Redcare Phamacy Unsp/Adr

Good morning, everybody. Welcome from Zevenen, the Netherlands. It's 11 o'clock local time here. And Monica Ambrosi and myself are very happy to be able to share with you today's numbers. We will present them and it will be followed by a Q&A session, as always. Today, the first of August, is also the first official working day from Olaf Heinrich, the new CEO. And as of upcoming quarter three, Today, very happy that Monica is again here, just like past quarter. So presenting from here, indeed, the agenda is straightforward. It's the same structure as always, starting with the financial performance of quarter two and with that of the first half of 2023, an update on business and strategy, and then our outlook for the future. Financial performance and the Q3 Financial Highlights. Continued fast growth. And perhaps that's a little bit a soft title because actually our growth was 46% in Q2 and with that 34% over the first six months of this year compared to last year. If you go to an Apple and Apple comparison, Everything is still beyond 20%. The growth in Q2 was 25%, and with that, the first half of the year, 24%. The non-Rx growth, a KPI, for Redcliffe Pharmacy actually accelerated from the already above Free Organic without any acquisitions after six months. The driver of the increase is loyalty of our existing customers, but at the same time also an ever-increasing base of active customers. We as a company founded in 2001 were very happy with the milestone that we achieved in the second quarter of more than 10 million active customers. We gained this year alone, over the first six months, 0.8 million customers. Compared to the second quarter of last year, the increase was 1.5 million active customers, and we ended at an exact number of 10.1 at the end of June. Equally important, the Net Promoter Score indicator of customer satisfaction that we tracked carefully was ever higher. It was even above 70. While we are growing a shop apotheke really fast and continue to grow double digit and perhaps even increase our momentum, bullet number four is equally important. Major year over year Ibera improvement. We ended year two at a 3.2%, which was year over year and more on that later, an increase of 5.3 percentage points. And we ended the first half of the year at 2.8, which was a year For us, it's important also if you look at what, for example, DACH is reporting at the moment, even if you exclude mainly surface in both quarter one and quarter two, the DACH adjusted even a margin while growing 25% organically. And so a fast growth was already between five and 6%. So everything that we report today is for us a proof of our longer term and an adjusted EBITDA margin in the mid to longer term in excess of 8%. This is exactly what we are executing. Main service is included since middle May. We expect a full year impact this year for the seven and a half months of around 300 million and an EBITDA margin between 2% and 3%. The exact numbers for H1 were 60 million and both a net profit and an EBITDA of 1 million. The second tool Of course, a major contributor is the positive EBITDA, the adjusted EBITDA that we achieved. We also had the 29 million one-off related to the transaction with Kalenica. And there was also a part where you can see there was favorable timing and also some seasonality as to working capital movements, which will in part also most likely reverse in the second half of the year. Our estimate of what the second half of the year will bring, we were able to raise our guidance. Not our X, up from 10 to 20% to a growth of 20 to 30%, and an adjusted EBITDA margin raised to a range of a positive 1.5 to 3%, later more on the total guidance. Our fast sales growth continues. Over the six months, an increase of 33.8% for the total company, so 33.8% over the six months, 46% in the second quarter, and non-RAPs, fully organic, had a growth for the total group of 24.9%. The non-RAPs in DAG increased with 25.5%, and in international, Phamacy Unsp & Adr But how did we achieve those strong sales, Monika?

Thank you, Jasper. Indeed, as you mentioned in the highlights, the strong increase in some of our non-financial KPIs, including the promoter score and the active customer base, supported these strong results. We see that the active customer base increased by a constant 0.4 million for the past three quarters. taking us to an active customer base of 10.1 million by the end of June, which is an increase of 1.5 million over the same period last year. And over that period, the increase was seen across all of our countries. In terms of the measure of customer satisfaction, the Net Promoter Score, as you've already said, it's been at a high level of at or above 70. in the past quarter and also in the first half of the year. It was at 71. In fact, anything that is 60 or above when we talk about Net Promoter Score is extremely strong and a really strong indicator of very happy and satisfied customers. So the fact that for the past six quarters we have consistently been above 70 should speak for itself as to the strength of that. And then looking at the average shopping basket value, as in the first quarter, in the second quarter, there was an increase in that average of around one euro compared to the same period last year. Moving on to the total number of orders that were received and processed during the second quarter, it was again at a very high level. of 7.1 million, quite an increase over the same period of last year's, which was 5.8 million. And we, again, are seeing a continuation of this upward trend in this KPI. If we look at the share of repeat orders within the total, again, at a high of 84% for the third consecutive quarter. And again, it underlines how Phamacy Unsp& Very loyal customers that are extremely happy are supporting the strong results of the group. Phamacy Unsp& Yeah, thank you.

