DocMorris narrows loss as expected, sees pickup in e-prescription rollout

By Tristan Veyet and Ozan Ergenay

(Reuters) -Swiss online drug retailer DocMorris on Thursday reported a first-half adjusted core loss roughly in line with expectations, a result boosted by the consolidation of its distribution centre in Heerlen, Netherlands.

The adjusted loss before interest, taxes, depreciation and amortisation (EBITDA) of 20.8 million Swiss francs ($23.6 million) narrowed from 54.7 million francs a year earlier, in line with estimates in a poll of analysts provided by the company.

DocMorris, which relies heavily on the German market after it sold its Swiss business to Migros early this year and renamed itself, said it hoped to turn profitable in 2024 as Germany rolls out e-prescription country-wide.

A new e-prescription redemption channel was launched on time in Germany, DocMorris said, adding that in July 2023 alone, more than 340,000 e-prescriptions were filled, 38% more than in the previous month.

The online pharmacy reiterated its outlook for the financial year of 2023, as well as its objective to turn profitable on adjusted EBITDA by 2024, excluding e-prescriptions.

Germany, which represented more than half of the firm's revenue in 2022, constituted 93% of DocMorris' external revenue in the first half of the year, excluding the Swiss business.

DocMorris sold its Swiss business to Migros subsidiary Medbase in order to further focus on Germany by developing its business-to-consumer core business and expanding electronic prescriptions potential.

Peer Redcare Pharmacy earlier this month raised its 2023 outlook based on a strong half-year performance, after the online pharmacy's second-quarter earnings swung to a profit.

DocMorris' stock is seen up 1.61% in Julius Baer premarket trade.

($1 = 0.8801 Swiss francs)

(Reporting by Tristan Veyet and Ozan Ergenay in Gdansk; Editing by Stephen Coates and Tomasz Janowski)