offering of a complementary product offering, the acquisition generates cross-selling opportunities by addressing new customer segments. nu3 GmbH already has a presence in key European countries and is active in the rapidly growing market segment for functional nutritional products. nu3's high quality portfolio of natural and health products, low carb products and sports nutrition includes several strong and established brands. The Management Board expects a strong second half of the year and is updating its guidance for the entire 2018 fiscal year: Taking the consolidation of nu3 GmbH as of July 12, 2018 into account, SHOP APOTHEKE EUROPE's Management Board now forecasts revenues of EUR 540 million to EUR 570 million for the 2018 fiscal year (previous forecast: EUR 530 million to EUR 560 million) along with significantly improved results. The goal is to reach a breakeven consolidated EBITDA before one-time costs (2017: EUR -8.5 million) with a challenge of up to -0.5% based on the consolidated adjusted EBITDA margin, depending in particular on the fast integration of newly acquired Berlin-based subsidiary nu3 GmbH. SHOP APOTHEKE EUROPE intends to continue playing an active role in the ongoing consolidation of the online pharmacy market, particularly in the German OTC market. To ensure that the company can respond quickly and flexibly should interesting business opportunities arise, SHOP APOTHEKE EUROPE has issued convertible bonds worth EUR 75 million to institutional investors. Net proceeds from the issue are primarily intended to finance acquisitions in the OTC segment in Germany to further drive the company's growth in its most developed market. 2018 FINANCIAL CALENDAR. 30 August 2018 Commerzbank Sector Conference, Frankfurt 24 September Goldman Sachs & Berenberg Conference, Munich 2018 14 November Analyst Day with Publication of Q3 results at 2018 Citibank, London 27 November Berenberg West Coast Conference, San Francisco 2018 3 December Berenberg Pennyhill Conference, London 2018 Consolidated Statement of Profit and Loss JUNE 30 2018 JUNE 30 2017 EUR 1.000 EUR 1.000 Revenues 257,231 126,707 Cost of sales -210,803 -99,490 Gross earnings 46,428 27,216 Other earnings 8 1,323 Selling & distribution -50,907 -31,389 Administrative costs -8,970 -4,245 Operating income (EBIT) -13,441 -7,094 Interest earnings 77 71 Interest expenses -2,158 -892 Earnings from financial activities -2,081 -821 Earnings before taxes (EBT) -15,522 -7,915 Taxes on income and earnings 593 -209 Period result -14,929 -8,124 To be allocated to shareholders: -14,929 -8,124 SEGMENT INFORMATION H1 2018. Germany International Consolidated EUR 1.000 EUR 1.000 EUR 1.000 Revenues 202,486 54,745 257,231 Cost of sales -167,932 -42,872 -210,803 Gross earnings 34,554 11,874 46,428 % of revenues 17.1% 21.7% 18.0% Other income 0 7 8 Selling & distribution -31,377 -14,419 -45,796 Segment EBITDA 3,178 -2,538 640 Administrative costs -8,068 Adjusted AE -7,592 EBITDA -7,429 Adjusted EBITDA -6,952 Depreciation -6,013 EBIT -13,441 Adjusted EBIT -12,965 Net finance cost and income tax -1,488 Period result -14,929 Adjusted period result -14,453 ABOUT SHOP APOTHEKE EUROPE. SHOP APOTHEKE EUROPE is the leading and fastest growing online pharmacy in Continental Europe. With the acquisition of Europa Apotheek Venlo in November 2017, SHOP APOTHEKE EUROPE significantly extended its European market leadership with an expanded product range for the whole family in the areas of OTC, beauty and personal care products as well as prescription drugs. SHOP APOTHEKE EUROPE already operates online pharmacies in Germany, Austria, France, Belgium, Italy, Spain and the Netherlands. In Germany, the TÜV-certified shop-apotheke.com is the clear market leader. SHOP APOTHEKE EUROPE delivers a broad range of more than 100,000 original products to over 3 million active customers 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. Media contacts. Trade and popular media: Sven Schirmer Mobile: +49 152 28 50 63 61 Email: [email protected] Financial media: Thomas Schnorrenberg Mobile +49 151 46 53 13 17 Email: [email protected] Investor relations: Dr. Ulrich Wandel Phone: +31 77 850 6117 Email: [email protected] DISCLAIMER. This release contains statements that relate to future business performance and future financial performance, as well as to events or developments pertaining to SHOP APOTHEKE EUROPE, and that may constitute forward-looking statements. These statements are based on current expectations and assumptions by SHOP APOTHEKE EUROPE's management, a large number of which are beyond the control of SHOP APOTHEKE EUROPE. They are therefore subject to a variety of risks and uncertainties. If these risks and uncertainties materialize, or the underlying expectations do not materialize or the assumptions made prove incorrect, actual events, both in a positive and negative sense, may differ materially from those described or implied in the forward-looking statements. SHOP APOTHEKE EUROPE undertakes no obligation to update these forward-looking statements or to correct them in any other than anticipated development. SHOP APOTHEKE EUROPE also does not intend to do so. --------------------------------------------------------------------------- 14.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: SHOP APOTHEKE EUROPE N.V. Dirk Hartogweg 14 5928 LV Venlo Netherlands Phone: 0800 - 200 800 300 Fax: 0800 - 90 70 90 20 E-mail: [email protected] Internet: www.shop-apotheke-europe.com ISIN: NL0012044747, DE000A19Y072 WKN: A2AR94, A19Y07 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 713845 14.08.2018