- Market leadership in pharmaceutical wholesale and pharmacy retail expanded
- Total operating performance (€34.5 billion; +4.5 per cent) and revenue (€27.3 billion; +5.9 per cent) increased
- Growth in Germany and particularly in Eastern Europe
- Positive outlook for fiscal year 2020/21
In the past fiscal year 2019/20 (31 January 2020), the PHOENIX group expanded its leading position as a European pharmaceutical wholesaler and pharmacy operator. The company also anticipates growth in revenue and result for the current fiscal year 2020/21. During the coronavirus pandemic, the healthcare provider succeeded in its role as an essential pillar of healthcare. “Even in very difficult circumstances, we ensured that millions of people in Europe were able to obtain their drugs reliably and quickly at all times,” stressed Sven Seidel, Chief Executive Officer of PHOENIX Pharma SE.
PHOENIX group increases total operating performance and revenue
The PHOENIX group, active in 27 European countries, further improved key financial figures in the past fiscal year. Its total operating performance rose to over €34.5 billion. This key figure, which is relevant to pharmaceutical wholesale and comprises revenue and handled volume, increased by 4.5 per cent compared with the previous year. Revenue rose by 5.9 per cent to €27.3 billion. The Eastern Europe region made a particularly strong contribution to the revenue growth.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell slightly to €469.8 million (without application of IFRS 16 – an accounting standard governing accounting for leases). This was due in particular to non-recurring expenses. In fiscal year 2019/20, the company recorded impairment losses on goodwill in the United Kingdom, Romania, and Germany. In the United Kingdom, this is due to a further reduction in pharmacy remuneration by the National Health Service (NHS). In Romania and Germany, it was caused by a growing need for working capital. As at the reporting date of 31 January 2020, the equity ratio stood at 32.5 per cent (without application of IFRS 16). The profit for the period developed positively to €44.4 million (without IFRS 16). The number of employees in Europe increased by 5 per cent to more than 39,000, primarily as a result of acquisitions in the Netherlands, Romania, Serbia, and the Czech Republic.
Position in Germany strengthened further
The German market is very important for PHOENIX because it accounts for 33.7 per cent of total revenue. The company developed successfully with a revenue increase of 3.6 per cent to €9.2 billion, which represents growth of €317.6 million compared with the previous year. The PHOENIX omnichannel concept “deine Apotheke” (your pharmacy), which is available to all community pharmacies in Germany, supports them with increasing digitalisation. With components such as the “deine Apotheke” smartphone app, Germany’s largest loyalty programme PAYBACK, and the first women’s magazine in German pharmacies, PHOENIX allows community pharmacies to become digital and remain a pharmacy at the same time. Attracting new end customers and retaining existing ones is at the centre of the pharmaceutical wholesaler’s in-store and digital concept.
Positive outlook for fiscal year 2020/21
For 2020/21, the company expects an increase in revenue slightly above the level of growth on the European pharmaceutical markets and revenue growth in nearly all markets in which it is present. For earnings before taxes, the PHOENIX group expects a level above that of the previous year. A slight increase is also expected in the equity ratio. “We are positive about the current fiscal year. We will continue to support the company’s ongoing successful growth and promote stable healthcare in Europe,” concluded Seidel.
Key figures of PHOENIX Pharma SE compared with the same period of the previous year
|Total operating performance2||33,045.1||34,517.9|
|Profit before tax||−30.8||122.6|
|Profit for the period||−112.0||44.4|
|Equity ratio (in %)||33.5||32.5|
(Balance sheet date 31/01/2020)
1 2019/20 without application of IFRS 16 .
2 Total operating performance = revenue + handled volume (handling for service charge).
3 Total income = gross income + other operating income.