Zur Rose Group AG ((CH:DOCM)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call from Zur Rose Group AG painted a picture of a company on a positive trajectory, marked by significant growth in key areas such as the Rx business and TeleClinic. Despite some financial setbacks, including a decline in adjusted EBITDA and the impact of the Zur Rose pharmacy closure, the overall sentiment was optimistic, supported by strategic innovations and a successful capital increase.
Rx Business Revenue Growth
The Rx business emerged as a strong performer, with revenues increasing by 43.5% in the first half of 2025. This substantial growth underscores the company’s strategic focus on expanding its prescription business, which continues to be a key revenue driver.
TeleClinic Revenue Surge
TeleClinic has become a significant contributor to the company’s gross profit, with revenues surging by more than 150% year-on-year. This remarkable growth highlights the increasing demand for telemedicine services and Zur Rose’s successful positioning in this expanding market.
Capital Increase Success
Zur Rose successfully completed a CHF 200 million capital increase, with a 99% take-up rate. This reflects strong shareholder support and confidence in the company’s strategic direction and future growth potential.
Launch of DocMorris Health Companion
The rollout of the DocMorris Health Companion marks a strategic advancement in Zur Rose’s journey to becoming a digital health platform. Leveraging AI innovation, this initiative is set to enhance the company’s service offerings and customer engagement.
Non-Rx Business Growth
The non-Rx business showed steady and profitable growth, with revenues up 4.4% year-on-year. This segment continues to be a stable contributor to the company’s overall performance, despite challenges in the market.
Retail Media Business Expansion
Zur Rose’s retail media business is scaling rapidly, with expectations of contributing mid-single-digit million EBITDA this year. This expansion is part of the company’s broader strategy to diversify revenue streams and enhance profitability.
Gross Margin Improvement
The company reported a 70 basis points improvement in gross margin year-on-year, driven by better pricing strategies and the increased contribution of high-margin service businesses.
Adjusted EBITDA Decline
Adjusted EBITDA was reported at minus CHF 28.8 million, a decline from the previous year, primarily due to an additional CHF 13 million in marketing spend. This reflects the company’s investment in growth and market positioning.
Q2 Revenue Growth Slowdown
Revenue growth in Q2 slowed to 7.1%, compared to 13.4% in Q1. This was attributed to fewer working days and a strategic focus on profitability over sheer growth.
Impact of Zur Rose Pharmacy Closure
The closure of the Zur Rose pharmacy in Germany negatively impacted the non-Rx business, causing a mid-single-digit percentage point impact on growth. This challenge highlights the need for strategic adjustments in the company’s operations.
Forward-Looking Guidance
Zur Rose provided an optimistic guidance for the fiscal year 2025, with expectations of more than 10% revenue growth and an EBITDA range of minus CHF 35 million to minus CHF 55 million. The company emphasized its strategic transformation towards a digital health platform, with TeleClinic expected to contribute significantly to gross profit. The successful capital increase and AI innovations like the DocMorris Health Companion are seen as pivotal to achieving these goals.
In summary, Zur Rose Group AG’s earnings call conveyed a positive outlook, driven by robust growth in the Rx and TeleClinic businesses, strategic innovations, and strong shareholder support. Despite some financial hurdles, the company is on a path of strategic transformation, aiming to redefine healthcare delivery through digital innovation.