DGAP-News: Celesio AG: Celesio: H1 performance satisfactory overall, in line
DGAP-News: Celesio AG / Key word(s): Quarter Results
Celesio AG: Celesio: H1 performance satisfactory overall, in line with
14.08.2013 / 07:00
Celesio: H1 performance satisfactory overall, in line with expectations
- Earnings forecast for 2013 slightly adjusted to 405 to 425 million euro
due to continued discount competition in Germany and additional negative
- Strategic realignment to continue
Stuttgart, 14 August 2013. Celesio AG's business performance in the first
half year of 2013 was satisfactory overall and in line with expectations.
However Celesio expects the discount competition in the German wholesale
market as well as additional negative currency effects, to continue in the
current financial year. The company therefore adjusts its earnings forecast
for the full year to 405 to 425 million euro. Group sales in the first half
of 2013 fell by 4.6 per cent to 10.7 billion euro compared to the
prior-year period. Unadjusted operating earnings (EBIT) amounted to 202.9
million euro. This corresponds to an increase of 15.3 per cent compared to
the to the unadjusted prior-year value. Compared to the prior-year value
adjusted for extraordinary effects, however, EBIT dropped by 7.9 per cent.
The spokesperson of the Celesio management board, Marion Helmes: 'The
business performance in the first half year was satisfactory overall and in
line with expectations. Unfortunately we do not expect, on current
indications, the discount competition in Germany will decline before the
end of the year. As a result, we see ourselves obliged to adjust the
previous earnings forecast and now expect adjusted EBIT of 405 to 425
million euro for the 2013 financial year.' The previous forecast was at 445
to 475 million euro.
'Celesio is persistently continuing the strategic realignment announced in
autumn 2011. As such, the establishment of centralised procurement
activities and the pilot phase for the European Pharmacy Network are on
track. The Operational Excellence Programme has generated sustainable cost
reductions,' Marion Helmes added.
Based on successful operations of the first pilot pharmacies in the UK and
Italy, Celesio announced in March that it will accelerate the expansion of
the pilot phase. 95 own pharmacies in Europe are supposed to be taking part
by the end of the 2013 financial year. In addition to its pilot pharmacies
in the UK and Italy, Celesio is now also running pilot pharmacies in
Ireland, Norway and Sweden.
Performance of divisions
The Consumer Solutions division, the pharmacy business, posted sales of
1,680.4 million euro, which is 2.3% below the previous year's value (H1
2012: 1,720.3 million euro). This is exclusively due to currency effects as
well as the deconsolidation of the Czech activities. Adjusted for currency
effects and the sale of the Czech activities, sales increased by 1.2 per
cent, mainly through new service contracts in the UK.
Operating profit (EBIT) fell by 8.4% compared to the prior-year value
adjusted for extraordinary effects (unadjusted: + 9.3%) to 95.3 million
euro. The reduction was partly due to currency effects - adjusted for these
effects the EBIT decline amounted to 6.3%.
In the UK, the most important pharmacy market for Celesio, Lloydspharmacy
showed a positive development in operating terms in the first half of 2013.
The closer integration of pharmacy and wholesale activities, which is
facilitated by the new Group structure, is bearing fruit. Further cost
savings were largely achieved through the TIC procurement initiative
(top-in-class procurement) and the Operational Excellence Programme. This
was not quite enough, however, to offset negative effects from government
measures as well as negative currency effects from the weak pound sterling.
The Italian business posted a strong performance. Increases in sales of OTC
products and cost cuts boosted earnings in Italy so that profits clearly
exceeded the prior-year value. In the pharmacy business in Sweden, the
restructuring measures implemented in 2012 and resulting cost savings had a
In the Pharmacy Solutions division, the wholesale business, sales were down
5.0% compared to the previous year at 9,052.7 million euro. This was mainly
due to the deconsolidation of the Czech activities in November 2012 and of
the Irish business in May 2013, the increase of the generics quota in
France, and currency effects.
EBIT of 153.2 million euro was down 8.7 per cent compared to the prior-year
value adjusted for extraordinary effects (unadjusted: + 5.9 per cent).
Despite a positive sales trend, the profit performance in Germany was
massively burdened by the continuing intensive discount competition.
Celesio's pharmaceutical wholesale business in the UK and Norway, however,
showed a strong performance.
There were no adjustments at either Group or division level in the 2013
The 2013 financial year is all about the strategic realignment at Celesio,
with the company persistently continuing on this path. The close
integration of pharmacy and wholesale activities in particular as well
positive as effects from improved procurement activities and the
Operational Excellence Programme will continue to have a positive impact on
the profit development. Adverse exogenous factors such as the continuing
price competition in Germany, however, will work against the positive
trend. The management board is therefore adjusting the previous earnings
forecast and now expects that Celesio will generate adjusted EBIT between
405 million euro and 425 million euro in the 2013 financial year.
Key figures of the Celesio Group
1st half year 1st half year
Revenue EUR m 11,251.1 10,733.0
EBITDA EUR m 242.6 267.5
adjusted 1) 2) EUR m 286.5 267.5
EBIT EUR m 176.0 202.9
adjusted 1) 2) EUR m 220.2 202.9
Profit before tax EUR m 87.2 135.7
adjusted 1) 2) 3) EUR m 158.1 135.7
Retail pharmacies 4) 2,233 2,177
branches 4) 141 132
Net profit/loss EUR m -213.5 -2.4
Employees 4) 45,448 38,407
Net profit/loss EUR m -178.4 85.4
Revenue EUR m -4.6
EBITDA EUR m 10.3
adjusted 1)2) EUR m -6.6
EBIT EUR m 15.3
adjusted 1)2) EUR m -7.9
Profit before tax EUR m 55.6
adjusted 1) 2) 3) EUR m -14.2
Net profit/loss EUR m 98.9
Net profit/loss EUR m -
1) The figures for 2012 are adjusted to eliminate non-recurring income and
expenses from the Operational Excellence Program (including tax).
2) The figures reported for 2012 are adjusted to eliminate special effects
from revaluations required by IFRS 5 (including tax).
3) The figures reported for 2012 are adjusted to eliminate special effects
in the financial result (including tax).
4) Closing figures at the end of the reporting period.
Marc Binder, Celesio AG, +49 (0)711.5001-380
Rainer Berghausen, Celesio AG, +49 (0)711.5001-549
About Celesio Group
As a leading international trading company and provider of logistics and
services in the pharmaceutical and healthcare sector, Celesio takes a
proactive and preventive approach to ensuring that patients receive the
products and support that they require for optimum care. With 38,000
employees, we operate in 16 countries around the world. Every day, we serve
over 2 million customers - at 2,200 pharmacies of our own and 4,100
participants in our brand partnership schemes. With around 130 wholesale
branches, we supply approximately 65,000 pharmacies and hospitals every day
with up to 130,000 pharmaceutical products. Our services benefit a patient
pool of about 15 million per day.
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Company: Celesio AG
Phone: +49 (0)711 5001-735
Fax: +49 (0)711 5001-740
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), München, Stuttgart; Freiverkehr in Hamburg,
Hannover; Terminbörse EUREX
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