DocMorris achieves significant revenue growth in the fourth quarter of 2023 and confirms inflection point by increasing active customer base – Biotech Investments

Frauenfeld, 16 January 2024

Press release

DocMorris achieves significant revenue growth in the fourth quarter of 2023 and confirms inflection point by increasing active customer base

• Revenue outlook achieved at the upper end in 2023
• 14.3 per cent revenue growth in the fourth quarter of 2023 and increase in the active customer base to 9.1 million
• Inflection point confirmed and basis for sustainable, profitable growth strengthened
• E-prescription mandatory and successfully introduced throughout Germany
• Outlook confirmed

DocMorris has clearly achieved its revenue target for the full year 2023. External revenue^[1] amounted to CHF 1,038.0 million and, at minus 7.4 per cent in local currency compared to the previous year, were at the upper end of the outlook specified in October. In the fourth quarter of 2023, the company achieved a significant increase in revenue of 14.3 per cent in local currency compared to the same period of the previous year, which was characterised by the break-even measures. Compared to the third quarter, sales increased by 11.5 per cent. This performance confirms the inflection point towards sustainable, profitable growth.

In the main market of Germany, external revenue in the fourth quarter rose by 14.7 per cent in local currency compared to the previous year. This strong growth was driven by over-the-counter (OTC) medicines, in particular the core brand DocMorris, and a recovery in prescription medicines (Rx). OTC revenue grew by 18.4 per cent in local currency in the fourth quarter, while Rx revenue declined only slightly by 2.2 per cent in local currency. The Rx business stabilised compared to the previous quarters due to increased customer loyalty measures. Sales in the Southern European marketplace business were below expectations due to an increasingly competitive market environment. At the end of 2023, the number of active customers^[2] increased by 300,000 to 9.1 million compared to the previous quarter.

E-prescriptions mandatory and successfully introduced throughout Germany
Since 1 January 2024, medical practices in Germany have been obliged to issue electronic prescriptions to patients with statutory health insurance for most medicinal products categories. The use of e-prescriptions therefore already increased significantly in the fourth quarter of 2023. To date, more than 76,000^[3] medical facilities – corresponding to 77 per cent of all medical facilities – have already issued more than 32 million³ electronic prescriptions. In the last seven days, over 60 per cent of all prescriptions have been issued electronically. A further sharp increase is expected over the course of 2024.

In mid-December 2023, the gematik shareholders’ meeting decided to implement the eHealth CardLink product in the telematics infrastructure in the first quarter of 2024. This enables mobile use of the electronic health card (eGK) via smartphone without a PIN using NFC-technology (Near Field Communication). This means that a fourth redemption channel and a fully digital redemption option for e-prescriptions for online pharmacies has been launched. DocMorris expects to be able to launch this service within its app, which has been ready since December 2023, in the first quarter of 2024 in line with gematik specifications. Patients will then be able to redeem their e-prescriptions easily and securely via the DocMorris app using their eGK without a PIN.

Outlook
For 2023, the management confirms the targets specified in October:

• Improvement of EBITDA (adjusted) to between minus CHF 30 million to minus CHF 40 million.
• Capital expenditure of between CHF 30 million to CHF 40 million.

For 2024, DocMorris continues to expect to break-even on adjusted EBITDA, excluding e-prescriptions. In the mid-term, an adjusted EBITDA margin of 8 per cent continues to be targeted.

The revenue and operating result of the Swiss business were no longer be consolidated from the sale to the Migros subsidiary Medbase.

Investors and analyst contact
Dr. Daniel Grigat, Head of Investor Relations & Sustainability
Email: ir@docmorris.com, phone: +41 58 810 11 49

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 2,200 employees in Germany, the Netherlands, Spain, France and Switzerland generated an external revenue of CHF 1,038 million serving over 9 million active customers in 2023. 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 sales comprise the consolidated sales of DocMorris plus the mail-order sales of pharmacies supplied by DocMorris, less the consolidated sales for their supply.

^[2] Customers that DocMorris supplies either directly or via its partners.

^[3] Source: gematik

^[4] Adjusted for the payment of performance obligations fulfilled in previous years

^[5] Adjusted for the payment of performance obligations fulfilled in previous years