Half Year 2024 DocMorris AG Earnings Call Transcript
Key Points
- CardLink's launch has significantly accelerated eRx growth, with new customers increasing fourfold compared to last year.
- TeleClinic achieved breakeven in Q4 last year and continues to show strong sales and positive EBITDA contributions.
- DocMorris AG (ZRSEF) achieved breakeven with its non-eRx business, showing a year-over-year improvement of CHF14 million.
- The company has a solid balance sheet with a cash position of CHF195 million, bolstered by the sale of non-operational property.
- The digital health ecosystem, including TeleClinic, is well-positioned for future growth, supported by favorable lawmaking in Germany.
- The transition from paper prescriptions (pRx) to electronic prescriptions (eRx) led to a significant reduction in contribution due to cohort dynamics.
- The company experienced a 10.6% decline in Rx revenue in Q1 due to the drop in paper prescriptions.
- DocMorris AG (ZRSEF) has increased its marketing expenses significantly, impacting short-term EBITDA.
- The company expects an adjusted EBITDA of around minus CHF50 million for 2024 due to deliberate investments in new eRx customer acquisition.
- Material and logistics cost inflation, as well as Rx medication shortages, are ongoing headwinds impacting the business.
Welcome, everybody, to our H1 2024 conference call. We are pleased to inform you about our half-year 2024 results and give insights in the development of our Rx business. Today with me is Marcel, our Group CFO.
I start the business update with an introduction of where we stand. The indicative outlook of March consisted of two components, the OTC and the Rx business. We are achieving the plans for the OTC business in terms of growth and breakeven. The assumptions for the Rx business were indicative as nobody could foresee how eRx develops this year.
The first half year was coined by two completely different quarters, a challenging one before CardLink was introduced in the quarter with encouraging growth the months following the launch of CardLink. The speed of the transition from pRx to eRx went faster than anybody could expect. Consequently, a high number of our existing pRx customers were not able to redeem their prescriptions anymore with us until CardLink went live mid of April. Missing the first four months leads to a relevant reduction of
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