PHOENIX group’s fiscal year: acquisition amplifies revenue growth

• Largest acquisition in the company’s history completed
• Revenue increase of 18.2 per cent
• Profit before tax at previous year’s level

For fiscal year 2022/23 (31 January 2023), the PHOENIX group has once again presented solid key financial figures in a challenging environment. Strengthened by the completion of the acquisition of parts of McKesson Europe, the healthcare provider has further expanded its leading position in Europe.

In the fourth quarter of fiscal year 2022/23 (November 2022 to January 2023), the acquired parts of McKesson Europe were fully included in the PHOENIX group’s key financial figures for the first time. The company’s total operating performance increased by 15.9 per cent compared with the previous year to €45.9 billion. Total operating performance, which comprises revenue and handling for service charge, is the key figure relevant to pharmaceutical wholesale. In comparison with the previous year, revenue rose by 18.2 per cent to €36.3 billion. Also adjusted for the share of revenue of the acquired McKesson companies, amounting to €3.0 billion, PHOENIX exceeded the growth level of the European pharmaceutical markets. EBITDA before significant one-off effects increased to €723.8 million, 2.6 per cent or €18.1 million higher than in the comparative period. EBITDA, in comparison with the previous year, rose by 53 per cent to €1.0 billion. This included, in particular, a gain of €300.0 million as a one-off effect from the first-time consolidation of parts of McKesson Europe. At €299.8 million, profit before tax was at the level of the previous year (€298.0 million). Profit before tax did not develop in proportion to EBITDA due to impairment losses of €307.3 million.

Acquisition provides additional momentum
“In the reporting year, our performance in terms of revenue and results once again proved robust despite significant cost increases, for example in transport and energy,” says Sven Seidel, Chief Executive Officer of PHOENIX Pharma SE, adding: “The acquisition of parts of McKesson Europe has given us additional momentum. With this acquisition, we have reached a milestone and at the same time taken an important step for the future of the company. In the face of market changes, the PHOENIX group is now on an even broader footing both operationally and geographically.”

Market leadership in Germany maintained
In Germany, the leading pharmaceutical wholesaler recorded a year-on-year revenue increase of 10.9 per cent or €1.2 billion to €11.9 billion. The company thereby participated in the 7.0 per cent growth of the German pharmaceutical wholesale market in 2022. This development was particularly due to an increase in revenue from prescription medicines.

Conditions remain challenging, outlook generally positive
For the fiscal year 2023/24, which began in February, the company continues to anticipate high costs for transport and energy as well as costs due to ongoing shortages in the supply of medicines. As a result of acquisitions, organic growth, and efficiency gains, the PHOENIX group expects to reinforce its market position. For the current year, it projects growth slightly above that of the European pharmaceutical markets and in almost all country markets in which the company is present. For 2023/24, the forecast for profit before tax is below the level of 2022/23. Owing to acquisition effects, higher amortisation and depreciation as well as higher financing costs are anticipated due to a rise in interest rates and net debt. A slight increase is expected in the equity ratio.

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

(Balance sheet date 31/01/2023)
¹ Total operating performance = revenue + handled volume (handling for service charge).
² As at reporting dates 31/01/2022 and 31/01/2023.
 

Related Links

• Annual Report 2022/23