The devaluation of the British Pound led to negative exchange rate effects of 431.2 million euro. The decline in revenue due to these exchange rate effects and the sale of the Norwegian and Swedish businesses to McKesson was partially offset by revenue growth in the German wholesale operation and the acquisitions completed in the first half of fiscal 2017.
EBIT (earnings before interest and taxes) for continuing operations saw a decrease of 36.0 per cent to 146.3 million euro in the first half of fiscal 2017 from 228.6 million euro in the first half of fiscal 2016. Adjusted for special effects, EBIT decreased to 157.1 million euro compared to 235.5 million euro in the first half of fiscal 2016. In the first six months of the current reporting period, EBIT adjusted was adversely impacted by the sale of the Norwegian and Swedish businesses in the previous fiscal year, the recent UK government reimbursement cuts and the devaluation of the British Pound. Overall negative exchange rate effects related to the British Pound on EBIT adjusted amounted to 12.7 million euro.
Revenue and earnings forecast
As disclosed in the Annual Report for fiscal 2016, Celesio expected fiscal 2017 consolidated revenue and earnings to be impacted by the prior year disposal of the Norwegian and Swedish businesses and a weakening British Pound. As a result, the company guided continued operations revenue slightly below fiscal 2016 and EBIT adjusted considerably below fiscal 2016. On a constant currency basis and excluding disposals, Celesio expected revenue and EBIT adjusted growth slightly above market and considerably above fiscal 2016.
While the company maintains its revenue outlook for fiscal 2017, in the wake of the recent UK government reimbursement cuts to prescription products, the company now expects EBIT adjusted, on a constant currency basis and excluding the prior year disposals, to be slightly below fiscal 2016. For a detailed disclosure of the expectations on the outlook, Celesio refers to the respective section within the Annual Report for fiscal 2016 (page 60-65), which is still valid, except for the expectations on EBIT adjusted on a constant currency basis and excluding disposals mentioned above.
The key figures of the Celesio Group can be found in the Download Press release (PDF 168 KB).
About the Celesio Group
Celesio is a leading international wholesale and retail company and provider of logistics and services to the pharmaceutical and healthcare sector. The proactive and preventive approach ensures that patients receive the products and support that they require for optimum care.
With strong brands and about 36,000 employees, the group is active in 13 European countries (thereof with own operations in ten countries; Celesio manages operations in two countries and participates in one country in a joint venture). Every day, the company serves over 2 million customers – at more than 2,150 pharmacies of its own, at about 300 managed pharmacies and at over 5,500 participants in the brand partnership schemes. With 109 wholesale branches in Europe, Celesio supplies more than 50,000 pharmacies and hospitals every day with up to 130,000 pharmaceutical products.
McKesson Corporation, San Francisco, USA, is the majority shareholder in Celesio AG. McKesson acquired more than 75 per cent of Celesio AG shares in February 2014. McKesson provides solutions that include pharmaceutical and medical-surgical supply management, healthcare information technology, and business and clinical services.