Redcare Pharmacy N.V. · XETR:RDC
Redcare Pharmacy — Shop Apotheke Europe — Q1 2020 Earnings Presentation
27 slides from Redcare Pharmacy's earnings presentation, May 14, 2020
Slide 1: Q1 2020 Earnings Call Presentation
Q1 2020 EARNINGS CALL. PRESENTATION. SHOP APOTHEKE EUROPE STEFAN FELTENS, CEO JASPER EENHORST, CFO 14 MAY 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 HIGHLIGHTS. UPDATE ON CORONA SITUATION. Elevated demand throughout mid-May. No major supply chain issues so far and in the foreseeable future. Re-start of growth investments in new customer acquisition in April. Continued heightened hygiene and tight monitoring to protect workforce and operations.
Slide 5: Highlights Q1 2020
5 HIGHLIGHTS. Q1 2020. Strong start into the year was accelerated by additional demand in March: Consolidated revenues up + 33% to EUR 232 million (fully organic), Rx up by 23%. Gross profit driven by improved sourcing conditions and better net pricing: Gross profit increased by + 53% to EUR 49.9 mi
Slide 6: Impressive Organic Topline Growth. 5 Million Active Customers
6 KEY FINANCIALS. IMPRESSIVE ORGANIC TOPLINE GROWTH. 5 MILLION ACTIVE CUSTOMERS. Group revenues | vs. prior year Group revenues | vs. prior quarter # Active customers (in EUR million) (in EUR million) (in million) +33% +21% +25% 232.0 232.0 5.0 174.6 191.9 4.0 Q1 2019 Q1 2020 Q4 2019 Q1 2020 Q1 2019
Slide 7: Our Customers Are Highly Satisfied
7 OUR CUSTOMERS ARE HIGHLY SATISFIED. ~ 70 ~ 82% NPS-SCORE. OF ALL ORDERS ARE FROM EXISTING CUSTOMERS. SUCCESSFUL LOYALTY PROGRAM WITH HIGHLY ENGAGED CUSTOMERS AND HIGHER BASKETS. 65.15 € <1% AVERAGE SHOPPING BASKET VALUE (Q1 2019: EUR 64.92). VIRTUALLY NO RETURNS.
Slide 8: Strong Web Traffic Growth Continued
8 KPIs. STRONG WEB TRAFFIC GROWTH CONTINUED. Web traffic (in millions) Source: SHOP APOTHEKE EUROPE.
Slide 9: Share of Repeat Orders Above 80%
9 KPIs. SHARE OF REPEAT ORDERS ABOVE 80%. Number of orders (in ‘000) Share of repeat orders (in %) Source: SHOP APOTHEKE EUROPE.
Slide 10: EUR 14 Million Year-over-Year EBITDA Improvement
10 KEY FINANCIALS. EUR 14 MILLION YEAR-OVER-YEAR EBITDA IMPROVEMENT. (in millions of euros) YTD and This Year Q1 Last Year Q3vs. This Q1 Past Q4 Better/ Better/ 2019 2020 Q4 2019 Q1 2020 (Worse) (Worse) Sales 175 232 33% 192 232 21% Gross profit margin 18.7% 21.5% 2.8 pp 19.9% 21.5% 1.6 pp Selling &
Slide 11: Gross Margin Up, Driven by Sourcing Improvements
11 KEY FINANCIALS. GROSS MARGIN UP, DRIVEN BY SOURCING IMPROVEMENTS. HIGHER AVERAGE NET PRICE IMPACTED BY FEWER VOUCHERS AND MIX. Gross margin (in % of revenues) Pricing Sourcing Q1 2019 Sourcing Price & Product Other Q1 2020 Mix
Slide 12: Marketing Reduced During Corona Demand; Labour Better
12 KEY FINANCIALS. MARKETING REDUCED DURING CORONA-DEMAND AFTER PEAK IN Q1 2019; LABOUR BETTER 0.8%. S&D costs (in % of revenues) Q1 2019 Marketing Shipping, Operational Q1 2020 Other Packaging and Labour Payments
