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SHOP APOTHEKE EUROPE continues successful growth course; revenues rise by 32% to EUR 338 million during first half of 2019.

NOT FOR RELEASE OR DISTRIBUTION IN THE USA, CANADA, AUSTRALIA OR JAPAN.

Venlo, the Netherlands, 14 August 2019. SHOP APOTHEKE EUROPE N.V., has continued its successful growth course. The company increased its Group-level revenues by 32% to around EUR 338 million during the first half of 2019 compared to EUR 257 million during the same period last year. The Management Board confirms its guidance, which forecasts a revenue increase of approximately 30% to EUR 700 million for the 2019 fiscal year and break-even EBITDA in 2020.

Overall, SHOP APOTHEKE EUROPE achieved strong organic growth both domestically and internationally. On Group-level the gross margin increased by 45% from EUR 46 million for the first 6 months of 2018 to EUR 67 million in H1 2019. Compared to last year’s reporting period, the consolidated gross margin rose by 1.9 pp year-on-year to 19.9%. Despite strong revenue growth, EBITDA for the DACH segment (Germany, Austria and Switzerland) increased to EUR 3.7 million (previous year: EUR 3.0 million) and by a strong EUR 5.4 million compared to Q1 2019. EBITDA for the International segment covering business activities in the company’s other markets stood at EUR -3.4 million (previous year: EUR -2.4 million); consolidated segment EBITDA at EUR +0.3 million was slightly below last year’s level of EUR +0.6 million.

At group level, adjusted administrative costs before depreciation and amortization were EUR 9.9 million for the first half of the year (2018: EUR 7.6 million), equivalent to 2.9% of revenues (H1 2018: 3.1%). These included one-off costs of EUR 1.4 million largely as the result of a stock option program. Due to the company’s strong growth and related costs for new customer acquisition, selling & distribution costs before depreciation and amortization were up 46% from EUR 46 million for the first half of 2018 to EUR 67 million for the period under review.

Adjusted consolidated EBITDA was EUR -9.6 million compared to EUR -7.0 million for the first six months of 2018. This corresponds to an EBITDA margin of -2.8% compared to -2.7% in the first half of 2018. Including amortizations of EUR 7.3 million (previous year: EUR 6.0 million), the adjusted EBIT for the first half of 2019 was EUR -16.9 million (H1 2018: EUR -13.0 million). Adjusted earnings after taxes were EUR -19.9 million after EUR -14.5 million the previous year.

CEO Stefan Feltens comments on the half-year results: "We are on the right track in terms of sales growth and profitability development. We have significantly improved our key earnings figures in Q2 compared to Q1. We are therefore very confident that we will be able to meet our 2019 guidance".

Number of active customers increases by 50 percent

Compared to last year’s balance sheet date, the number of active customers rose by 50% to 4.2 million (2018: 2.8 million). The number of orders increased by 44% over the same timeframe, reaching 5.9 million (H1 2018: 4.1 million), with 80% of orders during the period under review coming from repeat customers (previous year: 81%). The return rate remained minimal at less than 1%. The share of mobile visits increased to 67% during the first half of 2019 after 56% during the first half of 2018.

Due to the changed product mix following the acquisition of nu3 GmbH in July 2018 and the rise in OTC sales, the size of the average shopping basket decreased in line with expectations to EUR 66.26 for the first half of 2019 after last year’s high EUR 74.18.

Gross margin in DACH segment rises to 19.2 percent

DACH, the biggest segment by revenue, increased its half-year revenues by 27% compared to the same period last year, from EUR 235 million to EUR 298 million as of June 30, 2019. At the same time, gross earnings rose by 40% from EUR 41 million to EUR 57 million. The gross margin improved by 1.8 pp to 19.2% compared to 17.4% for H1 2018. Segment EBITDA was EUR 3.7 million after EUR 3.0 million for H1 last year despite substantially higher marketing spending to further boost organic growth and grew by EUR 5.4 million compared to the first quarter.

