Significant revenue growth in the 1st half of the year despite negative market developments in Europe

• Total operating performance and revenue increased despite negative trend in European pharmaceutical market
• Net debt significantly reduced compared with the previous year
• Financial result improved by EUR 29.7 million compared with same period of the previous year
• Profit for the period in line with expectations below prior period`s level
• Successful issue of a second corporate bond in May 2013

The PHOENIX group underlines its position as Europe’s leading pharmaceutical trader in the first half of 2013/14. “In the first half of 2013/14 we performed well in a persistently challenging market environment, with business developing particularly well in Northern and Eastern Europe”, said Reimund Pohl, Chief Executive Officer. Revenues increased by 2.7 per cent compared with the same period of the previous year to EUR 10,807.7 million. The main reason for this is the growth in sales in the largest market, Germany, where the company benefited from a strong growth in the overall market, significantly increasing its market share. Total operating performance, including revenue as well as handled volume (handling for service charge), increased by 2.6 per cent to EUR 12,839.3 million. In contrast, the European pharmaceutical markets recorded zero growth in the second quarter of 2013, after the market volume shrank by 2.0 per cent in the first quarter.

Owing to negative exchange rate effects and the high level of competition in several countries, particularly in Germany, gross profit shrank to EUR 1,032.7 million, in addition to which one-off expenses for the PHOENIX FORWARD optimisation programme adversely affected earnings before interest, taxes, depreciation, and amortization (EBITDA) by EUR 54.3 million to EUR 222.2 million.

The financial result improved by EUR 29.7 million to EUR -52.2 million. Compared with the corresponding period of the previous year, exceptional charges from early refinancing measures declined. Interest expense could be significantly reduced owing to the optimised financing terms and the distinct reduction in net debt as compared with the first half of 2012/13. In May 2013, the PHOENIX group also issued another corporate bond with a volume of EUR 300.0 million, a maturity of seven years, and an interest coupon of 3.125 per cent. This financial measure will also allow the company to benefit from low borrowing costs in the future.

As expected, the improved financial result didn’t fully compensate for the lower EBITDA; the profit for the period therefore fell from EUR 101.7 million to EUR 79.0 million.

Forecast for the 2013/14 fiscal year

Despite the current weak economic growth of the European pharmaceutical market, the PHOENIX group still anticipates a slight increase in revenue for the 2013/14 fiscal year. We expect to partially offset the negative external influences with internal measures and the positive business development in the Northern and Eastern European markets. With regard to the capital structure, measures will be taken to further reduce net debt.

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

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