DGAP-News: Celesio AG / Key word(s): Quarter Results Celesio AG: Celesio is confident about the 2013 financial year, despite a weaker first quarter 14.05.2013 / 07:00 --------------------------------------------------------------------- Celesio is confident about the 2013 financial year, despite a weaker first quarter * Group EBIT below prior-year level, as expected - burdened by competition and governmental measures * Strategic growth initiatives on schedule * Outlook for the full year 2013 confirmed Stuttgart, 14 May 2013. In the first quarter of 2013, Celesio's earnings were down year-on-year, largely attributable to the continuing intense discount competition in German pharmaceutical wholesale. Group sales fell by five per cent to 5,361.6 million euro. Operating earnings (EBITDA) amounted to 126.6 million euro. This corresponds to a decline of 10.4% compared to adjusted earnings in the prior-year period and a decline of 9.4% compared to the unadjusted figure. EBIT amounted to 95.1 million euro. Compared to the prior-year EBIT adjusted for extraordinary effects this corresponds to a reduction by 12.1%, on an unadjusted basis EBIT dropped by 10.7%. The earnings development was also burdened by the integration of Panpharma in Brazil. Government measures in France, which had still been offset in the previous year, now showed a full effect on earnings. Celesio CEO Markus Pinger: 'As expected, the first quarter of financial year 2013 was weaker than the prior-year period. We anticipate a stronger second quarter. We are making very good progress with our realignment of Celesio and will systematically continue our strategic initiatives. We are on the right path and confirm our outlook for the current financial year.' Celesio's strategic realignment is fully running to schedule. On 30 April 2013, the Irish antitrust authorities gave their full and unconditional approval for Uniphar plc.'s acquisition of pharmaceutical wholesaler Cahill May Roberts Ltd., which had been agreed last year. The transaction is expected to be closed in the second quarter of 2013. With this deal, Celesio's divestment programme has been successfully completed. 'Piloting our new Lloyds Pharmacy Network will be at the core of our activities this year. We are very happy about our customers' highly positive reactions and will increase the number of own pilot pharmacies from currently five to up to 95 in Great Britain, Italy, Ireland, Sweden, Belgium and Norway. We are launching the Lloyds Pharmacy Network across Europe under this brand name and continue to work towards market maturity of our innovative concept,' Markus Pinger states. Performance in the divisions In the Consumer Solutions division, the pharmacy business, operating earnings (EBITDA) fell compared to EBITDA adjusted for extraordinary effects in the prior-year period by 0.9% (unadjusted: +1.8%) to 62.6 million euro. EBIT of 47.8 million euro was down by 1.4 % on the prior-year period (unadjusted: +2.1%). In the British pharmacy market, which is the most important pharmacy market for Celesio, Lloydspharmacy showed a positive operational development in the first quarter of 2013. This was driven by the new Group structure and the Operational Excellence Programme. However, government measures in the UK as well as the weak British pound had a negative effect on Lloydspharmacy's earnings development. The business in Italy showed a positive development. In Sweden, the restructuring process implemented in 2012 brought positive momentum. In the Pharmacy Solutions division, the wholesale business, EBITDA fell by 19.1% to 83.2 million euro in the reporting quarter. EBIT of 69.7 million euro was 20.0% below the prior-year level. The adjusted figures are on par with the unadjusted amounts. The decline was mainly due to the strong discount competition in Germany. In addition, the reduction was also down due to the integration of Brazilian Panpharma. Countermeasures introduced by Panpharma, which had already been initiated at the end of 2012, are likely to take effect from the second half of the year. Oncoprod in Brazil as well as the pharmaceutical wholesaler AAH in Britain showed a strong performance. Earnings forecast 2013 For Celesio, 2013 will be all about realignment, building on the successful stabilisation of earnings in the 2012 fiscal year and forming a basis for profitable growth from 2014 onwards. As a result, management still expects Celesio to generate an adjusted EBIT of between 445 million euro and 475 million euro in the 2013 fiscal year and, accordingly, an adjusted EBITDA of between 580 million euro and 610 million euro. Key figures of the Celesio Group 1st quarter 1st quarter 2012 2013 Continuing operations Revenue EUR m 5,642.8 5,361.6 EBITDA EUR m 139.8 126.6 adjusted 1) EUR m 141.4 126.6 EBIT EUR m 106.6 95.1 adjusted 1) EUR m 108.2 95.1 Profit before tax EUR m 72.4 63.9 adjusted 1) 2) EUR m 79.7 63.9 Retail pharmacies 3) 2,274 2,178 Wholesale branches 3) 141 136 Discontinued operations Net profit/loss EUR m -48.5 -0.3 Continuing and discontinued operations Employees 4) 45,514 38,650 Net profit/loss EUR m -4.5 41.4 Change on a euro basis % Revenue EUR m -5.0 EBITDA EUR m -9.4 adjusted 1) EUR m -10.4 EBIT EUR m -10.7 adjusted 1) EUR m -12.1 Profit before tax EUR m -11.7 adjusted 1) 2) EUR m -19.8 Discontinued operations Net profit/loss EUR m 99.2 Continuing and discontinued operations Net profit/loss EUR m --- 1) Adjusted for non-recurring effects (including tax effect) primarily in connection with the Operational Excellence Program. 2) Adjusted for special effects in the financial result. 3) Closing figures as of 31. December 2012. 4) Closing figures at the end of the reporting period. Press contact Dr Jens Schreiber, Celesio AG, +49 (0)711.5001-380 [email protected] Rainer Berghausen, Celesio AG, +49 (0)711.5001-549 [email protected] About Celesio Group As a leading international trading company and provider of logistics and services in the pharmaceutical and healthcare sector, Celesio takes a proactive and preventive approach to ensuring that patients receive the products and support that they require for optimum care. With 39,000 employees, we operate in 16 countries around the world. Every day, we serve over 2 million customers - at 2,200 pharmacies of our own and 4,100 participants in our brand partnership schemes. With around 140 wholesale branches, we supply approximately 65,000 pharmacies and hospitals every day with up to 130,000 pharmaceutical products. Our services benefit a patient pool of about 15 million per day. End of Corporate News --------------------------------------------------------------------- 14.05.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Celesio AG Neckartalstr. 155 70376 Stuttgart Germany Phone: +49 (0)711 5001-735 Fax: +49 (0)711 5001-740 E-mail: [email protected] Internet: www.celesio.com ISIN: DE000CLS1001 WKN: CLS100 Indices: MDAX Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime Standard), München, Stuttgart; Freiverkehr in Hamburg, Hannover; Terminbörse EUREX End of News DGAP News-Service --------------------------------------------------------------------- 210859 14.05.2013