DocMorris AG (DOCM) Earnings Call Transcript & Summary

Dear ladies and gentlemen, welcome to the conference call of Zur Rose Group AG. At our customer's request, this conference will be recorded. [Operator Instructions] May I now hand you over to Walter Oberhänsli, who will lead you for this conference. Please go ahead.

Thank you very much. Good afternoon, ladies and gentlemen, and a very warm welcome to Zur Rose Group's Half Year 2021 Results Conference Call. Zur Rose is in the middle of the really most exciting time that I personally have experienced in my 20 years -- 8 years since the foundation of that company, and I'm happy to provide the latest update on our path to electronic prescriptions and beyond where we are very much on track. With me today are Marcel and Walter, who will present the financials and especially the latest eRx update firsthand. First half year was really an exceptional period in several concerns and I'd like to highlight a few points in particular. We were first able to accelerate our growth performance once again with Q2 growth of 26.2% on group level and impressive 35% in Germany. Our active customer base grew to 11.7 million, which includes an increase of 3.6 million compared to last year. We always aimed for the biggest possible customer base at the forefront of eRx and therefore, are really excited now about that great number at a starting point. On the eRx front, we were able to launch our new DocMorris app, including the scanner function and delivered the eRx server for Gematik as part of IBM on time for the launch of the test phase, which started already in July. We see the development in making everything ready for the eRx furthermore fully on track. As already explained at our full year results call, we initiated a large TV campaign with the initial focus on branding. And I'm happy to say today that we achieved our targets with an uplift in unaided brand awareness by 8 percentage points. Additionally, and obviously, most importantly, customers state DocMorris as the most relevant brand when being asked about which company comes to their mind when thinking about eRx. 8 brand awards, which we have won, including renowned Red Dot and the New York Festivals awards proved the brand-building capabilities within Zur Rose. In terms of new business, we were able to launch our first ecosystem partnership with Novo Nordisk by implementing DocMorris Adipositas Care at the end of the first quarter. We also made another step regarding integration with the completion of the transition of a road to DocMorris. Last, but very much not least, I'm extremely happy about the addition of Madhu Nutakki as Group CTO. The first 3 weeks now with him on board has already shown that he is very deep in the topics that concern us the most and that he has relevant experience and insight that he will apply to help us reach our mission. I'm fully convinced that he is the right person to help us drive the transition from an e-commerce pharmacy to Europe's leading health care ecosystem and also to improve our products such as the DocMorris app continuously and really very fast. As already explained at our Capital Markets Day in June, I see actually 5 key pillars for the future success that I want to reiterate today. First, and at least in the short term, the biggest and most important topic is obviously the opportunity that the introduction of the electronic prescription in Germany is bringing to us, this is the largest growth driver for the next years, and the main factor was to reach our midterm targets. We just visited Apotea within this week to better understand the dynamics of electronic prescription in that market where the Rx online penetration has jumped to 12% after COVID-19. These learnings coming from Sweden confirm our confidence in our target in Germany once again. All disruption in the past had always been in favor of the customer do things better for them was always the main driver. People are dealing with really too many challenges in their journeys and the efficacy of medication is by far not there it could be. Here comes in our approach with combining medication with digital services what will lead to a better adherence and therefore better outcomes. There is so much place for improvement led us empower people to manage their health in a much more convenient, personalized and effective way. Therefore, our vision is to create the role where everyone can manage their health in 1 click. This means to build best health care ecosystem of Europe, providing personalized and seamless health journeys specifically designed towards the needs of chronically ill people. We are really up to boost our core business as well as create new business models based on tech and data. Tech is more and more in the core of our business as well as we see technology as the key enabler to reach our vision. With Madhu joining our team we work -- we took another big step to get closer to our ambition. All of us at Zur Rose are committed and really excited to execute on that strategy and create value for customers, employees, partners and with that, our shareholders. I now hand over to Marcel, who will explain the financial performance of the first 6 months of 2021.

