Unexpected drastic measures of the Department of Health for England burden Celesio's five-year forecast
Despite the burden for the 4th quarter, Celesio confirms the forecast for 2007
Stuttgart, 28 September 2007 --- The Department of Health for England has announced that it will cut reimbursement prices for medicines and fee payments for pharmacies. This will probably lead to an additional impact on Celesio's profit of more than 30 million euros in the 4th quarter of 2007.
Celesio, however, confirms its forecast for 2007. In the 2007 fiscal year, Celesio is expecting EBITDA growth to outperform revenue growth and group profit before tax to increase for the 21st time in succession compared with the prior year.
As a result of the unexpected rigorous government intervention in Great Britain, in addition to the measures introduced in the course of the year 2007 and the anticipated government cost cutting measures in 2008 in markets that are relevant for Celesio, leads to a correction of the company's mid-term forecast. Based on the current circumstances, Celesio is no longer expecting an average of double digit growth for pre-tax profit for the time period 2006 - 2010.
Celesio announced that, just as in the past, every measure will be taken to compensate in as far as possible the effects of government intervention.
However, according to the Chairman of the Management Board and Chief Executive Officer of Celesio Fritz Oesterle, the cost cutting measures of the Department of Health for England are so drastic and serious that major efforts are needed to keep up the current level of success. "Thanks to our outstanding management and the high commitment of staff in Great Britain, I am confident that we will succeed in this".
About Celesio Group: In 2006 Celesio generated 21.6 billion euros revenue. More than 36,000 people work for the company. Celesio operates in 16 countries. The three business divisions Wholesale, Pharmacies and Solutions cover the whole spectrum of pharmaceutical distribution and services. In Wholesale 135 branches bring medicines to pharmacies about 100,000 times every day. About 2,100 pharmacies serve each day more than 500,000 customers. The Solutions division offers pharmaceutical manufacturers logistics and transportation services und supports them with sales and marketing.
Press contact: Rainer Berghausen, Celesio AG, +49 (0)711.5001-549 [email protected]
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Celesio AG Neckartalstrasse 155 Stuttgart Germany
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