Q4 2010: Further increase operating result
Financial highlights Q4 2010
Net sales - Up 11% mainly due to acquisitions at Direct & Institutional (10%). Organic sales edged down 1%, reflecting a decrease at Pharmacies Netherlands; 3% organic sales growth at Direct & Institutional. Exchange rate effects were 2%
Operating result - Up 23% to € 29.4 million excluding non-operational items, due to higher results at Direct & Institutional and Pharmacies Netherlands, and up 14% excluding a one-off reorganisation provision of € 1.7 million at Direct & Institutional in Q4 2009 as well.
Net result - Up 28% due to the higher operating result and lower taxation.
Operational highlights Q4 2010
Direct & Institutional
− Sales growth of 32%, partly due to acquisition in the Nordics.
− Sales growth of 32%, partly due to acquisition in the Nordics.
− EBITA from ordinary activities up 30%, with a substantial contribution from international business units.
Pharmacies Netherlands
− Operating result up € 2.7 million excluding non-operational items.
− Sale & leaseback of 32 pharmacy properties leads to book gain of € 2.0 million
− Reorganisation progressing ahead of schedule.
Pharmacies International
− Organic growth of pharmacy activities in line with market growth.
− Goodwill impairment at wholesaling of € 2.2 million
− Operating result from ordinary activities down due to higher costs at national distribution centre.
Financial highlights 2010
− Operating result from ordinary activities rises 12% due to higher results at Direct & Institutional and Pharmacies Netherlands.
− Operating result in line with forecast of € 112 to € 116 million.
− Higher operating margin from ordinary activities reflecting higher margin at Pharmacies Netherlands and higher share of Direct & Institutional in total sales.
− Stable EBITA margin (from ordinary activities) at Direct & Institutional.
− Sales growth of 1% (1% organic).
− Dividend proposal: final dividend of € 0.31 per share, bringing the total to € 0.46 per share (pay-out of 35%), a 5% increase compared to last year.
− Balance sheet strengthened further, while completing substantial acquisitions, by operating
cash flow, sale & leaseback of pharmacies and disposal of non-strategic interest in Anzag.
Marc van Gelder, CEO:
“2010 was a good year for Mediq, in which we took several important strategic steps. We achieved further upscaling at Direct & Institutional through the acquisition in the Nordics and Baltics. The integration and results of these activities are well on track. Organic sales growth and cost control, driven partly by synergies from joint purchasing, also contributed to the increase in this segment’s operating result. And we firmly maintained our strategic direction in the still-unsettled Dutch pharmacy market.
Both developments led to a 12% increase of operating result from ordinary activities. With our healthy financial position, we continue our drive for international, profitable growth for Mediq.”