PHOENIX group once again increases revenue and profit for the period in third quarter of 2014/15

• Sustained strengthening of market position as an integrated healthcare provider in Europe through planned acquisition of Mediq Apotheken Nederland B.V.
• Position as a leading pharmaceutical trader in Europe underlined
• Total operating performance and revenue increased again
• Profit for the period significantly exceeds previous year’s value
• Successful implementation of PHOENIX FORWARD optimisation programme
• Positive outlook for fiscal year 2014/15 confirmed

The PHOENIX group underlined its position as Europe’s leading pharmaceutical trader in the first three quarters of 2014/15. “We are pleased with the development – the improved results of operations in Western and Northern Europe in particular confirm that we are heading in the right direction. With the planned acquisition of Mediq by our fully consolidated company Brocacef in the Netherlands, we are making a major step towards becoming an integrated healthcare provider in Europe”, said Oliver Windholz, Chief Executive Officer.

Overall, the PHOENIX group has developed better in its market environment than the market as a whole. Revenue increased by 3.2 per cent compared with the same period of the previous year to EUR 16.7 billion (3.8 per cent when adjusted for exchange rate effects). This primarily relates to the increase in revenue in Germany, where the pharmaceutical wholesale market showed a noticeable marked growth. Higher revenues were also recorded in the majority of our foreign markets. However, low overall growth was observed in the European pharmaceutical markets. Total operating performance, including revenue as well as handled volume (handling for service charge), rose by 4.8 per cent to EUR 20.2 billion (5.8 per cent when adjusted for exchange rate effects).

Gross profit increased by EUR 22.4 million to almost EUR 1.6 billion. The gross margin declined slightly from 9.5 per cent to 9.3 per cent, largely as a result of the high level of competition in various countries. Adjusted for exchange rate effects, EBITDA remained at the level of the previous year. Profit before tax significantly increased by EUR 12.7 million to EUR 188.9 million compared with the same period of the previous year.

The financial result improved by EUR 18.2 million to EUR -62.1 million. The positive development of the financial result was due, on the one hand, to the repayment of the high-yield bond issued in 2010 and, on the other hand, to the lower average net debt. The equity ratio rose further to 32.3 per cent (31 January 2014: 29.4 per cent).

The profit for the period increased to EUR 127.4 million (comparison period: EUR 119.4 million).

Forecast for fiscal year 2014/15

A stable overall economic environment is still expected. For 2014/15, market growth of around 1 per cent is anticipated for the European pharmaceutical markets. Health policy measures in various countries will have a dampening effect on growth.

For the fiscal year 2014/15, the PHOENIX group anticipates that it will continue to expand its market position in Europe through organic growth and selective acquisitions, and thus achieve an increase in revenue that is slightly above the growth rate of the European pharmaceutical market. A slight growth in revenue is therefore expected for the German and the Western European market in particular. Overall, stable development is anticipated for the markets of Northern and Eastern Europe. A slight increase in EBITDA is forecast, which is likely to exceed the revenue growth as a per centage. In addition to the increase in total income, cost savings from the PHOENIX FORWARD programme will contribute to this improvement. A further increase in the equity ratio is expected mainly as a result of the planned development of revenue.

Key figures of the PHOENIX group in comparison with the previous year’s period

¹ Total operating performance = revenue + handled volume (handling for service charge)

² Previous year adjusted due to the first-time application of IFRS11