22.01.2020 – Zur Rose Group AG

Zur Rose Group posts 30 per cent growth in 2019

Zur Rose Group AG / Key word(s): Development of Sales
Zur Rose Group posts 30 per cent growth in 2019

22.01.2020 / 06:45


Press release

Zur Rose Group posts 30 per cent growth in 2019

- Growth targets successfully implemented in 2019

- Clear number 1 position in Germany reinforced

- Partnership in Germany with European market leader in digital doctor

- Two joint ventures with Medbase in Switzerland launch operations

- EBITDA targets for 2019 confirmed

The Zur Rose Group successfully implemented its growth targets in the 2019
financial year. Including medpex sales, it achieved revenue growth of 30.1
per cent to CHF 1,570.1 million. In local currency terms this corresponds to
growth of 32.9 per cent to the equivalent of CHF 1.6 billion. Sales
excluding medpex rose by 12.4 per cent (15.3 per cent in local currency
terms) [1]. Overall the Zur Rose Group managed to considerably extend its
leading position as Europe's largest e-commerce pharmacy.

Strong growth in all segments
Revenue in Germany including medpex sales shot up by 45.4 per cent to CHF
976.0 million (up 50.9 per cent in local currency terms). As planned, the
integration of apo-rot saw marketing, services and IT brought together in
Heerlen at the end of 2019 and the Hamburg site was closed. The synergies
from this integration will have a positive impact in 2020. In Switzerland,
despite price cuts of 4 per cent mandated by the regulator (IQVIA,
ex-factory figures), Zur Rose boosted revenue by 5.2 per cent to CHF 554.4
million, considerably outpacing the market. The positive trend in new
customers in the Swiss physicians business (Professional Services) was
sustained. Zur Rose reported healthy growth of 7.6 per cent in this area,
taking market share from 24.5 per cent to 25.0 per cent. The Group also
posted strong revenue growth of 48 per cent to CHF 39.7 million in the Rest
of Europe segment, which covers the marketplace business in Spain and France
and from around 20 countries on a cross-border basis.

Electronic prescriptions and telemedicine in Germany; cooperation with KRY
The launch of electronic prescriptions represents major progress for using
telemedicine to care for patients in Germany. The cooperation agreement
reached between KRY and DocMorris in the fourth quarter of 2019 means
patients can now enjoy fully digital care with no media break, from the
doctor at KRY performing a telemedical diagnosis to DocMorris carrying out a
pharmaceutical review, providing advice and dispensing the medication
prescribed. KRY is a healthcare company with operations across Europe that
offers patients digital doctors' appointments by video. If necessary, the
attending physician can issue an electronic prescription, which can be
dispensed by DocMorris or a local pharmacy, at the patient's choice.

Joint ventures with Medbase have started operations
Since the start of 2020 Zur Rose and Medbase - a subsidiary of Migros - have
been running the shop-in-shop pharmacies and the webshop through two joint
ventures. Zur Rose sees considerable potential for synergies by stepping up
the strategic cooperation. The next shop-in-shop pharmacies planned are in
the Migros supermarket in Crissier in the canton of Vaud and in the Tivoli
shopping centre in Spreitenbach. In the medium term the aim is to operate
the webshop as a marketplace where other partners can also offer their

The Zur Rose Group confirms the profit forecast for 2019 (an EBITDA margin
of 0 to minus 1 per cent). A margin at the lower end of the announced range
is currently expected. The Group also confirms the outlook for 2022, with
Management looking to double the revenue generated in 2018 with a target
EBITDA margin of 5 to 6 per cent.

The Zur Rose Group will release the full annual report 2019 on 19 March

  Revenue, in CHF thousands (preliminary  1.1.-31.12.2-  1.1.-31.12.2-  Chan-
  figures)                                          019            018     ge
  Zur Rose Group including medpex             1,570,058      1,207,108  30.1-
  Zur Rose Group including medpex in                                    32.9-
  local currency                                                            %
  Zur Rose Group                              1,356,891      1,207,108  12.4-
  Zur Rose Group in local currency                                      15.3-
  Germany including medpex                      975,956        671,245  45.4-
  Germany including medpex, in EUR                                      50.9-
  thousands                                                                 %
  Germany                                       762,789        671,245  13.6-
  Germany, in EUR thousands                                             18.0-
  Switzerland                                   554,404        526,954   5.2%
  Rest of Europe                                 39,698       8,909(1)   n.a.
  Business models
  B2C including medpex                        1,106,244        803,918  37.6-
  B2C                                           893,077        803,918  11.1-
  Professional Services                         424,116        394,281   7.6%
  Marketplace                                    39,698       8,909(1)   n.a.
  Revenue, in CHF thousands (preliminary  1.10.-31.12.-  1.10.-31.12.-  Chan-
  figures)                                         2019           2018     ge
  Zur Rose Group including medpex               412,248        317,856  29.7-
  Zur Rose Group including medpex in                                    34.4-
  local currency                                                            %
  Zur Rose Group                                356,546        317,856  12.2-
  Zur Rose Group in local currency                                      16.9-
  Germany including medpex                      255,221        172,839  47.7-
  Germany including medpex, in EUR                                      53.0-
  thousands                                                                 %
  Germany                                       199,518        172,840  15.4-
  Germany, in EUR thousands                                             19.6-
  Switzerland                                   145,000        137,180   5.7%
  Rest of Europe                                 12,027       7,837(1)  53.5-
  Business models
  B2C including medpex                          290,816        207,807  39.9-
  B2C                                           235,114        207,807  13.1-
  Professional Services                         109,405        102,212   7.0%
  Marketplace                                    12,027       7,837(1)  53.5-
1) PromoFarma consolidated per 14 September 2018

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

19 March 2020 2019 Full-Year Results
16 April 2020 First Quarter Trading Update
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. With its business model, it
offers high-quality, safe and cost-effective pharmaceutical care and thus
contributes to reducing healthcare costs. It is also characterized by the
continuous further development of digital services in the field of drug
management and actively promotes its positioning as a comprehensive,
integrated cross-service healthcare platform. The creation of added value
and a pronounced patient orientation make the Group an important strategic
partner for service providers, payers and industry.

The Zur Rose Group is internationally present with strong brands, including
Germany's best-known pharmacy brand DocMorris. The company employs over
1,600 people at various locations and generated a turnover of CHF 1,570
million in the 2019 financial year (including medpex). The shares of Zur
Rose Group AG are listed on the SIX Swiss Exchange (securities number
4261528, ISIN CH0042615283, ticker ROSE). Further information at

[1] As the separation of the mail-order business has not yet been completed,
no medpex revenues were consolidated in 2019.