Celesio increases double-digit operating result and makes “clear ship” in the half-year balance sheet

14.08.2012 09:42

The measures for the strategic realignment of Celesio, a leading international trading, logistics and service company in the pharmaceutical and healthcare sectors, are making an increasingly positive contribution to operational business development. After declining earnings in recent years and especially in 2011, the company simultaneously increased sales and profits in the first half of 2012. With sales of 11.25 billion euros (plus 1.8 percent), the adjusted operating result (EBITDA) rose by 10.1 percent to 283.5 million euros. As part of its half-year figures, Celesio also announced today that it would sell its wholesale and retail activities in the Czech Republic to the Penta investor group for a total purchase price of 84.5 million euros. The completion of the individual transactions is subject to approval by the Czech antitrust authorities. Value adjustments totaling EUR 228.0 million were made on these and the sales of Movianto and Pharmexx that have already taken place, as well as on the planned divestment of DocMorris and the considered sale of the wholesale business in Ireland. Years ago, high strategic prices were paid for DocMorris, Pharmexx and Movianto in particular as part of the Celesio strategy at the time, which can no longer be achieved in the current market environment. Mainly due to these one-off effects, the annual result fell to -183.9 million euros in the first half of 2012. In view of the positive development in the operating business, Celesio confirms its earnings forecast of achieving adjusted EBITDA for 2012 at least at the previous year's level.

“Our stabilization measures are having an effect; despite the continued difficult markets, Celesio is back on track in its operational business,” emphasizes Celesio CEO Markus Pinger. “We have also made significant progress strategically. We succeeded in selling Movianto, Pharmexx and the activities in the Czech Republic earlier than expected. We can now focus more on accelerating growth in our core business. Our new group structure will further promote Celesio's positive development through significant synergy effects. In addition, we made a clear statement in our half-year balance sheet. We are implementing our strategy step by step.”

Value adjustments totaling 228.0 million euros were made in the first half of the year for the sales of Movianto, Pharmexx and the Czech wholesale and retail trade that have already taken place, as well as for the outstanding sales of DocMorris and the wholesale trade in Ireland. Celesio CFO Marion Helmes: “For some of the companies, prices were paid at the time that were largely based on strategic expectations. The original prices can no longer be achieved in today's market environment and due to the companies' current business development. “That’s why we now had to make the necessary value adjustments on all companies that were intended for sale.”

Celesio's positive operational development is reflected, among other things, in higher profitability. The adjusted EBITDA margin increased from 2.3 to 2.5 percent compared to the previous year. “We also owe this to the effect of the Operational Excellence Program, with which we were able to achieve efficiency improvements and cost savings in the first few months,” emphasizes Marion Helmes.

The business area Patient and Consumer Solutions Adjusted EBITDA before one-time effects improved by 36.8 percent to 132.2 million euros. Sales increased by 6.5 percent to around 1.72 billion euros. The positive earnings development was primarily driven by the good service and OTC business in Great Britain. The pharmacy business also developed positively in Norway and Sweden.

The adjusted EBITDA of the division Pharmacy Solutions At 197.3 million euros, it was 5.1 percent below the previous year. Sales increased slightly by 1 percent to 9.53 billion euros. However, the good development in Germany and the effects from the acquisition of Oncoprod, the leading distributor for specialty pharmaceuticals in Brazil, could not offset the pressures caused by competition and regulation, especially in France and Great Britain.

Yield forecast

In the 2011 financial year, EBITDA adjusted for restructuring expenses amounted to 578.3 million euros. In order to be able to compare the 2011 financial year with the 2012 financial year, the EBITDA for 2011 must be increased by the earnings contributions of the discontinued operations - Movianto, Pharmexx, DocMorris - as well as by the investment result that has been reported in the financial result since this year (and not in EBITDA or EBIT). be cleaned up. On this comparable basis, EBITDA in the 2011 financial year was 549.7 million euros.

Celesio confirms its earnings forecast for the 2012 financial year and assumes that it will be able to achieve an adjusted EBITDA of at least 550 million euros, an amount that will be at least at the level of the 2011 financial year.