SHOP APOTHEKE EUROPE significantly increased its revenues outside of the DACH region, up 83.0% to EUR 40 million (previous year: EUR 22 million). Gross earnings for the International segment grew in line with revenues during the reporting period, rising 84% from EUR 5.5 million to EUR 10 million. At 25.2% the gross margin was slightly at last year’s level of 25.1%.

Management Board confirms guidance for 2019 including break-even for 2020

The Management Board confirmed its guidance for the 2019 fiscal year, which projects revenue growth of ca. 30% (2018: 25%). That is equivalent to an increase in consolidated revenues to around EUR 700 million (2018: EUR 540 million). The (adjusted) EBITDA margin is forecast to be at or slightly above last year’s level. Breakeven is projected for 2020.

Ulrich Wandel to leave SHOP APOTHEKE EUROPE

After ten years as CFO Ulrich Wandel will leave SHOP APOTHEKE EUROPE at 30 September 2019 on his own request to pursue new tasks. CEO Stefan Feltens comments: "Dr. Ulrich Wandel has made an essential contribution to SHOP APOTHEKE EUROPE’s growth story with the successful IPO and the following capital market transactions. I express my special thanks to him on behalf of the entire Management Board. Jan Pyttel, Chairman of the Supervisory Board, adds: "We regret Dr. Ulrich Wandel’s decision very much but accept it and thank him for his extraordinary commitment and successful work." The Supervisory Board has initiated the search for a successor, discussions with suitable candidates are already underway. Until a successor is appointed, CEO Stefan Feltens, who was CFO of Teva Global Operations for many years before joining Shop Apotheke, will temporarily assume the CFO responsibilities.

Dr. Ulrich Wandel adds: "As a successful management board we have positioned SHOP APOTHEKE as Europe's leading online pharmacy. SHOP APOTHEKE EUROPE is in a strong position to increase shareholder value by unlocking the growth potential of this still young market in Europe – this is an entrepreneurial achievement that I am proud of."

SHOP APOTHEKE EUROPE is one of the leading and the fastest-growing online pharmacies in Continental Europe. With the acquisition of Europa Apotheek Venlo in November 2017, SHOP APOTHEKE EUROPE significantly extended its European market leadership.  The product range for the whole family in the areas of OTC, beauty and personal care products as well as prescription drugs is supplemented by high quality natural food and health products, low carb products and sports nutrition following the acquisition of nu3 GmbH in July 2018.

SHOP APOTHEKE EUROPE already operates online pharmacies in Germany, Austria, France, Belgium, Italy, Spain, the Netherlands and Switzerland. SHOP APOTHEKE EUROPE delivers a broad range of more than 100,000 original products to over 4.2 million active customers fast and at attractive prices. In addition, SHOP APOTHEKE EUROPE provides comprehensive pharmaceutical consulting services.

SHOP APOTHEKE EUROPE N.V. has been listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard) since 13 October 2016 and is part of the SDAX index since 24 September 2018.

In addition to being traded on the Frankfurt stock exchange, since June 25, 2019, SHOP APOTHEKE EUROPE’s convertible bonds (ISIN: DE000A19Y072), are also tradeable on the Dutch Euronext stock exchange, which operates the stock exchanges in Paris, Amsterdam, Brussels and Lisbon.

This publication constitutes an advertisement. This announcement does not constitute an offer for sale or a solicitation of an offer to purchase securities of SHOP APOTHEKE EUROPE N.V. in any jurisdiction. It does not constitute a securities prospectus. A public offer of securities of SHOP APOTHEKE EUROPE N.V. is not taking place.

Statements contained herein could constitute so-called "forward-looking statements". Forward-looking statements can be recognized by words such as "might," "will," "should," "plans," "anticipates," "anticipates," "estimates," "believes," "intends," "aims," "aim" or their negative form or corresponding modifications and comparable terms.

Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, levels of utilization, developments and achievements of the Group or industry in which it operates to be materially different than those contained herein or implied. There should be no undue reliance on forward-looking statements. The Group will not update or revise any forward-looking statements contained herein, whether as a result of new information, future events or otherwise.