Great. So here all the numbers from sales up to and including the adjusted EBITDA and for reference and transparency sake also for reference to fully loaded EBITDA at the bottom. So the header of this slide is effectiveness, efficiency, I'm very happy that we included for the first time, as of the mid of May, also the sales and the total contribution of May service into the numbers. And please note that because of May service unit economics, which are prescription drug sales, so specialty RX sales with an attractive high average price and average order value, is below our average gross profit, but the inverse you see at the selling and other expenses as a percentage of sales. So some impact on lowering the total group gross profit margin, but at the same time also lowering, which is positive, the expenses as a percentage of sales. And actually, the impact on the adjusted EBITDA margin is negligible because the current performance of mainly service and the adjusted EBITDA margin of the Red Care Pharmacy businesses is roughly in the same ballpark, so on the logistic EBITDA margin having virtually no impact at the moment. So sales in the quarter from 287 million last year, an increase to 420 million this year, 46% up. In the first half of the year, we increased exactly with 200 million from 592 to 792 in increase The adjusted EBITDA margin increased at the same time in the second quarter from a minus 2.1% fully loaded adjusted EBITDA last year to a positive 3.2% this year and later in the riches we will dive a little bit deeper on the details. An increase of more than 5 percentage points. with already a strong quarter one. The total six months together with quarter two is leading to a change from last year minus 1.8 to a positive 2.8 this year, and that's up 4.6 percentage points. Panning the sales or multiplying the sales and the margin is bringing us to the adjusted EBITDA. Really noteworthy is that last year due to our adjusted EBITDA was minus six, This year it's plus 13, so that's an increase in one quarter year over year of 90 million while continuing to grow really fast. And in the first half of the year from minus 10 last year to a positive 20 million is a 32 million increase. And in reference to the fully loaded EBITDA, you actually see that the year over year increase is even more than from the adjusted EBITDA. And that's the fact that our adjustments have Phamacy Unsp & Adr Phamacy Unsp And over the first six months of 2022, our gross profit margin last year stood at 27.2. And we achieved an increase of in total 0.9 to 28.1. And this increase of 0.9 is basically the effect of an increased gross profit margin. And that's thanks to the hard work of our category management, our purchasing, our analytics, controlling, IT departments that all cooperated in improving the average margin and the total proposition to our customers with the most relevant and successful assortment. Total increase to 28.1, including Mayday service, is 26.5. The increase, if you go to the right side of the slide, of the Apple to Apple comparison of the gross profit margin in Q2 was 0.7, 27.8 to 28.5. And on this slide is the selling and distribution expenses as a percentage of sales. Last year, after six months, it was 25.7%. And on an Apple to Apple base, it improved year over year with, in total, 3.5 percentage points to 22.2. Three blocks are important here. Of course, it's clear that marketing as a percentage of sales is lower. I'm not saying marketing is lower, but as a percentage of sales. Please remember that last year we were also pushing really for returning to even faster sales growth. And this year we achieved a lot of sales growth. Equally important and making us very proud are the second and the third building blocks that you're seeing here. Because despite the fact that we are in an inflationary environment for labor and also for energy costs over the past years, you can see that the total of shipping and packaging was virtually equal to last year's percentage of sales on actually increased 0.1 percentage points. And you see that several initiatives and developments have worked together there. For example, you see that we work together with last mile service providers on pre-sorting the orders before we ship them to them. Phamacy Unsp & And you also see the benefits of us growing and the scale that we are achieving being successful across Europe. Phamacy Unsp & Also Monica already set the average basket value increase of a euro is helping to improve the numbers on this slide. Phamacy Unsp & Operational Labor same story is reflective of increased efficiency that we have been able to achieve in our logistics distribution centers all in all, an apple to apple increase. of 3.5% at this point. If you include mainly service, it's even 1.4% better, ending after six months at 20.8%. The 3.5% over the first six months is an increase in the second quarter of 4.3% at this point, what you see at the right side. There was a lot of margins, and if we then go to the cash flow side, please. We started the year on the 1st of January with 180 million of cash in cash equivalents. So that's in the definition of our cash, but also including short-term fixed deposits, for example. So the other financial assets. So we started with 180 million and we ended at 244 at the end of June. Building block number one of the four, the adjusted EBITDA of 22 million is resulting in a 90 million in flow of operating results over the first six months. Then a very positive working capital development of 58. But please note that the end of June was the favorable timing as to the payables position that we had both at the main service and at the core of shop apotheke. So a part of that will most likely reverse in the second half of the year. Phamacy Unsp & Adr Phamacy Unsp & Adr Switching from the finance to the general business and strategy updates, our highlights over the first six months. In quarter one already, we were promoted by MSCI to a triple A rating for our sustainability. So we already stood at a double A, a shop apotheker, but in quarter one, we were awarded with a triple A, which is the highest category that MSCI is applying. and with that we are according to their standards in the top four in our industry globally. So in the top four as to sustainability, social and governance. Also in this first half of the year, we rebranded Red Care Pharmacy after almost 20 years of shop apotheke to Red Care Pharmacy on the corporate level. We started a strategic partnership Phamacy Unsp & Adr We are happy that today is, as I said already, actually the first official working day of Olaf Heinrich as the new shop, red care pharmacy CEO. And also here, reflective of our valuation, we were promoted to the index. And then very important, the last bullet point, a bit more on that later. In June, and then later also a bit more in July, but on the 22nd of June, all the shareholders of Gematik, They announced the full support of making ERX the standard in Germany. On the 22nd of June, they said, now that there is the health card solution, we will support the doctors, the pharmacies when needed with the aim to have ERX available for everybody in Germany before the end of the year to be ready for the expected mandatory use of E-Script by the start of Monica.