PRESS RELEASE: PharmaSGP publishes H1 Report 2020 and confirms strong performance and positive outlook for the full year

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DGAP-News: PharmaSGP Holding SE / Key word(s): Half Year Results
PharmaSGP publishes H1 Report 2020 and confirms strong performance and
positive outlook for the full year

2020-09-30 / 07:30
The issuer is solely responsible for the content of this announcement.

*PharmaSGP publishes H1 Report 2020 and confirms strong performance and
positive outlook for the full year*

*- Group revenues rise significantly by 7.2% to &€ 33.8 million in H1
2020, adjusted1 EBIT increases disproportionately by 17.7% to &€ 10.6
million*

*- Systematic expansion of the product portfolio and advancing
internationalization as key growth drivers *

*- Consistent implementation of the strategy for H2 2020: numerous product
launches planned in both Germany and foreign markets, including the launch
of the first PharmaSGP drugs in France *

*- Maria-Johanna Schaecher expands Management Board as CBDO – thus even
stronger focus on internationalization and external growth in the future*

*- Forecast 2020: Compared to the first half of 2020 further increase in
revenue growth and the adjusted EBIT margin *

*Gräfelfing, September 30, 2020 – PharmaSGP Holding SE today published its
full report for the first half of 2020. Despite a market environment
strongly influenced by the corona pandemic, the successful course was
continued in the first half of 2020. PharmaSGP increased its revenues driven
by the development in foreign markets and the strong performance of the
product category “Health Brands”. Adjusted1 EBIT increased
disproportionately and resulted in an adjusted EBIT margin of 31.5%.*

The 7.2% increase in Group revenues to &€ 33.8 million (H1 2019: &€
31.6 million) was based on the growth rate in Germany that clearly
outperformed the market, but especially also on the further expansion of
international activities.

Revenues in PharmaSGP’s home market Germany rose by 4.9% to &€ 24.6
million in the first half of 2020; this equates to a 72.7% share of total
revenues (H1 2019: &€ 23.4 million or 74.2%). The successful
international expansion contributed even more to the growth. Revenues in
foreign markets increased by 13.8% to &€ 9.2 million or 27.3% of total
revenues (H1 2019: &€ 8.1 million or 25.8%).

The consistent implementation of the strategy is also reflected in the
significant rise in revenues of the product category “Health Brands”, which
increased by &€ 5.1 million to &€ 28.6 million in the first half of
the year. In the German-speaking countries, the product category that is the
main focus of PharmaSGP’s product strategy increased by 20.3%, in the rest
of Europe by 29.9%. As expected, revenues in the product category “Beauty
Brands” declined by &€ 2.4 million to &€ 5.2 million (H1 2019: &€
7.6 million).

Adjusted[1] earnings before interest and taxes (EBIT) increased
disproportionately to revenues by 17.7% to &€ 10.6 million (H1 2019:
&€ 9.0 million). The adjusted EBIT margin thus increased to 31.5% (H1
2019: 28.7%). Unadjusted EBIT amounted to &€ 9.5 million and corresponds
to an unadjusted EBIT margin of 28.2%.

Natalie Weigand, CEO of PharmaSGP: “We are extremely satisfied with our
strong business performance in the first half of 2020. We have been very
successful in further developing our product portfolio through line
extensions, entering into new indication areas and further expanding the
international markets. With a total of seven product launches, we even
exceeded the planned number of new products in the first half of the year.
In particular, we have significantly strengthened the ‘Health Brands’, which
are the main focus of our product strategy.”

As a pure-play consumer health company with a clear focus on end consumers,
a flexible D2C marketing approach and a very dynamic portfolio development,
PharmaSGP has a clear competitive advantage. According to the strategy
consultancy Sempora Consulting, the strengths of the business model became
particularly evident during the market changes caused by the corona pandemic
in the first half of 2020. In a performance comparison between close to 50
competitors on how they developed during the first half of the year,
PharmaSGP ranked first by far.

