PHARMASIMPLE

Disposal of the pharmasimple.com and parapharmazen.com internet platforms

Significant reduction in structural costs

Houdeng-Goegnies (Belgium), December 6, 2022, 8:30 a.m. – Pharmasimple (ISIN Code: BE0974302342. Ticker: ALPHS), announces the continuation of its transformation plan with the sale of its two e-commerce platforms pharmasimple.com and parapharmazen.com.

In accordance with what was announced on several occasions during the 2022 financial year, Pharmasimple has taken the decision to withdraw from the online distribution market for parapharmacy products. Suffering from a model of very high fixed costs and excessive pressure on sales prices, the operation of e-commerce sites no longer offers the level of profitability in line with the Group’s expectations.

In this context, Pharmasimple has signed, with effect from 1er December 2022, an agreement to sell its two main e-commerce platforms in the form of a licence. Under the terms of the contract, the purchaser will pay a monthly fee for the operation of the two sites for 24 months. At the same time, it has undertaken to buy back the available stock with a seller’s loan repayable over 48 months and to take over a significant part of the staff dedicated to this activity.

This divestment, combined with a restructuring plan necessary for its sustainability, allows Pharmasimple to reduce its workforce from 65 to 13, excluding physical points of sale, and has led the company to take out a lease for new premises more suited to its new size. .

The Group is also in discussion to seal the fate of its subsidiary Enova Santé, operating the 1001pharmacies.com site.

All these initiatives should enable Pharmasimple to significantly reduce the weight of its fixed costs. Benefiting fully, from 2023, from the sales of pharmacies acquired this year and by nature more profitable, the Group should return to a much better oriented operation in the coming quarters.

Michael Willems, CEO of Pharmasimple says: “Our transformation plan is moving forward in line with the original roadmap. The exit from online activities marks a decisive step in the emergence of a new group, whose development will go hand in hand with sustainable and profitable growth. The bulk of the restructuring work is now behind us and we will be able to focus our efforts in 2023 on business growth, both organically and through the acquisition of new pharmacies.”

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About Pharmasimple: Pharmasimple is a distribution group specializing in the sale of pharmaceutical and parapharmaceutical products. With a network of fifteen pharmacies in Belgium, the company aims to become one of the leaders in its sector in this country through an ambitious program of external growth. In 2021, Pharmasimple achieved sales of €30.0 million. Pharmasimple shares are listed on the Euronext Growth market. ISIN code: BE0974302342. Mnemonic: ALPHS.

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PHARMASIMPLE


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