Thank you, Walter, and good afternoon from my side. I'd like to start with emphasizing again the 3 highlights from a financial perspective. First, the gain of market share in Germany, resulting from the really impressive 35% growth rate in the second quarter, support our strong position in preparation for the launch of electronic prescription. Second, the spending in the marketing campaign are showing promising returns and increase in active customers and increase in brand awareness, especially with Rx focus and support our offerings. And third, the significant reduction of net working capital by roughly 2.5% of sales is leading to a more efficient use of capital. Let's go into more detail starting with the group sales performance in the first half of 2021. We once again accelerated our growth rate to really compelling 20.8% in local currencies with a strong development in all segments. In Switzerland, we achieved a solid and sustainable growth rate of 5.6%. In Germany, we were able to grow external sales by 30% with the important fact of increasing our market share. eRx business continued to develop with low single-digit declines despite discontinued paper prescription marketing and the bonus spend. The OTC and B2C business developed very strong, especially when taking the rather weak market development into consideration. Segment Europe achieved 22.9% growth in local currency. This is somewhat lower growth compared to prior periods is a result of the very strong demand driven by previous year's hard lockdown in Spain. I would now like to highlight the performance of the second quarter. On a group level, we achieved a very strong growth of 26.2%, mainly driven obviously by our performance in Germany, where we achieved the really exceptional 35.6% growth. Switzerland and Spain both show a typical performances caused by previous year COVID impacts. Let's dive into our KPIs. The key development here is the growth of the number of active customers to 11.7 million. Compared to last year, this is an increase of 3.6 million, a combination of 1.1 million by our Apotal acquisition and 2.5 million organic increase. Due to the continued higher growth of the German OTC as well as the marketplace business with typically more commoditized products and slightly smaller baskets compared to Rx or B2C Switzerland, the average overall basket size decreased from EUR 54 to EUR 52. The same applies for the order frequency, which is at 2.2x per year. Our repeat order rate remains at the high level of 74%, which shows the significant loyalty of our customers. The decrease was driven by the large number of new customers. In terms of site visits, we saw a slight decrease to 234 million in the 12-month period ending June '21. We see this as a result of the peak in Q1 2020 due to COVID-19. As we stated in our full year results, this year is, in our view, a critical one in regards to building strongest possible position ahead of the e-script launch. We increased our growth expenses significantly, especially on the marketing side, which resulted in accelerated goal and in an increasing brand awareness. This P&L on this slide shows the adjusted numbers without extraordinary items. The gross margin came in below previous year, again, driven by the pandemic with a very strong increase in 2020 and the slowdown of the market, especially in Q1 as a result of the missing flu season. It is, however, in line with the second half of 2020. Personnel expenses developed in line with revenue growth despite increased expenses for future growth. The main reason for the increase in marketing expenses is our marketing campaign that we launched to increase awareness ahead of the e-script launch, the marketing ratio is currently at 5.9%. Distribution expenses show a slight improvement in relation to sales and other operating income and expenses includes some cost of new business initiatives and developed in line with our expectations. This led to an adjusted EBITDA of minus CHF 42.9 million. I will explain the adjustments and the bridge of 2020 to 2021 earnings in more detail on the following 2 charts. Depreciation increased as a result of a higher base due to acquisitions and also higher spending in tech development. And the net financial results improved compared to previous year due to a positive exchange rate effect. The adjustments on EBITDA level in H1 2021 reduced significantly compared to previous year. Annular related adjustments amounted to CHF 5 million by integration, mainly related to the Apo-rot integration amounted to CHF 1.2 million including other adjustments of CHF 0.7 million, total adjustments declined to CHF 6.8 million compared to CHF 13 million in 2020. This gives you a chance to understand the drivers of the earnings compared to previous year in more detail and build the bridge from H1 2020 adjusted EBITDA of minus CHF 11.5 million to H1 2021 of minus CHF 42.9 million. First, the increased e-script-related expenses by CHF 14.2 million compared to last year in order to achieve the best possible position ahead of the eRx opportunity. The amount is mainly attributable to the marketing campaign. Second, as explained at the Capital Markets Day, our new businesses, Telemedicine Platform as a service and ecosystem collaborations be a high future margin potential, which is why we increased our spending in these initiatives by CHF 6 million. As explained in the P&L previous year exceptional gross margin impact caused by the pandemic and the slow market development caused by the ceasing flu season this year led to a lower gross margin compared to H1 2020. This need an impact of minus CHF 9.2 million on earnings. The remaining CHF 2 million from offline items are additional expenses that occurred as growth expenses overcompensated our operational improvements in these areas. Our balance sheet remains in a good shape ahead of the e-script rollout. Our cash position is at above CHF 250 million from CHF 300 million at year-end, driven by our operational performance and the reduction of net working capital by CHF 34 million. This reduction was driven by a stronger management focus, which led to a decrease of inventory, the decrease of receivables in relation to sales and an increase of payables and accrued expenses. Significant investments of CHF 23 million in our technology resulted in an increase of intangible assets of CHF 12.5 million. Overall, the balance sheet with an equity ratio of 37.2% and CHF 250 million of cash has the financial strength to invest in the e-script opportunity. Agree well on our financial outlook, which is well known. We confirm both our communicated 2021 and also our mid-term progress. Our past profitability also remained unchanged. With this, I will hand over to Walter Hess, who will give you the latest e-script update and look forward to answer your questions in the Q&A session.

