Mail-order pharmacy Zur Rose contained its operating loss in fiscal 2022. In doing so, it met its stated goal. Losses are expected to fall further this year.
Operating loss (adjusted EBITDA) was CHF 69.7 million, Zur Rose announced Thursday. In the previous year, the minus was still 129 million. The net loss reached 171 million in 2022 after losing 226 million in the previous year.
After repeated delays in introducing the digital doctor’s prescription in Germany, Thurgauer Group was forced to abandon its growth path and focus on profitability. In marketing in particular, costs had to be kept in check.
Accordingly, after years of growth, sales fell by almost 10% to CHF 1.8 billion last year, as known since January. In Germany in particular, companies have suffered from austerity measures.
Name changed to DocMorris AG
However, the announced sale of the Swiss company is likely to be more important than any savings efforts. This is due to be completed in the second quarter of this year and, with revenues of CHF 360 million, would make the group largely debt-free.
With a strengthened capital structure, Zur Rose sees itself well prepared for Germany’s electronic prescription and digitization of the healthcare system there. The online pharmacy operates in Germany under the brand “Doc Morris”.
Zur Rose AG now wants to change its name to DocMorris AG. According to the statement, a similar proposal will be presented to shareholders at the annual general meeting on May 4.
Electronic prescription standard from 2024
At the same time, the group now expects e-prescription to become the standard in Germany from January 2024. The announced implementation of e-prescription across Germany should boost sales to hitherto unknown levels.
But for the current year 2023, Zur Rose now assumes a decline in sales in the mid-single-digit percentage range due to a lack of future Swiss business. In addition, the loss in EBITDA (adjusted) must be limited to -20 million to -40 million francs.
The break-even point for EBITDA (adjusted) should follow in 2024. Over the medium term, the group continues to strive for an EBITDA margin of 8 percent. (SDA)
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