In view of its good market positioning, PharmaSGP has many highly attractive
growth opportunities – both organic and inorganic. In order to be able to
exploit these opportunities even more consistently, both nationally and
internationally, PharmaSGP has increased its management capacity by
appointing Maria-Johanna Schaecher (55) Chief Business Development Officer
(CBDO). Since September 16, 2020, Mrs. Schaecher is driving forward the
implementation of the growth strategy together with CEO Natalie Weigand and
CFO Michael Rudolf. Previously, Mrs. Schaecher held many top management
positions in the healthcare, biotech and pharmaceutical industries and among
others has significant operational experience in M&A and international
expansion.

Due to the large number of product launches planned, in particular the
upcoming launches of PharmaSGP’s first drugs in the French market, the
Management Board is quite optimistic for the full year 2020. The Management
Board expects to be able to increase the revenue growth rate as well as the
EBIT margin of the first half of 2020. These expectations are based on the
assumption that there will not be another comprehensive lockdown in the
second half of 2020 in connection with the corona pandemic in PharmaSGP’s
target markets and that product launches proceed as planned.

The complete H1 report 2020 is available for download as of today at
ir.sgp-pharma.com in the “Publications” section.

*KPI OVERVIEW H1 2020 BY ANNUAL COMPARISON*

*Group figures (in &€ million)* *H1 2019* *H1 2020* *CAGR*
Revenues 31.6 33.8 7.2%
Adjusted1 EBIT 9.0 10.6 17.7%
Unadjusted EBIT 9.0 9.5 5.3%
Adjusted1 EBIT margin 28.7% 31.5%
Unadjusted EBIT margin 28.7% 28.2%

*Revenues by regions (in &€
million)* *H1 2019* *H1 2020* *CAGR*
Germany 23.4 24.6 4.9%
Italy 3.4 4.1 21.1%
Other European countries 4.7 5.1 8.5%

*Share of revenues by regions * *H1 2019* *H1 2020*
Germany 74.2% 72.7%
Italy 10.8% 12.1%
Other European countries 15.0% 15.2%

*Revenues by product category (in
&€ million)* *H1 2019* *H1 2020* *CAGR*
Health Brands 23.6 28.6 21.5%
Beauty Brands 7.6 5.2 -31.8%

[1] Adjusted for one-time effects of EUR 1.1 million that include consulting
costs and fees for the Group’s corporate and organizational structuring.

*CONTACT*

cometis AG
Claudius Krause
Phone: 0611-20585528
Email: ir@sgp-pharma.com

*ABOUT PHARMASGP HOLDING SE*

PharmaSGP is a pure-play consumer health company with a broad portfolio of
leading chemical-free non-prescription pharmaceuticals sold over the counter
(“OTC”) and other healthcare products. PharmaSGP’s products are sold
exclusively through pharmacies. Its products are based on natural active
pharmaceutical ingredients with documented efficacy and fewer known side
effects than most chemical-based pharmaceuticals.

The Company’s core brands cover chronic indications, including pain and
other age-related ailments. In Germany, PharmaSGP is the market leader for
systemic chemical-free pain remedies with its brand families RUBAXX(R) for
rheumatic pain and Restaxil(R) for neuralgic pain. Furthermore, PharmaSGP
has introduced leading products against sexual weakness and vertigo
symptoms.

Since introducing the first product from its current product portfolio in
2012, PharmaSGP has successfully exported its business model to other
European countries, including Austria, Italy, France, Belgium and Spain, and
it recently obtained marketing authorizations for three of its best-selling
products in France.

PharmaSGP generated revenues of &€ 62.6 million at an EBIT margin of
35.8% in 2019. In order to further expand its competitive position,
PharmaSGP plans to increase the number of indications covered by PharmaSGP’s
product offering, leverage established brand families to introduce new
chemical-free OTC and other healthcare products, increase PharmaSGP’s
European footprint, and accelerate its growth strategy by capitalizing on
selected M&A opportunities.

2020-09-30 Dissemination of a Corporate News, transmitted by DGAP – a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: PharmaSGP Holding SE
Lochhamer Schlag 21
82166 Gräfelfing
Germany
E-mail: ir@sgp-pharma.com
Internet: https://sgp-pharma.com
ISIN: DE000A2P4LJ5
WKN: A2P4LJ
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich
EQS News ID: 1137758

End of News DGAP News Service

1137758 2020-09-30

(END) Dow Jones Newswires

September 30, 2020 01:30 ET ( 05:30 GMT)

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