Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Shop Apotheke Soars on Solid 1H Sales Growth; E-Prescriptions Expected from Sept.

Published 05/07/2022, 10:50 pm
Updated 05/07/2022, 10:50 pm
© Reuters.

By Geoffrey Smith 

Investing.com -- Shop Apotheke (ETR:SAEG) stock rose 10% on Tuesday after the German online pharmacy chain reported better-than-expected sales in the second quarter, allowing it to uphold its guidance for the full year.

Shop Apo said sales growth accelerated in the second quarter to 287 million euros ($296 million), up 15% from a year earlier. First half sales reached 592 million euros, up 11% on the year and the company confirmed that it still expects sales growth of between 15% and 25% for the whole of 2022.

The company is on the verge of an important step in its long-term development, now that Germany's authorities have approved the issuance of drugs through digital prescriptions. Pharmacies in the federal state of Schleswig-Holstein and part of North Rhine-Westphalia will begin to issue e-prescriptions in September, with a further six regions starting in December.

As an e-commerce operation, Shop Apo was one of the big early winners of the pandemic, but it has given up most of its gains in recent months amid concerns about the slow rollout of electronic prescriptions. That has left it dependent on sales of non-restricted goods such as beauty products and health supplements for now.

By 8:30 AM ET (1230 GMT), Shop Apo stock was up 9.6% in Frankfurt.

As such, the company is still to make a profit. Even at a basic operating level, it barely breaks even: it's guiding for an EBITDA margin between plus and minus 1.5% for 2022. However, it continues to add customers in line with expectations: it added another 700,000 in the first half of the year to a total of 8.6 million as of June. The company expects a fresh boost from the start of operations at its distribution center in Milan, Italy, "in the late summer."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.