Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Zur Rose delays profitability break-even to 2024

Published 23/03/2023, 08:26
© Reuters. FILE PHOTO: The logo of Swiss-based mail-order pharmacy and medical supplier Zur Rose Group is seen at the company's headquarters in Frauenfeld, Switzerland May 9, 2017.  REUTERS/Arnd Wiegmann
DOCM
-

By Anastasiia Kozlova and Tristan Chabba

(Reuters) - Swiss online drug retailer Zur Rose on Thursday said it will not reach break-even in adjusted core profit this year as it navigates regulatory requirements for rolling out online prescriptions in Germany.

It had said last year it expected its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) to reach a "break-even point" in 2023.

It said it now expects a loss in adjusted EBITDA of between 20 million and 40 million Swiss francs ($22-44 million) in 2023.

"All in all, a disappointing outcome," Baader Helvea analysts said, citing the break-even delay.

Zur Rose, which operates in Germany and the Netherlands, sold its Swiss business to Migros subsidiary Medbase in February to focus on its German business.

However, delays in Germany's e-prescription roll-out have clouded the growth outlook for online pharmacies such as Zur Rose and Frankfurt-listed peer Shop Apotheke, and exposed their stocks to volatility.

Zur Rose said it expected e-prescriptions to be introduced as the mandatory standard by Jan. 1, 2024, citing the German Federal Ministry of Health.

The company also reported an adjusted core loss for 2022 of 69.7 million francs, beating a company-compiled consensus of 72 million.

It had a target of 70 million to 75 million francs.

The company has decided to change its name to DocMorris AG which it will use for both for the core B2C business and the Group.

© Reuters. FILE PHOTO: The logo of Swiss-based mail-order pharmacy and medical supplier Zur Rose Group is seen at the company's headquarters in Frauenfeld, Switzerland May 9, 2017.  REUTERS/Arnd Wiegmann

The company's shares were down 4.3% at 0824 GMT. In 2022 the stock lost 70% of its value due to delays in the introduction of e-prescriptions in Germany.

($1 = 0.9159 Swiss francs)

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.