PHARMASIMPLE: Exceptional impact of the group’s transformation on H1 2022 financial indicators – 10/11/2022 at 6:00 pm

Exceptional impact of the group’s transformation on H1 2022 financial indicators

• Significant drop in internet sales linked to the restructuring of this division

• Rise in Pharmacy revenue, which represents 27% of the total

• Gross margin improvement of 1 million euros

• Deterioration in EBITDA which includes significant reorganization costs

• Operating income heavily impacted by inventory provisions

Houdeng-Goegnies (Belgium), October 11, 2022, 6 p.m. – Pharmasimple (ISIN Code: BE0974302342. Ticker: ALPHS), a company specializing in the online sale of parapharmaceutical products among the leaders in its sector in Europe, presents its 2022 half-year results :

NS

: gross margin = turnover – purchase costs of goods sold – transaction costs, transport and packaging
Half-year 2022 revenue in full swing

Pharmasimple achieved sales of €13.6 million over the first 6 months of 2022, down 14% compared to the same period of the previous financial year. This breaks down into €9.9 million in turnover ^{e-commerce (a decrease of €6.0 million) and €3.7 million in turnover achieved in pharmacies following the acquisition and integration of several pharmacies since the start of the year. No Pharmacy revenue was achieved in 2021. This represents 27% of total activity and is set to grow strongly in the future.} Pharmasimple’s gross margin recovered markedly in the 1

er ^{half of 2022 and reached €2.7 million, i.e. 20% of total turnover. It was up by €1 million, driven by the consolidation of Internet activities and the ramping up of sales in pharmacies.} The group records on the 1

er

first half of 2022 the first results of its transformation plan with e-commerce revenue focusing on the most profitable products and strong growth in Pharmacy revenue. At the same time, the gross margin increases, thus reflecting a virtuous development model.

Profitability negatively impacted by the reorganization
Due to the abandonment of certain activities and the start of sales in pharmacies, Pharmasimple had to restructure its workforce, which resulted in the hiring of new skills to manage the pharmacies and the departure of staff whose positions were no longer suited to the level of e-commerce activity. As a result, personnel costs increased by €1.4 million over the period.

At the same time, non-recurring administrative costs linked to the acquisition of pharmacies (preparation fees

notary, etc.) or capital transactions represented nearly €0.5 million. EBITDA thus shows a loss of €3.6 million.

After allocation of net depreciation charges, as well as exceptional reductions in inventory values, the company ends H1 2022 with an operating loss of €6.0m, twice as high as that of H1 2021.

As of June 30, 2022, net debt amounted to €3.5 million and active cash was €3.6 million.

Continuation of the transformation strategy

Pharmasimple intends to continue the implementation of its transformation aimed at reducing its dependence on e-commerce sales in favor of a powerful pharmacy network that generates profitability.

Michael Willems [email protected]

Full and original press release in PDF format:
https://www.actusnews.com/news/76671-pharmasimple-cp-rs-2022-11.10.22.pdf