Celesio records, as anticipated, weaker growth in the third quarter
of this year
Group profit set to rise for the twentieth consecutive time in 2006
Stuttgart/Germany, 13 November 2006. Celesio has grown both
organically and through acquisitions in the first nine months of this
year. Despite legislative intervention in various countries, Celesio
is continuing to increase its revenue and profit. Celesio plans to
raise profit before tax for the twentieth time in a row in 2006
Danish wholesalers strengthen growth
Celesio increased its group revenue by 5.3 percent (5.2 percent in
local currency) to 15,946.7 million euros. The Danish pharmaceutical
wholesaler and logistics service provider K.V. Tjellesen and
pharmaceutical wholesaler Max Jenne, which were included in the
consolidated figures for the first time, contributed towards the
positive trend.
EBITDA (earnings before interest, tax, depreciation and amortisation)
increased by 8.6 percent (8.5 percent in local currency) to 595.5
million euros. The rise in EBITDA was aided most notably by the
increased gross profit in the Pharmacies division and cost-cutting
throughout the group. Celesio's Pharmacies division has accounted for
a greater share of the group's overall profit in the first nine
months of this year than it had done in the previous year.
Profit before tax rose by 9.6 percent (9.5 percent in local currency)
to 442.8 million euros. Correspondingly, return on sales increased by
eleven basis points to 2.78 percent. Profit from operations from the
first-time consolidation of K.V. Tjellesen and Max Jenne, as well as
the inclusion for the first time of the pharmexx share of the profit
boosted group profit after financing costs.
During the first nine months of the year, Celesio increased its net
profit by 13.2 percent (13.2 percent in local currency) to 314.8
million euros. Net profit during the same period in the previous year
was 278.2 million euros. This figure has been adjusted to allow for a
trade tax refund of 38.9 million euros net (52.9 million euros gross)
for the years 1996 and 2001. The adjusted earnings per share rose by
22 cents to 1.84 euros in the first three quarters of 2006.
Cash flow used for investments
Cash flow reached 431.1 million euros, up 19.4 percent (19.4 percent
in local currency) on the corresponding figure for the previous year,
after adjustments to allow for the trade tax refund. In addition to
investments in the operating business, acquisitions were also funded
completely from cash flow.
Celesio maintains growth course despite adverse conditions
The first nine months of 2006 have demonstrated that Celesio is able
to maintain its growth course also under partially difficult
conditions. This will also remain so in the future. The European
pharmaceutical market is and will remain a growth market: Market
studies predict growth of around five percent for 2006 as a whole.
However in this fiscal year government measures particularly in
Germany and France are hampering market growth in Western Europe -
and with it, of course, Celesio's revenue growth.
In 2006, Celesio Wholesale will - just as in the past - grow
organically in line with its market.
The Celesio Pharmacies division will grow slightly ahead of the
comparable market in 2006. With its market-leading range of services
and locations in close proximity to the patients and source of
prescriptions the division is well equipped for future growth. The
acquisition of pharmacies and new openings will also strengthen the
division.
There are still great growth opportunities in the medium term for the
Celesio Solutions division. Pharmaceutical manufacturers are
increasingly outsourcing services which are not part of their core
activities. Movianto, the business unit which offers transport and
logistics solutions for the pharmaceutical industry, benefits from
this. The strategic alliance with pharmexx, the second pillar of
Celesio Solutions, opens up new opportunities in sales and marketing
support.
Government intervention in the first nine months of this year, in
particular in Germany and France, have visibly left their mark on the
market environment. It is at present not possible to predict with
certainty how this intervention and intensified competition,
particularly in Germany, will affect Celesio's profit for 2006. A
further weakening of the growth rates can be expected for the fourth
quarter, particularly because of the difficult wholesale markets in
France and Germany, the reduction in price of generic medicines on 1
October 2006 in the United Kingdom and an underlying effect
(first-time consolidation of 110 acquired pharmacies on 1 December
2005). The Celesio management board is nevertheless convinced that in
2006 Celesio will increase its profit for the twentieth time in
succession, and from today's perspective profit will also grow more
strongly than revenue. The Celesio management board continues to
anticipate that growth in group profit before tax in local currency -
just as in the past - will be in double digits on a multi-annual
average.
