30th March 2021
Olivier Aeschlimann, Senior Financial Analyst
The company, the European market leader in online pharmacy, has published figures which confirm its strong growth potential, but which also underline the difficulties in making its business model profitable. In fact, the turnover increased by + 14.4%, but the group realized a net loss of CHF -135.6 million in the financial year 2020. That said, if we exclude the expenses related to growth initiatives in the the area of electronic prescriptions, European opportunities and the healthcare ecosystem, the group’s EBITDA would have been CHF -0.9 million. For 2021, Zur Rose forecasts sales growth of around + 20%, but indicates that the breakeven point of EBITDA should not be reached before 2023. Management estimates that in the medium term, which means a 3 to 5 years horizon, turnover should reach CHF 4 billion (CHF 1.75 at the end of 2020) and EBITDA CHF 320 million. These projections incorporate the gradual adoption of electronic prescriptions in the European market.