DGAP-News

Celesio AG: Celesio: Operational performance in H1 2014 in line with expectations

DGAP-News: Celesio AG / Key word(s): Half Year Results
Celesio AG: Celesio: Operational performance in H1 2014 in line with
expectations

31.07.2014 / 07:00

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Celesio: Operational performance in H1 2014 in line with expectations

- Revenue growth of 1.8 per cent achieved

- Decrease in adjusted EBIT of 1.7 per cent due to the discount
competition in Germany and the unfavourable performance in Brazil

Stuttgart, 31 July 2014. The course of business of Celesio AG met
expectations in the first half of 2014. At EUR 10,930.8 million, group
revenue was 1.8 per cent higher year-on-year. Adjusted for currency effects
and changes in the consolidated group, revenue actually increased by 3.9
per cent. The market growth in Germany and the strong performance in Norway
and the United Kingdom offset the fall in revenue in France and Belgium.
Nevertheless, adjusted earnings before interest and taxes (EBIT) fell by
1.7 per cent, to EUR 199.1 million. This is due in particular to the
ongoing intense pressure from competition in Germany and the unfavourable
performance in Brazil. As reported, impairments of EUR 80 million have been
taken in Brazil due to an adjustment in the long-term earnings outlook. In
the first half year net financial debt decreased by EUR 310.0 million, to
EUR 1,053.4 million, which is particularly attributable to the conversion
of the 2014 and 2018 convertible bond.

"All in all, despite strong headwinds, Celesio maintained its course well
in the first half of 2014. We expect this trend to continue for the rest of
the year," said Marc Owen, new Chairman of the Management Board of Celesio
AG. "As our relationship with McKesson evolves, it is our prime goal to
ensure that not just Celesio, but also all its partners, customers and
employees benefit as quickly as possible from the added value generated by
joint procurement with McKesson and an extended product range."

Performance in the divisions
Revenue in the Consumer Solutions division, which is responsible for the
pharmacy business, increased by a significant 6.0 per cent, from EUR
1,680.4 million to EUR 1,781.2 million. Adjusted for currency effects,
revenue increased by 5.4 per cent.

Adjusted for non-recurring items, EBIT was up by a substantial 11.9 per
cent, to EUR 106.8 million (unadjusted: -6.4 per cent). When also adjusted
for currency effects, EBIT rose by 11.5 per cent.

In the United Kingdom, Celesio's most important pharmacy market,