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Zur Rose mail order pharmacy grew strongly in the first nine months of 2020 thanks to acquisitions.
As expected, growth accelerated in the third quarter. Orientation for the whole year is also confirmed.
After three quarters of the year, including acquisitions, sales rose 7.6 percent to 1.25 billion Swiss francs, as the group announced Wednesday. In local currency, sales increased as much as 11.2 percent. Excluding acquisitions, revenues increased by 6.6 billion to 1.07 billion.
There was significant growth in all segments in the first nine months. Business in Germany, including the acquired Medpex and Apotal, which was consolidated from mid-August, grew 6.3 percent to 765 million francs. The mail-order pharmacy also made a profit in its local Swiss market, where sales increased 6.1 percent to 435 million Swiss francs. The relatively small “Europe” segment grew a solid 71 percent to 47.6 million Swiss francs compared to the previous year.
With the figures presented, Zur Rose met the expectations of analysts in general. According to the AWP consensus, they had expected sales, including acquisitions, of 1,252 million Swiss francs. While expectations for Germany and Europe were somewhat higher, Switzerland provided a slightly positive surprise.
The group does not release earnings figures after three quarters. For the year as a whole, Zur Rose continues to expect sales growth of 10 percent and then expects a “significant increase in sales” in the following year, particularly due to the introduction of electronic prescriptions in Germany. Over the medium term, the sales target of 3 billion Swiss francs continues to be applied with an EBITDA margin of around 8 percent adjusted for growth initiatives.
Zur Rose shares clearly positive after growth acceleration in Q3
Shares of mail-order pharmacy Zur Rose began trading on Wednesday morning with significant gains. In their comments, analysts unanimously praise the acceleration of growth in the third quarter. Expectations in this regard were met and fears of disappointment by the results in the previous period did not come true.
Zur Rose’s share gained 13.44 percent on the SIX and closed at 240.50 francs. This more than offset the losses suffered the day before of almost 6 percent.
With growth in local currencies of 15.3 percent in the third quarter, Zur Rose returned to normal after a weak second quarter, according to a Jefferies comment. In the German market in particular, development accelerated significantly in the traditionally rather weak quarter with an increase of 18.1 percent. The expansion of active clients from 600,000 to 9.8 million and the confirmed guidance are also positive.
The ZKB is somewhat more skeptical: organically, Zur Rose was able to exceed expectations, but the acquired businesses Medpex and Apotal were less dynamic than expected. Compared to competitor Shop Apotheke, which grew organically by 39 percent in the third quarter, Zur Rose fell significantly, writes the responsible expert.
Warburg analyst Michael Heider also admits that Shop Apotheke is currently growing faster than Zur Rose. However, thanks to technological advantages, he sees the Swiss company best positioned to benefit from the roll-out of electronic prescribing in Germany. The launch of the DocMorris app in Germany in the fourth quarter should also give a new boost.
Steckborn (awp)
