Online drug retailer DocMorris says another core loss possible in 2024

(Reuters) -Swiss online drug retailer DocMorris AG could make a core loss of up to 35 million Swiss francs ($39.6 million) in 2024, it said on Thursday, warning growth in its prescription business in Germany was "not yet fully predictable". Germany - DocMorris' key market, accounting for almost 95% of its net revenue in 2023 - has mandated the use of electronic prescriptions for publicly insured residents since Jan. 1, which DocMorris expects to help business.

However, the company is awaiting regulatory approval for its fully digital prescription redemption service. That is expected "shortly" and DocMorris applied for certification this week, it said in a statement.

The group, which for last year reported a loss in adjusted earnings before interest, tax, depreciation and amortization of 34.9 million Swiss francs ($39.42 million), predicted its result this year would range between breakeven and a similar loss. "Today's guidance is best seen as indicative, since the new redemption method will have a big impact on the electronic prescription business", said analyst Yannik Siering at Stifel. "Visibility on the new prescription solution will likely go down well, since there had been some uncertainty here in the past few weeks", he added.

Last year's result was in line with expectations for a loss of 34 million Swiss francs, according to a company-compiled consensus.

DocMorris' stock was seen down 1.5% in Julius Baer premarket trade.

($1 = 0.8854 Swiss francs)

(Reporting by Tristan Veyet and Louis van Boxel-Woolf in Gdansk; Editing by Mrigank Dhaniwala, Janane Venkatraman and Jan Harvey)

By Louis van Boxel-Woolf and Tristan Veyet