- Fiscal year 2013/14 proceeded according to expectations
- Revenue and total operating performance increased and outperformed the European pharmaceutical market
- Higher revenues in Germany, the largest market
- Net debt reduced by EUR 279.9 million
- Equity has grown to EUR 2,161.8 million
- Successful issuance of a second bond in May 2013
The PHOENIX group continued to secure its position as Europe’s leading pharmaceutical trader in the fiscal year 2013/14, despite the challenging European market environment. Revenue rose by 2.7 per cent to EUR 21,792.4 million. This was due to the higher revenues in Finland, Italy, the Netherlands, Serbia, Slovakia and Germany, the largest market, where the company was able to gain significant market shares
Total operating performance, which includes revenue as well as the so-called handled volume (handling for service charge), increased by 2.6 per cent to EUR 25,917.4 million. Revenue and total operating performance have thereby outperformed the European pharmaceutical market, which only grew by a moderate 0.8 per cent overall in 2013. “Due to our sustainable strategy as a family business with a long-term vision, we were able to perform much better than the European pharmaceutical market. An important success factor for the PHOENIX group is the right balance between further growth and cost awareness”, said Oliver Windholz, Chief Executive Officer of the PHOENIX group.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased from EUR 553.6 million to EUR 440.5 million. The negative impact was caused by the decline in income in Germany, exchange rate effects, and restructuring costs relating to the PHOENIX FORWARD programme. Profit before tax decreased from EUR 230.7 million to EUR 143.1 million; the adjusted profit before tax amounted to EUR 253.1 million.
Further improvement in capital structure and financial result
The financial result continued to improve from EUR –136.7 million to EUR –105.3 million, owing to the reduction of net debt and the consistently high cash flow. The ratio of net debt to adjusted EBITDA remained stable below 3.0x at 2.89. Equity rose from EUR 2,103.8 million to EUR 2,161.8 million. The equity ratio increased further to 29.4 per cent. Both the company and bond rating continue to be rated “BB” with a stable outlook. The PHOENIX group successfully issued another corporate bond in May 2013, following its inaugural bond in July 2010. The seven-year bond has a volume of EUR 300 million and a very favourable interest coupon of 3.125 per cent p.a.
Furthermore, on 25 April 2014, the PHOENIX group extended the existing syndicated loan agreement of EUR 1.05 billion with 15 German and international banks on improved terms until 2019. Besides the optimised credit conditions, the PHOENIX group is thus securing the currently favourable financing terms for a further five years. “By extending the loan agreement on advantageous terms, our liquidity supply is secured in an optimal manner, enabling us to successfully develop the company”, according to Windholz.
Implementation of the PHOENIX FORWARD optimisation programme
Within the scope of the PHOENIX FORWARD optimisation programme, many measures have been defined and already partially implemented in the fiscal year 2013/14. “As part of PHOENIX FORWARD, we are optimising our structures and processes in all 25 countries from a position of strength. As a result, our organisation is becoming even more effective”, said Windholz. In January 2013, the company announced the launch of PHOENIX FORWARD. The aim of the programme is to attain sustainable cost savings of at least EUR 100 million across the group. The full savings effect should be achieved by the end of the fiscal year 2015/16.
Increase in revenue anticipated for fiscal year 2014/15
The PHOENIX group expects that it will continue to expand its market position in Europe through organic growth and selective acquisitions and thus achieve an increase in revenue in the fiscal year 2014/15. The company expects an improved result for the fiscal year 2014/15. In addition to the increase in total income, cost savings from the PHOENIX FORWARD programme will contribute to this improvement.
Key figures of the PHOENIX group in comparison with the previous year
in EUR k
in EUR k
|Total operating performance¹||25.251.336||25.917.392|
|Adjusted profit before tax³||329.156||253.099|
|Profit before tax4||230.723||143.097|
|Free cash flow||337.659||304.158|
(Reporting date: 31 January respectively)
¹ Total operating performance = revenue + handled volume (handling for service charge)
² Total income = gross profit + other operating income (previous year adjusted due to changes in reporting)
³ Adjusted for impairment losses on goodwill, effects from sale of financial assets, one-off effects related to the refinancing measures in 2012, as well as expenditures associated to the PHOENIX FORWARD optimisation programme
4 Prior year figure was restated due to amendments to IAS 19R