Mediq Q3: Solid growth Direct & Institutional Lower result pharmacies
Financial highlights
Net sales - Up 2% to € 671.8 million due to acquisitions and organic growth at Direct & Institutional.
EBITA from ordinary activities* - Down 13% to € 27.9 million due to lower results at Pharmacies Netherlands and Pharmacies Poland.
Net earnings per share from ordinary activities* - Down 4% to € 0.33 due to lower EBITA from ordinary activities partly compensated by lower financial costs and a lower number of shares outstanding.
Cash flow - Cash flow from operating activities of € 54.6 million, benefiting from improved working capital position.
Outlook 2011 - EBITA of € 123 million to € 127 million reconfirmed.
Operational highlights
Direct & Institutional
− Sales growth of 13%, of which 5% organic.
− PBG in the Netherlands and Medicus Plesner in Norway consolidated; integration on track.
− EBITA margin of 8.1%.
Pharmacies Netherlands
− Sales down 2% due to lower wholesaling sales caused by price pressure
− EBITA down € 3.4 million due to effect of relatively strong result in the comparative period of last year, sustained price pressure and investments in integrated care programs.
Pharmacies Poland
− Wholesaling sales and result down because of strong price competition in anticipation of upcoming new legislation (as of 2012).
− Pharmacies’ sales growth slightly higher than the market.
Marc van Gelder, CEO:
“Further growth of deliveries to people’s homes and to healthcare professionals like hospitals or GPs is the core of our strategy. We successfully achieved this in the quarter, through both acquisitions and organic growth. At 5%, organic sales growth at Direct & Institutional outstripped that of the preceding quarters. Especially at our homecare deliveries sales and results grew. Recent acquisitions also clearly contributed to results.
The development of operating result from sales of medical devices to healthcare institutions in the Netherlands and Sweden was disappointing. Sales in the Netherlands continue to be pressured by lower prices, particularly in the hospital market. In Sweden we finalised the demerger of Mediq Sverige from Oriola-KD, leading to integration costs.
As market leader we have a relatively strong position in the distribution of pharmaceuticals in the Netherlands. This market is however still subject to substantial price pressure. Looking ahead, we are preparing for the new method of reimbursement of pharmaceuticals and pharmaceutical care as from 2012. Negotiations with healthcare insurers are progressing constructively. Another development, the transfer of biopharmaceuticals for conditions such as rheumatoid arthritis to the hospital budget, is set to lead to further changes in the playing field. As part of our direct service, we currently deliver these products to patients’ homes, together with nursing care if required. We believe it is important for patients to continue to receive this care in their homes instead of having to visit a hospital. We are currently in discussion with hospitals about providing this service on their behalf.
Supported by our leading position in the market, we are confident about the future.”