DocMorris accelerates Rx growth – Biotech Investments

Frauenfeld, 15 October 2024

Press release

DocMorris accelerates Rx growth

• Rx revenue growth of 12.2 per cent in the third quarter
• Acceleration to over 25 per cent in the last few weeks
• Strong increase in new Rx customers
• OTC growth of 1.9 per cent
• Pablo Ros Gomez becomes new CTO
• Closure of the logistics site in Halle (DE)

DocMorris’ e-prescription business continues to gain momentum: In the third quarter of 2024, external revenue^[1] of prescription medicines (Rx) in Germany grew by 12.2 per cent in local currency compared to the previous year and by 15.5 per cent compared to the second quarter of 2024. A strong upward trend is visible, with growth of over 25 per cent in recent weeks compared to the previous year. The expected decline in revenue of paper prescriptions is more than compensated by the positive development of e-prescriptions. In the base business, where profitability is the priority, sales of over-the-counter (OTC) medicines rose as planned in the third quarter, increasing by 1.9 per cent in local currency compared to the previous year.

The dynamic development in the Rx business shows that customers greatly appreciate the simple prescription redemption via the DocMorris app and next working day delivery. This is also reflected in the strong growth in the number of new Rx customers. Repeat order rates and average order values continue to develop favourably. Against this backdrop, DocMorris has intensified its customer acquisition activities since mid-September as announced.

TeleClinic, an important pillar in the DocMorris health ecosystem, continued its strong growth in the third quarter and once again doubled its revenue compared to the same period last year.

In the Europe segment, which focuses on Spain, France and Portugal, revenue in the third quarter rose by 7.4 per cent in local currency compared to the previous year.

External revenue for the entire Group grew by 4.9 per cent in local currency and 3.8 per cent in Group currency to CHF 265.7 million in the third quarter compared to the previous year. At the end of September, the number of active customers^[2] increased by 200,000 to 10.2 million compared to the previous quarter.

Pablo Ros Gomez becomes new CTO
After more than three years, CTO Madhu Nutakki has decided to leave the company to return to the USA. He has made a significant contribution to the successful establishment of the DocMorris technology and data platform. The Board of Directors and Executive Board would like to thank him for his valuable contribution and wish him all the best for the future.

Pablo Ros Gomez will take over as CTO and member of the Executive Board from 1 November 2024. He is already responsible for the company-wide Technology, Product and IT Operations/Infrastructure division and has been CTO of the Europe segment for many years and is thus well prepared for his new role.

Step towards increasing efficiency: closure of the Zur Rose Pharma logistics site in Halle, DE
In future, online customers of the Zur Rose pharmacy will be supplied with over-the-counter and prescription medicines on request by the DocMorris pharmacy from the logistics centre in Heerlen. In agreement with the owner of the Zur Rose pharmacy in Halle (Saale), DocMorris will close its Zur Rose Pharma GmbH service location on 31 December 2024. The “Zur Rose” brand will be discontinued.

Outlook
DocMorris confirms the targets for 2024 communicated in August:

• Increase in external revenue by 5 to 10 per cent, including e-prescriptions
• Adjusted EBITDA of around minus CHF 50 million, including e-prescriptions
• Capital expenditure of around CHF 30 million

Investors and analyst contact
Dr. Daniel Grigat, Head of Investor Relations & Sustainability
Email: ir@docmorris.com, phone: +41 52 560 58 10

Media contact
Torben Bonnke, Director Communications
Email: media@docmorris.com, phone: +49 171 864 888 1

Agenda

DocMorris
The Swiss-based DocMorris AG is a leading company in the fields of online pharmacy, marketplace and professional healthcare with strong brands in Germany and other European countries. Deliveries are mainly from the highly automated logistics centre in Heerlen, the Netherlands, with a capacity of over 27 million parcels per year. In Spain and France, the company operates the leading marketplace for health and personal care products in Southern Europe. With its business model, DocMorris offers its patients, customers and partners a broad range of products and services. In doing so, DocMorris is pursuing its vision of creating a digital health ecosystem for everyone to manage their health in one click. The company was renamed from Zur Rose Group AG to DocMorris AG in May 2023 after the Swiss business was sold to Migros/Medbase. Excluding the Swiss business, about 1,600 employees in Germany, the Netherlands, Spain, France and Switzerland generated an external revenue of CHF 1,038 million serving currently 10 million active customers. The shares of DocMorris AG are listed on the SIX Swiss Exchange (securities number 4261528, ISIN CH0042615283, ticker DOCM). For further information, please visit corporate.docmorris.com.

^[1]  External revenue consists of the consolidated revenue of DocMorris plus online revenues of pharmacies supplied by DocMorris, less the consolidated revenue from supplying them.

^[2]  Customers supplied by DocMorris, either directly or through its partners