16.04.2020 – Zur Rose Group AG

Zur Rose Group starts 2020 with strong growth

Zur Rose Group AG / Key word(s): Quarterly / Interim Statement
Zur Rose Group starts 2020 with strong growth

16.04.2020 / 06:45


Press release

Zur Rose Group starts 2020 with strong growth

- Significant revenue growth in all markets

- Draft law driving digitalisation ahead in Germany: e-prescriptions
to be mandatory from 2022

- Ready for accelerated growth, courtesy of CHF 175 million convertible bond

The Zur Rose Group continued along the growth track in the first quarter of
2020, with revenue rising 15.9 per cent in local currency terms. Revenue
amounts to CHF 426.6 million (including medpex sales [1]). In Germany the
Group grew by 15.5 per cent in local currency terms and generated revenue of
CHF 263.6 million. In Switzerland Zur Rose boosted revenue by 14.2 per cent
to CHF 151.2 million despite cuts in the cost of medicines. In the Europe
segment, which currently comprises just Spain and France, the Zur Rose Group
grew by 63.9 per cent in local currency terms. The segment contributed CHF
12.4 million to Group revenue.

Increased demand in the mail-order business
Since the outbreak of the COVID-19 pandemic, customers and patients have
been making increasing use of mail-order distribution: demand within the
Group for medicines and healthcare products has seen significant growth. By
contrast, Zur Rose is currently seeing a fall in demand in the physicians
business in Switzerland: the decree by the Federal Council that only urgent
interventions and treatments may be performed has caused many physicians and
practices to reduce their operations sharply or even announce short-time

Germany: doctors' prescriptions to be electronic only from 2022
The German federal government is forging ahead with digitalisation: on 1
April 2020 it passed a draft Patient Data Protection Act (PDSG) stating
amongst other things that from 1 April 2022 doctors' prescriptions should in
principle be issued in electronic form only. The bill is envisaged to be
approved by the Bundestag before the summer break and could come into effect
after being agreed by the Federal Council in autumn 2020.

Financial flexibility for growth initiatives
At the end of March Zur Rose successfully placed a CHF 175 million
convertible bond. These funds will allow it among other things to accelerate
the market launch of e-prescription solutions in Germany and European
initiatives to broaden the customer base, as well as investing in platforms
and eco-system partnerships. They will also enable a rapid and flexible
reaction to the considerable rise in demand for mail-order distribution
since the start of the COVID-19 crisis.

CEO Walter Oberhänsli said of the challenges arising from the COVID-19
pandemic: "We are very proud of our employees, who are working to their
limits throughout the Group every day to ensure our customers are supplied
with the medicines they need as quickly as possible. Together, bricks and
mortar and e-commerce pharmacies are seeing to it that elderly patients,
often with multiple conditions, are as well protected as possible against
the coronavirus - either by home deliveries or by mail-order."

The Zur Rose Group reaffirms the outlook announced on 19 March 2020. The
effects of the COVID-19 crisis on business cannot yet be quantified at
present and so have not been reflected in the outlook. However, overall the
Group expects considerably more rapid market acceptance of mail-order
distribution for medicines and digital healthcare services as a result of
the global crisis.

  Revenue, in CHF thousands (unaudited)  1.1.-31.3.2-  1.1.-31.3.2-  Chan-
                                                  020           019     ge
  Zur Rose Group including medpex             426,563       382,332  11.6-
  Zur Rose Group including medpex, in                                15.9-
  local currency                                                         %
  Zur Rose Group                              364,993       327,058  11.6-
  Zur Rose Group, in local currency                                  15.6-
  Germany including medpex                    263,573       241,992   8.9%
  Germany including medpex, in local                                 15.5-
  currency                                                               %
  Germany                                     202,004       186,719   8.2%
  Germany, in local currency                                         14.7-
  Switzerland                                 151,247       132,460  14.2-
  Rest of Europe                               12,353         7,993  54.5-
  Europe, in local currency                                          63.9-
  Business models
  B2C including medpex                        296,259       272,327   8.8%
  B2C                                         234,690       217,054   8.1%
  Professional Services                       118,561       102,125  16.1-
  Marketplace                                  12,353         7,993  54.5-
Investors and analyst contact
Marcel Ziwica, Chief Financial Officer
Email: ir@zurrose.com, phone: +41 58 810 11 49

Media contact
Lisa Lüthi, Head of Group Communications
Email: media@zurrose.com, phone: +41 52 724 08 14

23 April 2020 Annual General Meeting
19 August 2020 Half-Year Results
21 October 2020 Q3 Trading Update

Zur Rose Group

The Swiss Zur Rose Group is Europe's largest e-commerce pharmacy and one of
the leading medical wholesalers in Switzerland. It also operates the leading
marketplace in southern Europe for consumer health, beauty and personal care
products commonly sold in pharmacies. The company is internationally present
with strong brands, including Germany's best-known pharmacy brand DocMorris.
Zur Rose employs more than 1,800 people at sites in Switzerland, Germany,
the Netherlands, Spain and France. In 2019 it generated revenue of CHF 1,569
million (including medpex) and has around seven million active customers in
core European markets.

With its business model, the Zur Rose Group offers high-quality, safe and
cost-effective pharmaceutical care. It is also characterized by the
continuous further development of digital services in the field of drug
management using AI-supported applications and new technology. Zur Rose is
furthermore actively driving ahead its positioning as a comprehensive
provider of healthcare services. By creating a digital healthcare platform -
the Zur Rose ecosystem - it networks products and digital services from
qualified providers. The contribution made by Zur Rose will be to take these
offerings to customers and patients and to make a relevant selection. The
aim is to provide people with a seamless accompaniment and empower them to
manage their own health optimally using products and digital solutions.

The shares of Zur Rose Group AG are listed on the SIX Swiss Exchange
(securities number 4261528, ISIN CH0042615283, ticker ROSE). For further
information please see zurrosegroup.com.

[1] As the separation of the mail-order business has not yet been completed,
in the first quarter of 2020 medpex had only a minor impact on the
consolidated revenue of the Zur Rose Group.