Online drug retailer DocMorris meets expectations as cost savings help (updated)

DocMorris AG

21/03/2024 07:17

(Adds outlook in paragraph 3, 4, context in paragraph 5, peer
performance in paragraph 6)
       March 21 (Reuters) - Swiss online drug retailer
DocMorris  DOCM.S  met expectations on Thursday as it released
its full-year results for 2023, helped by structural cost
savings.
    The firm reported a loss in adjusted earnings before
interests, taxes, depreciation and amortization (EBITDA) of 34.9
million Swiss francs ($39.42 million), in line with expectations
for a loss of 34 million Swiss francs according to a
company-compiled consensus. 
    For 2024, DocMorris expects adjusted EBITDA to come in
between breakeven and a loss of 35 million Swiss francs,
compared with analysts' expectations of a loss of 13 million
Swiss francs.
    The company expects its earnings this year to be boosted by
Germany's mandate of compulsory e-prescriptions for publicly
insured residents from Jan. 1, although its statement warned
that the ramp-up of prescription medication in Germany was not
"fully predictable". 
    Online pharmacies such as DocMorris are relying on the
rollout of e-prescriptions in Germany, a key element in their
business model, in order to turn profitable.
    Dutch-based peer Redcare Pharmacy  RDC.DE  earlier this
month forecast higher sales for 2024 after it posted upbeat
adjusted annual core earnings, supported by a growing number of
prescription sales.     
    
    ($1 = 0.8854 Swiss francs)

 (Reporting by Tristan Veyet and Louis van Boxel-Woolf in
Gdansk; Editing by Mrigank Dhaniwala and Janane Venkatraman)
 ((Tristan.Chabba@thomsonreuters.com;
louis.vanboxel-woolf@thomsonreuters.com))