Okay. Thank you, Marcel, and welcome to everyone. I'm very pleased to provide you with a brief update on the most exciting short-term initiative within our company, the introduction of eRx in Germany. Summarized, everything is and remains on track for the mandatory launch on January 1, 2022. And we are all really excited and stay very much focused to tackle this unique opportunity in the best way possible. In July 2021, the launch of the test phase of eRx has happened fully in line with the schedule of the German government and Gematik. Right now, Gematik is in the process of expanding the initial test phase to 50 physicians and 120 pharmacies. We as DocMorris and also the remaining brands in Germany are ready for eRx and are looking forward to receiving the first real e-script very soon. In Q4, there will be the rollout of the eRx technology nationwide so that all participants can test and will also be ready for 1st of January when eRx will become mandatory in Germany. The leading providers of physician information systems remain positive that they will be able to roll out their eRx modules to their customers, physicians in time for the mandatory rollout. One example, just recently, the eRx module of the CompuGroup TurboMed system has been certified by the KBV Association of the statutory health insurance physicians and therefore, the system is ready to be rolled out. Something that is still pending is the publishing of the specifications of the third APIs, which was expected for mid of this year. However, we do not expect this ordinance to have a major impact on us. As -- and bear in mind, we as a pharmacy are anyway connected directly to the telematic infrastructure based on our pharmacy license. So yes, of course, the schedule for Gematik and the other stakeholders involved is tight until the end of the year. But we are convinced that the market will deliver. And we are also convinced that the other participants have to deliver and will deliver as well. Let's move now to our own readiness and road map. As explained at the Capital Markets Day, we will size the eRx opportunity with our health care ecosystem approach. To create the world, everyone can manage their health in one click is our vision, and it comes to life now. Last December, we launched the DocMorris+ app renamed recently to DocMorris Express. As part of our DocMorris e-commerce platform with the main scope to test delivery options and gain experience with same-day deliveries by using our market-based functions. And of course, also to lay the foundation for our partner pharmacy network. We remain on a good track to achieve our target of 200 partner pharmacies by end of the year, and we have onboarded about half of them by end of this month. Beginning of July, we have launched the new DocMorris e-commerce app already including the new eRx functions like the convenient eRx Scanner, which enables patients to simply scan the eRx tokens and place an order with us. By end of the year, we aim to include the DocMorris Express service into our DocMorris e-commerce app. Just in time for the mandatory launch of eRx to provide best-in-class user experience for our customers. For the first time then, customers will really be able to redeem an eRx and at the same time, in the same buying process, purchase OTC and put personal products at best prices. And in addition, we have the choice to get the product delivered according to their needs, either within 24 hours, most of them, up to 48 hours via mail order or same day or Click & Collect through one of our pharmacy partners. During the pandemic, the population has become very used to download the net and scan and use QR codes with the smartphones. For example, to download the COVID certificates or to register in a restaurant. As a result, we believe that even more people will choose an online pharmacy to redeem their eRx already in the near future. A new study of Bitcom, published end of July only, confirms that the digital health offerings became much more important for Germans due to Corona and shows that 22% of them would choose an online pharmacy for their eRx. And exactly for them, we will have the right answer in place. By bringing together e-commerce, health services and marketplace, we will be able to offer the most convenient customer experience for chronically ill patients and for acute demand with flexible delivery options and state-of-the-art health services and support. Let me now conclude my short presentation. I once again reiterating how excited, committed and focused the whole team at Zur Rose Group and I personally are for the eRx opportunity, which really is just ahead of us. With that, it is my pleasure to open the Q&A session and to look forward to your questions.

[Operator Instructions] The first question is from Alexander Thiel, Jefferies.

I hope you can hear me. A couple of questions from my side. First question for Marcel, on the improved working capital efficiency. Could you provide more details on what is driving this change? And how should we count for working capital going forward? If I remember correctly, your target is around 6% of sales. The second question would be for Walter Hess, would be on your logistics. How are you progressing with new logistics hub? And how far are you currently with increasing the efficiency at the other 2 hubs? And my last question would be for Walter Oberhänsli, perfectly filled for the lawyer. And just on the acquisition that has been pushed into the market from a noncovered broker, which might imply that you're not complying with the Rx bonus ban, which has been enacted since December last year. Could you clarify once again what has been the difference between shop and your strategy, but the broader market basically understand what's happening in the Rx growth rate there.

