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SHOP APOTHEKE EUROPE: 42% growth and significantly improved bottom line in Q2; adjusted Q2 EBITDA margin 2.7%.

SHOP APOTHEKE EUROPE N.V. is successfully continuing on its growth course while achieving a positive adjusted EBITDA ahead of schedule and progressing with its development into a customer-centric e-pharmacy platform. The company increased its Group-level revenues by 37% to EUR 464.7 million during the first half of 2020 compared to EUR 338.3 million in H1 2019. All growth was organic. The number of active customers rose organically by 31% to 5.5 million now, with approximately 500k of those won during Q2 2020.

SHOP APOTHEKE EUROPE CEO Stefan Feltens comments: "We have had a remarkably successful first six months. In addition to strong financial results, we gained significant market share while substantially advancing our strategy of evolving SHOP APOTHEKE EUROPE into a customer-centric e-pharmacy platform. We are therefore looking forward to the remainder of the year with a high degree of confidence that is reflected in our increased financial targets for 2020."

With a growth rate of 55%, gross profit at Group level increased significantly faster than sales, from EUR 67.4 million during the first six months of 2019 to EUR 104.5 million this year. Compared to last year, the consolidated gross margin rose by 2.6 pp to 22.5% for the first half of the year. In Q2, the consolidated gross margin was at 23.5% compared to 21.2% the previous year, largely driven by net pricing improvements and better sourcing conditions.

Selling and distribution (S&D) expenses as percentage of sales in H1 improved by 2.3 pp year-over-year to 17.5%. In Q2, the consolidated S&D ratio was at 18.1% compared to last year's 18.7% better 0.6 pp.

Administrative costs amounted to EUR 13.9 million in H1 (previous year: EUR 11.4 million) and included one-off and employee stock option expenses of EUR 1.9 million (previous year: EUR 1.5 million). Adjusted administrative costs as percentage of sales was 2.6% (in Q2 2.7%), an improvement of 0.3 pp versus last year's 2.9% (in Q2 an improvement of 0.2 pp).

In combination, the improved gross profit margin and cost ratios led to a substantial improvement of SHOP APOTHEKE EUROPE's adjusted EBITDA: At a positive EUR 11.3 million this H1, adjusted EBITDA rose by EUR 20.9 million from EUR -9.6 million in H1 2019. In Q2, adjusted EBITDA was up EUR 6.9 million to EUR 6.3 million versus last year's EUR -0.5 million. This translates into an adjusted EBITDA margin of +2.4% in H1 2020 after -2.8% a year ago, and +2.7% in Q2 vs. -0.3% last year.

After depreciation expenses of EUR 6.8 million (previous year: EUR 7.3 million), adjusted EBIT was EUR 4.5 million (H1 2019: EUR -16.9 million). Operating cash flow was EUR 5.8 million in the first half of this year vs. EUR 4.3 million for H1 2019. In Q2 this year, inventories were increased, particularly in regard to Corona-related products. Adjusted earnings after taxes were EUR -3.1 million compared to EUR -19.9 million a year earlier.

Organic growth further boosted in both segments, International revenues up 82%.

During the first six months of 2020, DACH - SHOP APOTHEKE EUROPE's largest segment by revenues, covering business activities in Germany, Austria and Switzerland - grew by 31.3% compared to a year earlier. Revenues rose to EUR 391.1 million after EUR 298.0 million for the first six months of 2019. Over the same time period, gross earnings were up 48.9% year-on-year from EUR 57.2 million to EUR 85.2 million. The gross margin rose by 2.6 pp to 21.8% compared to 19.2% last year. The adjusted EBITDA for the first six months of 2020 was EUR 16.6 million compared to EUR -2.8 million for H1 2019.

SHOP APOTHEKE EUROPE's International segment (Belgium, France, Italy, and the Netherlands) also significantly increased its H1 revenues, up 82.4% to EUR 73.6 million (previous year: EUR 40.3 million). Segment gross earnings rose by 90.0% from EUR 10.1 million to EUR 19.3 million during the reporting period with the gross margin at 26.2%, 1.0 pp above last year's 25.2%. Adjusted EBITDA for the first six months of 2020 improved to EUR -5.3 million from EUR -6.9 million a year earlier.

Jasper Eenhorst, CFO of SHOP APOTHEKE EUROPE, says: "We have been able to rapidly respond to the increased demand as well as any challenges by quickly ramping up our operational capacity and optimizing our marketing mix. At the same time, we steadily achieved further structural efficiency improvements. Following our successful capital increase of EUR 65 million in April, we can respond to changing market needs from an even stronger position."

The company's focus on the introduction of e-scripts is a cornerstone of SHOP APOTHEKE EUROPE's strategy to develop a customer-centric e-pharmacy platform. "Our preparations for the launch of e-prescriptions in Germany are fully on track. We are happy with the latest legislation that emphasizes open access for all market participants" CEO Stefan Feltens says. "We are expanding our same-day delivery service to further metro areas and will also launch our marketplace in the second half of 2020."

The construction of the new logistics centre and headquarters in Sevenum near Venlo is well on track, too. Head offices already moved in July. SHOP APOTHEKE EUROPE will be fully prepared to meet the growing demand expected over the coming years.

Based on the developments in the first and second quarters and against the background of an overall slightly improved visibility for the remaining part of the year, SHOP APOTHEKE EUROPE has raised its guidance for 2020. For the full year, the company now expects year-on-year sales growth of at least 30% (previously: at least 20%) and a positive adjusted EBITDA margin in the range of 1-2% (previously: a positive adjusted EBITDA).

The full half-year report including the consolidated financial statements can be here:

https://shop-apotheke-europe.com/en/investorrelations/publikationen/

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, the Netherlands and Switzerland. SHOP APOTHEKE EUROPE delivers a broad range of more than 100,000 original products to over 5 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, 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.