First half-year 2019/20: PHOENIX group improves its earnings

• Significant rise in profit compared with same period of previous year
• PHOENIX agrees purchase of 20 pharmacies in the Netherlands with Thio Pharma Pharmacies
• Outlook for 2019/20 remains positive

The further expansion of the business has brought more revenue and profit for the PHOENIX group in the first half-year 2019/20 (February to July 2019). The healthcare provider with activities in 27 countries across Europe achieved a revenue increase of 6.1 per cent (31 July 2019) to €13.3 billion. The growth was due in particular to the Eastern Europe region and the acquisition of the Romanian pharmaceutical wholesaler Farmexim and the nationwide pharmacy chain Help Net in July 2018. “As well as increased revenue, the PHOENIX group has also recorded profitable growth,” stated Oliver Windholz, Chief Executive Officer of PHOENIX Pharma SE. EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew by 7.3 per cent to €224.6 million. Profit after taxes rose by 16.7 per cent in the first half-year to €96.6 million. Total operating performance, a particularly relevant figure for pharmaceutical wholesale, also increased by 5.3 per cent to €16.9 billion. This key figure comprises revenue and handling for service charge.

Positive outlook for the full year 2019/20
For the full fiscal year 2019/20 (31 January 2020), the PHOENIX group expects to further improve its position in the European markets thanks to organic growth and targeted acquisitions. The company anticipates revenue above the growth level of the European pharmaceutical markets, with increases in almost all markets in which it is active. In terms of EBITDA, the PHOENIX group expects that the 2019/20 level will exceed that of the previous year, 2018/19. 

PHOENIX strengthens its activities with Dutch Thio Pharma Pharmacies
In July 2019, the PHOENIX group signed an agreement to acquire 20 pharmacies in the Netherlands with Thio Pharma Pharmacies. The company already operates more than 300 of its own BENU pharmacies in the country. The approval of the relevant antitrust authorities for the purchase of the Thio pharmacy chain with around 300 employees is pending. With the acquisition of Thio Pharma Pharmacies, the PHOENIX group is strengthening its position as the best integrated healthcare provider in the Netherlands and across Europe. “The expanded pharmacy portfolio is in line with our three strategic aspects of ‘depth, breadth, and digitalisation’, which means that the PHOENIX group is aiming to position itself more deeply, with more pharmacies, more broadly, with more services, and sustainably, with digital offerings, in 27 countries,” explained CEO Windholz. He continued: “In the medium term, we will transfer the pharmacies to our corporate brand BENU, which will bring us even closer to our customers and the end consumers in the Netherlands.”

Key figures of PHOENIX Pharma SE compared with the same period of the previous year

(Balance sheet date 31/07/2019)
¹ Without application of IFRS 16 Leasing.
² Total operating performance = revenue + handled volume (handling for service charge).
³ Total income = gross income + other operating income.
⁴ As at reporting dates 31/07/2018 and 31/07/2019.

Related Links

• Half-year Report 2019/20