Thank you for your question. Maybe I start with the net working capital development. And there our stronger management focus on these topics leading to higher turnover in inventory leading to reducing phase-out in the receivables. And therefore, the main part of this improvement is really sustainable and makes us fit for the eRx opportunity and are now below the communicated targets of the 6% of sales. And this also because in the future and the e-script topic, the net working capital will be a little bit higher because of the receivables funding from the insurance companies. But altogether, I think this improvement was very important and again may substitute for the future growth.

Walter Hess here. I can answer the second question. Yes, our BC2 distribution sent too is well on track. So we will start as planned with the test phase within the next 2 weeks. And also as planned, we will go live with it in the first year of -- first half of next year. With regard to our activities for operational improvement, the focus in the last quarter was very much on the speed through the processes. And there, we have reachieved very relevant improvements, which we also see in fulfilling our service promise. And increasing the orders which are delivered within next day delivery target.

Okay. So the question number 3, which is the question about bonus ban. So I mean, what we can say is that we have a very, very loyal customer base. And secondly, we did -- after the bonus ban topic came into the picture, we decided not to acquire our ex-customers anymore, which has 2 effects, maybe the ones you are asking for. But on the other hand side, we would not like to comment on .

The next question is from .

You were mentioning that from the technology third-party applications were missing and also that if I understood correctly, Zur Rose is not so much a factor. Could you again give some more details about that? Or are you not affected at all or only slightly? And then maybe you can say something on the projected uptake of the eRx business in Germany for next year?

Yes. So the meeting as expectation will specify the API guidelines for third-party apps. Third-party apps is everything which is not Gematik -- a Gematik app. And therefore, we are concerned, we are not concerned as we as a pharmacy and our app is a pharmacy app. And as a pharmacy, we are not -- it is not relevant for us, what the third-party specifications would say. As I said, we are directly connected to the Gematik server, and can redeem the medication data directly to our pharmacy. And the projection -- what we can say is that we can just confirm and we are very much convinced that within the next 3 to 5 years, the market share of online penetration will go up to 10%. And it starts 1st of January on a mandatory basis. And yes, so this is what we already can say.

Do you think it's going to start rather slow? Or do you expect a speedy start?

There, of course, we have several scenarios in our planning. And there are nice paper in relation of our active customer base where we already have 11 million active customers and by statistics about 25% of them do have chronic disease. This would lead to lot faster and take-up, but we did not give a guidance of the first month of development because it's really pleased to all what we strongly believe and are convinced is that this double-digit online penetration will be achieved in the next couple of years.

The next question is from Olivier Calvet, Kepler Cheuvreux.

I would have 5 questions left. First one, what revenues from Apotal and medpex did you consolidate in the reported revenue line. Can you explain what is the mechanism? Could you come back over the sales performance of medpex and Apotal, in particular, this half year versus last year, please, where obviously, we didn't have Apotal in the base? And just quickly remind us of what structure of contracts that are in place is. Second question would be on the warehouse situation. Can you remind us your thinking or what potential timing for the rationalization of your warehouse footprint, notably in the German geography in particular. Third question would be on the marketplace. Can you explain towards how you will drive customers to your own offers versus your partner pharmacies on the marketplace and confirm just acquisitive just to double check the number of pharmacies you plan to have onboarded by the end of the month. Fourth question would be on the active customers in the German market of those 10.3 million you talked about. Could you share the number of customers that are currently active DocMorris customers, please? Finally, just to confirm on Rx, could you just confirm that you've been respecting German law on Rx pricing in H1 and whether the EU commission's letter that you have received in July has changed anything to your strategy.

Yes. Thank you for your questions. Maybe I'll start with performance of medpex and all the single brands and we do not disclose the single brands because we steer the business on a segment level of Germany and allocate marketing spending on the brands which we have the best performance and the best KPIs, and for us it's important to us with the overall performance and dynamics. And there, the KPIs we disclosed show that we have a very good growth rate on external sales and external sales, as you know, with the sales to the customers and corporate sales includes all the services and deliveries to the pharmacies and so that difference of this. Also in terms of active customers, we do not disclose a number of customers of single brands. The second point was about the warehouse ramp-up and as Walter has mentioned, we will finish the additional distribution center end of the year, and then it's a rollout testing and scaling in the first half of next year in order to be ready and have the capacity in the eRx rollout and scaling.

