DocMorris AG

Significant earnings improvement in 2023; e-prescription is standard in Germany

DocMorris AG / Key word(s): Annual Results DocMorris AG: Significant earnings improvement in 2023; e-prescription is standard in Germany 21-March-2024 / 06:58 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Frauenfeld, 21 March 2024

Press release

Ad hoc announcement pursuant to Art. 53 LR

Significant earnings improvement in 2023; e-prescription is standard in Germany

• Revenue and earnings targets for 2023 achieved
• Inflection point reached in terms of revenue and active customer base
• Break-even programme successfully continued and basis for sustainable profitability strengthened
• Fully digital redemption channel for e-prescriptions confirmed by gematik
• Outlook: External revenue growth of over 10 per cent and improvement in adjusted EBITDA to between CHF 0 million and minus CHF 35 million

DocMorris successfully continued its break-even programme in 2023. By increasing the gross margin, productivity and marketing efficiency as well as structural cost savings, adjusted EBITDA improved significantly by CHF 50.6 million to minus CHF 34.9 million (continuing operations, i.e. excluding the Swiss business). This means DocMorris reached its targets for 2023. At the end of the year, the number of active customers rose to 9.1 million^[1]. External revenue[2] amounted to CHF 1,037.5 million, down 7.4 per cent in local currency terms compared to the previous year. This was at the upper end of the expectations set out in October 2023. DocMorris reached the inflection point in the second half of 2023 and strengthened its basis for sustainable, profitable growth.

Positive earnings trend in the segments
In Germany, the focus on profitable customer groups led to a decline in external revenue of 7.2 per cent. In the fourth quarter the inflection point was reached thanks to intensified customer loyalty measures. For 2023 as a whole, DocMorris generated external revenue of CHF 975.4 million in Germany. The break-even programme resulted in an adjusted EBITDA improvement of CHF 41.7 million to minus CHF 31.8 million. In Spain and France, DocMorris focused on creating an even better customer experience to attract more profitable customers. The company generated revenue of CHF 62.1 million in the Europe segment in 2023. As a consequence of the break-even programme, adjusted EBITDA improved by CHF 8.9 million to minus CHF 3.0 million.