Slide 13: Adjusted EBITDA Break-Even Reached Ahead of Schedule
13 KEY FINANCIALS. ADJUSTED EBITDA BREAK-EVEN REACHED AHEAD OF SCHEDULE. Adjusted EBITDA (in EUR million and Q1 vs. Q1 Q1 vs. Q4 % of revenue) –2.8% –1.1% 4.9M 4.9M –9.1M 2.1% –1.8M 2.1% –1.0% –5.2% Q1/2019 Q1/2020 Q4/2019 Q1/2020
Slide 14: Adj. EBITDA Positive Even Without Impact of Corona
14 KEY FINANCIALS. ADJ. EBITDA POSITIVE EVEN WITHOUT IMPACT OF CORONA. Adjusted EBITDA (in EUR million) +4.9M -9.1M Q1 2019 REVENUE GROWTH SOURCING OPERATIONAL ECONOMIES OF CORONA Q1 2020 PERFORMANCE SCALE EFFECTS
Slide 15: Sound Balance Sheet
15 15 KEY FINANCIALS. SOUND BALANCE SHEET. 173.3 Positive operating cash flow of EUR 12.2 million 111.0 in Q1. 43.3 43.3 50.6 (5.6) 12.2 (1.4) 130.0 Investments in Q1 EUR 10.4 million in new logistics center, other PP&E and IT. 67.8 62.7 Cash and short-term financial assets: EUR 173.3 million includ
Slide 16: Today's Agenda
TODAY’S AGENDA. FINANCIAL UPDATE ON BUSINESS AND PERFORMANCE STRATEGY Q+A
Slide 17: From a Pure E-Pharmacy Retailer to a Customer-Centric Platform
17 … TO A FROM A PURE CUSTOMER E-PHARMACY CENTRIC RETAILER … E-PHARMACY PLATFORM.
Slide 18: What's Next? Customer-Centric Services
18 CUSTOMER-CENTRIC SERVICES. WHAT‘S NEXT? ROLLOUT IN 2020: SAME-DAY DELIVERY. NEW IN 2020: MARKETPLACE. NEW IN 2020: ✓ ONLINE DOCTOR SERVICE. EXPANSION IN 2020: ✓ OWN BRANDS.
Slide 19: Increasing Customer Loyalty Value
19 19 CUSTOMER-CENTRIC SERVICES. INCREASING CUSTOMER LOYALTY VALUE. USE OF SERVICES CLV + ++ +++ ++++
Slide 20: The Road to E-Rx in Germany
20 THE ROAD TO E-RX IN GERMANY. 2019 2020 2021 2022 (eRX specification) Infrastructure Telematic Server Mandatory use APP Technical preparation eRx Ramp-up of eRx Draft Law of Safer eRX introduced Patient Data Pharmaceutical in the BMV Protection Act Care Act (GSAV) (Federal (PDSG), expected entered
Slide 21: We Slightly Lift Our Expectation for Adj. 2020 EBITDA
21 LOOKING FORWARD. WE SLIGHTLY LIFT OUR EXPECTATION FOR ADJ. 2020 EBITDA; FULL UPDATE ON GUIDANCE WITH H1. Sales in 2020 to increase by at least 20%. Adjusted EBITDA in FY 2020 now expected to be positive (previously: break-even). Full update on 2020 guidance with the half-year report. Long-term ta
Slide 22: Today's Agenda
TODAY’S AGENDA. FINANCIAL UPDATE ON BUSINESS AND PERFORMANCE STRATEGY Q+A
Slide 23: Consolidated Segment Financials
23 CONSOLIDATED SEGMENT FINANCIALS.
Slide 24: Consolidated Statement of Profit and Loss
24 CONSOLIDATED STATEMENT OF PROFIT AND LOSS.
Slide 25: Consolidated Statement of Financial Position
25 CONSOLIDATED STATEMENT OF FINANCIAL POSITION.
Slide 26: Consolidated Statement of Cash Flows
26 CONSOLIDATED STATEMENT OF CASH FLOWS.
Slide 27: Steps Taken: UN Global Compact Signatory
27 SHOP APOTHEKE EUROPE BECAME A UN GLOBAL COMPACT SIGNATORY. STEPS TAKEN. 10 PRINCIPLES ON HUMAN RIGHTS, LABOUR, ENVIRONMENT AND ANTI-CORRUPTION.