- Revenue and total operating performance further increased
- Successful implementation of the optimisation programme PHOENIX FORWARD
- Profit before tax and profit for the period almost on prior year’s level
- Equity ratio improved to 30.6 per cent
- Successful issuance of another corporate bond in July 2014
- Positive outlook for the fiscal year 2014/15 confirmed
The PHOENIX group consolidates its position in Europe as leading pharmaceutical trader in the first half of 2014/15. “We are pleased with the development in the first half of 2014/15, and our success is confirmed in particular by the improved results of operations in Western and Northern Europe”, said Oliver Windholz, Chief Executive Officer.
Revenue increased by 2.7 per cent compared with the same period of the previous year to EUR 11.1 billion. This is mainly due to an increase in revenue in Germany, Serbia, the United Kingdom, and the Netherlands, as well as in Finland. Total operating performance, including revenue as well as handled volume (handling for service charge), rose by 4.0 per cent to EUR 13.4 billion. In contrast, the European pharmaceutical market recorded growth of only 1.8 per cent in the second quarter of 2014 and 1.1 per cent in the first quarter of 2014.
Gross profit increased by EUR 3.4 million to EUR 1,035.8 million on account of the improved results of operations, especially in Germany, the rest of Western Europe, and Northern Europe. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell only slightly by EUR 3.9 million to EUR 218.3 million. Cost savings generated through the PHOENIX FORWARD optimisation programme had a positive effect. At EUR 116.0 million, profit before tax almost reached the previous year’s level and, in fact, exceeded this level after adjustment for exchange rate effects.
The financial result improved by EUR 3.4 million to EUR -48.8 million. This is essentially owing to the lower average net debt compared with the same period of the previous year, which substantially reduced the interest expense. In July 2014, the PHOENIX group also successfully issued another corporate bond with a volume of EUR 300 million, a maturity of seven years, and an interest coupon of 3.625 per cent. This financial measure will allow the company to benefit from low borrowing costs in the long term. The equity ratio increased to 30.6 per cent (31 January 2014: 29.4 per cent).
The improved financial result nearly offset the slight decline in EBITDA. Consequently, the profit for the period saw a stable development and amounted to EUR 76.8 million (comparison period: EUR 79.0 million).
Forecast for fiscal year 2014/15
The PHOENIX group expects growth of around one per cent for the European pharmaceutical markets in 2014/15. The PHOENIX group expects to further expand its market position in Europe through organic growth and selective acquisitions and thereby increase revenue slightly above the level of growth on the European pharmaceutical markets.
Key figures of the PHOENIX group in comparison with the previous year’s period
| 1st half of 2013/142 in EUR m | 1st half of 2014/15 in EUR m | |
|---|---|---|
| Total operating performance¹ | 12.838,6 | 13.357,5 |
| Revenue | 10.807,0 | 11.102,5 |
| Gross profit | 1.032,3 | 1.035,8 |
| EBITDA | 222,2 | 218,3 |
| Financial result | -52,2 | -48,8 |
| Profit before tax | 116,7 | 116,0 |
| Profit for the period | 79,0 | 76,8 |
1 Total operating performance = revenue + handled volume (handling for service charge).
2 Previous year restated due to the first-time adoption of IFRS11.
| 31 Jul 2013 | 31 Jul 2014 | |
|---|---|---|
| Equity (in EUR m) | 2.177,9 | 2.244,9 |
| Equity ratio (in %) | 29,0 | 30,6 |
| Net debt (in EUR m) | 1.673,3 | 1.807,9 |
| 31 Jan 2014 | 31 Jul 2014 | |
|---|---|---|
| Equity (in EUR m) | 2.161,8 | 2.244,9 |
| Equity ratio (in %) | 29,4 | 30,6 |
| Net debt (in EUR m) | 1.331,6 | 1.807,9 |