Okay. And sorry, just to confirm on the German warehouses. Can you give us any color on any rationalization that you plan there?

Overall, the capacity is in the focus and that's why we do not integrate further warehouses in the short term because we think in this situation, it's most important to have the flexibility and the capacity to fulfill on the upcoming demand of the prescriptions.

With regard customer journey that you asked on our app. So the customers come in via our DocMorris app or DocMorris website. And they will have the choice either to purchase via mail order or they also will have the choice to choose same day or Click & Collect with our partners and once they choose Click & Collect to our partners and the orders will be transferred to them.

Okay. So just to confirm, so if I want Aspirin, I just -- there's one product and then I choose when -- depending on the method of delivery, which where it goes right to you or to the partner?

You can choose either -- once we choose the product, we can also choose right at the beginning, if you want to go for say Click & Collect. And with regard to a number of pharmacies, so end of this month, we will reach close to 100 pharmacies, including the brand pharmacies. Big concern. So we do give bonuses anymore for a long while actually. And what the letter of EU commission concerns, so actually we see in this letter of confirmation of our strategy as the commission clearly points out that the bonus ban as it marked in the last changes of law is not compatible with European law.

[Operator Instructions] The next question is from Michael Heider, Warburg Research.

Many have been answered, but just to reconfirm. Can you reconfirm the Rx growth you have seen a decline rather you have seen. I think you have given a number which I didn't catch. Then this question was also asked but maybe I'll ask it a little bit differently. What -- can you give us a feeling what the organic growth was in the first half? Then a third question on what is the profitability growth going into the second half? Do you expect marketing expenses on the similar level than you had seen in H1? Or are you planning even to increase your marketing efforts shortly ahead of the introduction of the mandatory eRx? Then also a question on the new app, the DocMorris app. Just for my understanding, I mean, is the chance -- if I have a DocMorris+ app, let's say, will it be automatically transferred to the latest versions with the Rx scan function? Or do I have to actively download the latest versions once you -- I mean, every time it's renewed. And then last question, again, on your partner pharmacies. I mean, you've given us the target, again, you're saying close to 100 at the end of the month. I mean maybe you can just give us the current picture. So how many pharmacies, you really actually do have at the moment that would be very helpful.

Let me start with more questions. You asked about Rx growth in the first half of 2021. And here, it's very sustainable and also comparable to the growth rates we had last year with -- in the minus low single-digit percentages, again, before we had very high partners and we did not enroll new customers with the monitoring this in the last couple of weeks. And so that's in line with our expectations. In terms of organic growth, as you know, we closed the acquisition of Apotal in the second half of last year. So it's an acquisitory top in the growth rates included. But again, for us, it's very important to have the market share as a group. And as a strong starting point for the launch of the electronic prescription and the overall active customer base and are also in this half year, we did a lot of progress. The organic growth rate would be significantly double digit for the first half of this year. And the first question was about the profitability in the second half. We still need the flexibility in our marketing campaign depending on the development of the access for electronic prescription of our German customers and cannot give an exact guidance because we still believe, also in the end of this year and then we will accelerate our marketing campaign. In general, we believe that this will be the case that we accelerate our standing in marketing as I can have .

With regard to the app, if you have today, the DocMorris Express app, yes, you have to download the new DocMorris app. And once we integrate via opt-in that we will ask the customers, we can then transfer based on the opt-in existing data. Regarding partner pharmacies, right at the moment, we are at 95 pharmacies, as I have said, including the branch pharmacies. So we are already quite close to 100.

The next question is from Capital.

I have a question on the balance sheet and then your ability to finance your growth through your breakeven target. A lot of people fear that there will be a cap increase rather sooner than later because you may -- you are generating quite high losses at this point in time and also in H2 and for the sort of next year. What can you tell us about that? What makes you confident that you don't need a cap increase.

Yes. We have it with CHF 250 million cash. We have the financial power of electronic prescription opportunity, which is in our plan, and which leads to our guidance and for this we feel quite comfortable. And this is what we always said. And if there are additional opportunities, we have to look at this, and we have to plan this, but this is, at the moment, not part of our business plan.

But given that now we are in 1st of January and you start growing what will change from this year. Of course, we have the USP. But do you think that your marketing spend per new customer -- the customer acquisition costs, which just go down that dramatically that fast because if you can lose CHF 60 million, CHF 70 million in the second half and then in the first half next year, yes, the balance sheet will be quite stretched.

