Q4 2011: International buy and build strategy leads to higher result - Outlook 2011 realised
Financial highlights Q4 2011
Net sales - Up 3% to € 727.3 million due to acquisitions and organic growth at Direct & Institutional.
EBITA from ordinary activities* - Up 16% to € 37.1 million mainly related to growth at Direct & Institutional; all segments reported growth.
Net result - Up 23% to € 22.8 million due to higher EBITA and lower finance costs.
Change in presentation revenues - Change in presentation revenues of two Swedish distribution contracts with effect from 2011 Annual Report; see annexe 2 for more information.
Operational highlights Q4 2011
Direct & Institutional
− Sales growth of 11%, of which 2% organic.
− EBITA margin from ordinary activities of 8.6%.
− Assist in Germany consolidated as from 29 December 2011.
Pharmacies Netherlands
− Sales down 3% due to lower wholesaling sales, reflecting sustained price pressure and competition.
− Increase in EBITA from ordinary activities of € 0.9 million
Pharmacies Poland
− Organic sales growth of 7% offset by depreciation of zloty.
− Sales growth of pharmacies outpaces the market.
− Slight increase in EBITA from ordinary activities.
Marc van Gelder, CEO:
"Our results for the fourth quarter of 2011 were strong. EBITA from ordinary activities rose 16%, partly due to growing international sales of medical devices to patients and healthcare professionals.
Over the full year, from a financial perspective the results were mixed. On the one hand, EBITA from ordinary activities was up 7%. On the other hand, organic sales growth was under pressure, particularly as a result of government measures and price pressure from insurers to keep healthcare affordable into the longer term. In addition, sales of our Dutch and Polish pharmaceutical wholesaling activities decreased.
Our biggest success of 2011 is the further strengthening of the strategic and operational foundations of our business. Several major acquisitions reinforced our Direct & Institutional segment, safeguarding growth going forward. At Pharmacies Netherlands we are well prepared with our integrated pharmaceutical healthcare programme for market liberalisation as of 2012.
Overall, we are continuing to build international, profitable growth for Mediq, supported by our healthy financial position. Our strategic priorities for 2012 are unchanged: growth of Direct & Institutional, further expansion of our leading pharmacy chains and efficiency improvements.”