PHOENIX group registers a surge in earnings

• Record figures in 2017/18 with total operating performance at €31.5 billion and revenue at €24.9 billion
• Entry into the Romanian market
• Expansion to over 2,200 own pharmacies across Europe
• Fiscal year 2018/19: positive revenue development expected

The PHOENIX group has ended the past year with a significant increase in its revenue and result. In the fiscal year 2017/18 (31/01/18), earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew by 9.0 per cent to €468.0 million. This positive development was primarily attributable to the consolidation of Mediq Apotheken Nederland B.V. – one of the largest acquisitions in the history of the company – as well as to measures to improve efficiency.

The healthcare provider, which operates throughout Europe, saw its total operating performance rise by 4.3 per cent to €31.5 billion, the highest level so far in the company’s history. This figure comprises revenue and handled volume. The PHOENIX group’s revenue stood at €24.9 billion, an increase of 1.9 per cent on the comparison period. In terms of the European markets, revenue for 2017/18 grew in three quarters of the group’s countries in comparison with the previous year. “For eight years, we have achieved stronger growth than the market, a remarkable accomplishment in our industry,” said Oliver Windholz, Chief Executive Officer of PHOENIX Pharma SE.

Acquisitions underline leading position of the PHOENIX group

Once again, at the presentation of the balance sheet in Mannheim, Oliver Windholz was confident about the current year: “For 2018/19, we expect renewed revenue growth despite a difficult market situation.” The acquisition of the “Goodwill Apoteka” pharmacy chain in Serbia, which took place after the end of the fiscal year, is contributing to this growth. With the addition of these pharmacies, PHOENIX as the market leader in Serbian retail now operates more than 300 pharmacies locally. With its market entry in Romania, PHOENIX is further expanding its leading position in Europe. In April 2018, the healthcare provider signed a purchase agreement for the takeover of the Romanian pharmaceutical wholesaler Farmexim S.A. and the nationwide pharmacy chain Help Net Farma S.A. The acquisition is subject to approval by the antitrust authorities.

Large investment programme

In wholesale, PHOENIX invested in major projects, particularly in Norway, Denmark, and Germany that improve the efficiency of the company’s warehouse logistics and increase productivity. In the past year, the company invested a total of €207.4 million in property, plant and equipment as well as intangible assets. A new distribution and logistics centre was opened in Gotha, supplying pharmacies all over central Germany. In Norway, the company has fully automated its logistics processes. In Køge, Denmark, the commissioning of a supersized logistics centre is scheduled for autumn 2018.

In retail, the number of own pharmacies (BENU, Apotek 1, and Rowlands Pharmacy) grew to more than 2,200. With the acquisition in 2017 of DeclaCare, the Dutch service provider for modern wound care, the group expanded its position as an integrated healthcare provider in the Netherlands. There, PHOENIX now serves its patients in an exemplary way combining healthcare services from logistics, wholesale, and own pharmacies.

Foundation for continued positive development of the company

“For companies like PHOENIX, digitisation is both a challenge and an opportunity. With this in mind, we took a number of important steps during the fiscal year 2017/18,” said Oliver Windholz. In the past year, PHOENIX acquired the research and consultancy firm Medaffcon in Finland and introduced a Business Innovation department, which focuses on the development of new business areas and digital solutions geared towards consumers.

The PHOENIX group has a robust financial structure to secure its future growth. Equity rose from €2.64 billion to €2.65 billion, essentially due to the group result. The equity ratio increased from 30.5 per cent in the previous year to 31.7 per cent in 2017/18.

“As a family-owned business with a stable shareholder structure, we make decisions independently and pursue a long-term strategy in order to grow profitably through organic increases in revenue and targeted acquisitions,” explained Windholz. In the past fiscal year, this position was strengthened once again by the founding of the new umbrella company PHOENIX Pharma SE.

Key figures of the PHOENIX group compared with the same period of the previous year

(Balance sheet date 31/01/2018)

¹ Total operating performance = revenue + handled volume (handling for service charge).
² Total income = gross income + other operating income.

Related Links

• Annual Report 2017/18