+-------------------------------------------------------------------+
| Overview of | 2005 | 2006 | Change | Change |
| key financial | | | in euros | in local |
| figures | | | in | currency |
| 1st - 3rd | | | percent | in percent |
| quarters | | | | |
|---------------+--------------+------------+----------+------------|
| Revenue | 15.1 billion | 15.9 | 5.3 | 5.2 |
| | euros | billion | | |
| | | euros | | |
|---------------+--------------+------------+----------+------------|
| Gross profit | 1.6 billion | 1.8 | 10.3 | 10.2 |
| | euros | billion | | |
| | | euros | | |
|---------------+--------------+------------+----------+------------|
| EBITDA | 548.5 | 595.5 | 8.6 | 8.5 |
| | million | million | | |
| | euros | euros | | |
|---------------+--------------+------------+----------+------------|
| EBIT | 476.3 | 519.2 | 9.0 | 8.9 |
| | million | million | | |
| | euros | euros | | |
|---------------+--------------+------------+----------+------------|
| Profit before | 403.9 | 442.8 | 9.6 | 9.5 |
| tax | million | million | | |
| | euros | euros | | |
|---------------+--------------+------------+----------+------------|
| Net profit | 278.2 | 314.8 | 13.2* | 13.2* |
| | million | million | | |
| | euros* | euros | | |
|---------------+--------------+------------+----------+------------|
| Cash flow | 361.2 | 431.1 | 19.4* | 19.4* |
| | million | million | | |
| | euros* | euros | | |
|---------------+--------------+------------+----------+------------|
| Earnings per | 1.62 euros* | 1.84 euros | 13.9* | 13.9* |
| share*** | | | | |
|---------------+--------------+------------+----------+------------|
| Interest | 6.58 | 6.80 | - | - |
| coverage | | | | |
|---------------+--------------+------------+----------+------------|
| Equity ratio | 30.4 | 32.2 | - | - |
| | percent** | percent | | |
|---------------+--------------+------------+----------+------------|
| Gearing | 0.93** | 0.86 | - | - |
+-------------------------------------------------------------------+
* Adjusted to allow for the trade tax refund: During the second
quarter of 2005, a trade tax refund of 38.9 million euros net ( 52.9
million euros gross) was granted for the years 1996 and 2001.
** 31.12. 2005
***Adjusted to take account of the 1:2 share split
Press contact: Rainer Berghausen
Phone: +49(0)711.5001-549 ; e-mail: rainer.berghausen@celesio.com
About Celesio AG
With a revenue of 20.5 billion euros (2005) and more than 35,000
employees, Celesio is represented in 16 countries. Its three
divisions Celesio Wholesale, Celesio Pharmacies and Celesio Solutions
cover the entire spectrum of pharmaceutical distribution and
pharmaceutical-related services. Every day, 139 branches in the
wholesale sector make more than 100,000 deliveries. Celesio's more
than 2,000 pharmacies serve more than 500,000 customers daily.
Celesio's Solutions division provides logistics and distribution
solutions to pharmaceutical manufacturers and supports them in sales
and marketing.
More information on Celesio is available on the website
www.celesio.com.
--- End of Message ---
WKN: 585800 ; ISIN: DE0005858005; Index: CDAX, MDAX, Prime All Share,
CLASSIC All Share, HDAX, MIDCAP;
Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Prime
Standard in Frankfurter Wertpapierbörse,
Amtlicher Markt in Bayerische Börse München, Amtlicher Markt in Börse
Düsseldorf,
Amtlicher Markt in Börse Stuttgart, Freiverkehr in Hanseatische
Wertpapierbörse zu Hamburg,
Freiverkehr in Niedersächsische Börse zu Hannover, Amtlicher Markt in
Börse Berlin Bremen;
