McKesson Europe AG
Celesio AG: Revenue and earnings in the first nine months 2014 up on prior year
Celesio AG / Key word(s): 9-month figures Celesio: Revenue and earnings in the first nine months 2014 up on prior year Ongoing discount competition in Germany and challenging market environment in France and Brazil anticipated Stuttgart, 28 October 2014. Celesio generated group revenue of 16,460.0 million euro in the first nine months of 2014, which is up 2.9 per cent year-on-year. When adjusted for currency effects and changes in the consolidated group, revenue actually increased by 3.7 per cent. Market growth in Germany and Brazil and the good revenue performance in the United Kingdom and Norway outweighed the decline in France and Belgium. Adjusted earnings before interest and taxes (EBIT) rose by 2.1 per cent from 312.0 million euro to 318.7 million euro. This is mainly due to the very good performance in the United Kingdom and Norway which more than compensated for the challenging circumstances caused by the discount competition in Germany, the weak market in France and an unfavourable trend in Brazil. In the first nine months of 2014 Net Financial Debt decreased by 281.3 million euro to 1,082.1 million euro, which can be attributed in particular to the conversion of the 2014 and 2018 convertible bonds. “The operational performance in the first nine months of 2014 is in line with our expectations,” confirms Marc Owen, Chairman of the Management Board. “Future development will hinge on how quickly the international platform can be set up after the registration of the domination and profit and loss transfer agreement. Therefore an integration team is tasked with identifying areas of potential, preparing solutions and then effecting a gradual integration into the organisational structure of McKesson. A leadership team has been set up to define the strategic and operating priorities. I feel very confident that this team will strengthen the position of Celesio as a leading international wholesale and retail company in the pharmaceutical and healthcare sector in the short term.” Performance in the divisions Revenue in the Consumer Solutions division – the pharmacy business – increased by 7.6 per cent from 2,514.8 million euro to 2,706.0 million euro. After adjustments for currency effects, revenue rose by 5.7 per cent. After adjustments for non-recurring effects, EBIT increased significantly by 15.9 per cent from the prior year’s figure of 144.5 million euro to 167.4 million euro in 2014. Revenue in the Pharmacy Solutions division – the wholesale business – increased by 2.1 per cent to 13,754.5 million euro. After adjustments for currency effects, revenue increased by 2.8 per cent. After adjustments for non-recurring effects, EBIT fell significantly by 10.4 per cent. Earnings forecast Optimising the company’s cost structures and level of efficiency is fundamental. The expansion of the European Pharmacy Network will also have a positive impact, enabling even stronger growth from 2015 onwards. However, these revenues will still be reduced in part by IT project costs in 2014. The unfavourable situation in Germany, France and Brazil is affecting earnings more than previously expected. The group has also faced higher allowances for debts in Portugal. Overall, adjusted EBIT in the 2014 fiscal year is expected to be slightly lower than in the prior year.
1) Adjusted for non-recurring effects from defined non-recurring expenses and income (including tax effect). 2) Closing figures as at 31 December 2013. 3) Closing figures at the end of the reporting period. 4) Based on EBITDA of the last twelve months.
Press Contact Investor Relations Creditor Relations About the Celesio Group 28.10.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
Language: | English | |
Company: | Celesio AG | |
Neckartalstr. 155 | ||
70376 Stuttgart | ||
Germany | ||
Phone: | +49 (0)711 5001-735 | |
Fax: | +49 (0)711 5001-740 | |
E-mail: | investor@celesio.com | |
Internet: | www.celesio.com | |
ISIN: | DE000CLS1001 | |
WKN: | CLS100 | |
Indices: | MDAX | |
Listed: | Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime Standard), München, Stuttgart; Freiverkehr in Hamburg, Hannover; Terminbörse EUREX | |
End of News | DGAP News-Service |
293599 28.10.2014 |