Retail in brief | Phoenix, API, Shop Apotheke Europe

Retail in brief | Phoenix, API, Shop Apotheke Europe

24 September 2021 - Deborah Wilkes

Phoenix has released financial results, Australian Pharmaceutical Industries (API) is supporting an improved takeover offer from Wesfarmers, and Shop Apotheke Europe has completed the move to its new logistics hub.

Phoenix reports first-half results

Phoenix reported revenue up by 6.0% to EUR14.8 billion (USD17.4 billion) in the six months ended 31 July 2021. After adjusting for currency translations, the rise was 5.5% compared to the same period a year earlier.

The German retailer and wholesaler said its total operating performance – comprising revenue plus handling for service charge – had risen by 6.6% to EUR18.9 billion. Adjusted for currency translations, the rise was 5.8%.

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) declined by 4.6% to EUR309 million.

Adjusted for one-off effects, EBITDA was up by 9.3% to EUR342 million.

During the six-month period, Phoenix announced it was acquiring McKesson Europe’s businesses in Belgium, France, Ireland, Italy, Portugal and Slovenia.

The transaction also includes McKesson’s European headquarters in Germany, its German woundcare business, its shared services centre in Lithuania, its German company Recucare, and its 45% ownership stake in Brocacef, the company’s joint venture in the Netherlands.

Commenting on the deal, Sven Seidel, chief executive officer of Phoenix, said it gave his company an entry into Belgium, Ireland, Portugal and Slovenia (click here to read the News story).

Currently, the retail business of Phoenix operates more than 2,800 of its own pharmacies in 14 countries. Around 1,500 of these operate under the BENU brand.

Countries where Phoenix operates pharmacies include the Czech Republic, Hungary, Latvia, Lithuania, Montenegro, the Netherlands, Norway, Romania, Serbia, Slovakia, Switzerland and the UK.

The pharmaceutical wholesale business has 161 distribution centres in 27 European countries.

API supports improved Wesfarmers offer

Australian Pharmaceutical Industries (API) is supporting an improved takeover offer of AUD764 million (USD558 million) from Australian conglomerate Wesfarmers.

The previous offer of AUD687 million was rejected by API, which commented that it “undervalues API, is not compelling and is not in the best interests of API shareholders” (click here to read the News story).

API’s board said it intended to recommend the revised proposal to shareholders and was allowing Wesfarmers to undertake due diligence.

Wesfarmers announced on 12 July 2021 that it had submitted a takeover proposal to API which owns the Priceline Pharmacy chain as well as the Soul Pattinson Chemist and Pharmacist Advice brands (click here to read the News story).

Rob Scott, managing director of Wesfarmers, said the acquisition of API would provide an “attractive opportunity to enter the growing health, wellbeing and beauty sector”.

“If the proposal is successful,” added Scott, “API would form the basis of a new healthcare division of Wesfarmers and a base from which to invest and develop capabilities in the health and wellbeing sector.”

Shop Apotheke Europe completes move

Shop Apotheke Europe has completed the move to its new “state-of-the-art” logistics centre and corporate headquarters.

The Netherlands-based retailer said its capacity had more than doubled while a higher degree of automation meant processes could run more efficiently. It can now process and ship more than 100,000 parcels a day to customers in seven countries.

“Our new logistics centre ensures that we will be able to meet our ambitious growth targets and keep up with the anticipated increasing demand of the coming years, especially in light of the introduction of electronic prescriptions which will become mandatory in Germany in 2022,” commented Stefan Feltens, chief executive officer of Shop Apotheke Europe.

In the second quarter of 2021, Shop Apotheke Europe reported sales of EUR250 million (USD296 million), representing a rise of 7.3% compared to the same period a year earlier (click here to read the News story).

Shop Apotheke Europe says it is “one of Europe’s leading and fastest-growing online pharmacies”. It operates in Austria, Belgium, France, Germany, Italy, the Netherlands and Switzerland.

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