Yes. But we have our business plan, we have our liquidity needs in this plan and it shows that this existing cash position is enough for the e-script opportunity in Germany.

So the reason why you're confident that your losses will decrease significantly as the fact here is because it's why. I mean you won't tie back on marketing next year, I guess. So what will be changing in 2022?

It's all in line with our guidance and what we said that we target for even 12 to 18 months after 2021. And if we look into our unit economics and the contribution margin of our electronic prescriptions this leads to this business plan.

So the reason will be that new customers to gain through Rx will cost you much less and bring higher profit. That's the reason, right?

Especially the contribution margin of electronic prescriptions as we have shown in the Capital Markets Day is simply higher and leads to additional positive cash flow, which we can spend again in our marketing content.

Okay. Perfect. And in other cost savings, what can you tell us about that? You integrated people last year and now up road as of first of July or end of June, how much savings will that bring annualized?

Yes, it is included in our job where we show what the run rate is when we have executed on the integration plans and also the synergies. And with this, we are able to achieve an EBITDA margin between 2% and 3%. This is, on the 1 hand, synergies out of integration. On the other hand, it's becoming cost reductions through our additional distribution centers and these all come together to this EBITDA margin between 2% and 3%.

The next question is from .

I would like to know if you already know when you have to consolidate the first turnover of sales from the marketplace segment? Is it will be in 2022 or later? And how much do you expect to come from this channel? And maybe you could again explain the pricing model for Rx on the marketplace. Are you getting a fixed fee or margin of the products. And finally, my question would be if you are going to brand or to deliver your partner pharmacies in any way?

On the first question, as I said, for us, the marketplace or the offering of Same Day and Click & Collect is a value-added services for our customers. So therefore, we expect that relatively high share of the orders, be it Rx or OTC, the customers will ask to deliver them at home next day, 48 hours latest. So we expect that the share through marketplace, yes, will not be over 50% at least. Regarding the pricing model is unchanged to last time. So for our partners, if they want to use the marketplace function, there is a license fee, which is unchanged to what it was before. And the third question, can please repeat again?

So if you're going to brand performances in some way?

No, this is not foreseen as of today.

The next question is from Sebastian Vogel, UBS.

The first one would be on the Swiss business. Your B2C business developed quite well in the second quarter. I was wondering how much COVID self tests or any other COVID related measures have played into that one?

Yes, there was some demand on COVID-related products, but we cannot quantify this. I think overall, the growth in the Swiss business is very solid and sustainable and in line with what we always communicated as a target of the development of the Swiss business in the mid-single-digit area and with the 5 -- more than 5%, we are fully in line with this.

Understood. And the next question would be on cash and balance sheet as well. What sort of cash level your business needs to run the underlying operations. And what sort of equity level you feel comfortable with? Or at what level would you expect or would you say your balance sheet would be looking stretched?

We do not disclose any target KPIs or covenants of our balance sheet. Of course, we -- I want to have a healthy balance sheet with the power to be flexible and has the financial power for the future. In terms of cash and the amount we need for the ongoing business is about CHF 50 million, but also here is the chance to do this by bank credit on net working capital, for example. So the -- we have a strong balance sheet and a lot of options in this regard.

Understood. And one last question with regard to your German business entity, including the one the unconsolidated one. And when I'm comparing Q2 with Q1, you sequentially seem to be down. On the other side, the flu season has been not there in the first quarter. At the same time, in the second quarter, your competitors seem to have some logistics trials. Why had there been a sequential decline and not potentially a sequential increase.

I do not really understand your question. In terms of growth rates, we accelerated our growth in the second quarter and gained market share. We are quite happy with the development.

In terms of absolute numbers. So if I calculate correctly, you had like something like CHF 340 million or CHF 337 million in the first half, and you had like CHF 319 million in the second half -- in second quarter -- sorry, first quarter and second quarter. So that's a sequential decline, right?

So that's the normal seasonality we have for the 4 quarters in the year. And important is the relation and the development compared to the previous year quarter.

But I mean, normally, one part of the big seasonality is also the flu season that, as you said, didn't take place in the first quarter.

Yes, that's true. But again, it's the seasonality and a good comparison to previous year shows that we accelerated our growth rate in the second quarter.

And there are no further questions at this point, so I'll hand back to the speakers for closing remarks.

Okay. Thank you very much for your attendance and for many questions. Thank you for your interest, and have a nice afternoon.