In H1 2022, sales revenue increased by 13.7%, EBITDA decreased by 3.2%, while net profit decreased by 13.1% and reached EUR 6.4m.

In 2022, Salus recorded revenue of EUR 247.4m, an increase of 13.7% YoY. Growth in sales revenue was primarily driven by an increase in income on the domestic market, which grew by 13.6% and amounted to EUR 229m (88% of total sales revenue). Further, Salus noted an increase in every other sales segment in both domestic and foreign markets regarding goods and services revenue. As whole-seller and retailer of Pharma and medical products complemented with retail chain of 30 specialty stores in Slovenia, Gross Margin is important indicator how business is doing. In 2H Gross Margin was down 154 b.p. as increase in COGS (+15.7% YoY) could not be offset by higher sales(+13.7%). . Value of goods sold, increased to EUR 220.5 m (15.7% YoY) – resulting in relatively flat gross profit for Salus. The company noted a gross profit of EUR 26.9m vs. EUR 27m in H1 2021.

Moving further under the gross profit line to the operating expenses, in H1 2021, the Company generated EUR 19.7m, an increase of 12.7% YoY. The increase in OPEX was primarily driven by the cost of sales, including depreciation, which noted an increase amounting to EUR 1.4m or 11% YoY.

Looking over to the EBITDA it amounted to EUR 10.2m, a slight decline of 3.2% YoY. This can be attributed to the increase in both OPEX and purchase value of goods sold, which overall grew more than revenues have.

Under the EBITDA level, Salus reported higher financing expenses, resulting in a worse net financial result of EUR 64.9k (vs. EUR 341.1k in H1 2021). Other financing expenses of the company and the Group in the period January – June 2022 are higher than in the same period in 2021 due to the effect of the revaluation of financial investments valued at fair value through the income statement and higher negative exchange differences. Compared to the YE financial obligations were down 13% and they amounted to EUR 6.8m.

Finally, the net profit of the Company amounted to EUR 6.4m, noting a decrease of 13.1% YoY, mostly due to lower EBITDA achieved during the first half of the year.

Salus H1 2022 key financials (EUR m)