PHARMASIMPLE: PHARMASIMPLE: Exceptional impact of the group’s transformation on H1 2022 financial indicators – 10/11/2022 at 20:10

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 e-commerce turnover (i.e. 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 beginning 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 significantly in the first half of 2022 and reached €2.7 million, or 20% of total sales. It was up by €1 million, driven by the consolidation of Internet activities and the ramping up of sales in pharmacies.

The group recorded the first results of its transformation plan in the first half of 2022, 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-current administrative costs related to acquisitions of pharmacies (notary fees, 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.

The objective of acquiring at least 15 pharmacies in 2022 will be achieved. Pharmasimple will continue its pharmacy takeover program in 2023 at a more sustained pace in order to allow it to have a large majority of revenues from this distribution channel. This will facilitate the growth of the gross margin (as already observed in H1 2022) and will ultimately allow a return to profitable operations.

contacts:

Company

Michael Willems

[email protected]

Communication

[email protected]

Full and original press release in PDF format:

https://www.actusnews.com/news/76682-pharmasimple-cp-rs-2022-11.10.22.pdf