Drugstore.com’s 2002 revenues rise 33% over 2001
Drugstore.com Inc. has figured out a prescription for growth. Following a busy fourth quarter marked by efforts to expand its market reach, Drugstore.com’s Q4 net sales reached a record $55 million, a 27% increase over the year-ago period. For the full year 2002, net sales rose 33% over 2001, to $194 million from $145.3 million.
Driving much of its growth in sales were continued steps Drugstore.com has been taking to expand its customer base, including through new marketing alliances. It acquired 248,000 new customers in Q4, expanding its active customer base to 1.2 million. Among its new marketing alliances are relationships with FTD.com, ACLens.com and 1-800-Wheelchair.com. In addition, it recently extended its marketing alliance with Amazon.com and signed an agreement with Comerxia Inc. that allows consumers in 28 countries to purchase non-prescription health, beauty and wellness products through Drugstore.com.
Meanwhile, drugstore.com’s marketing and sales expenses during Q4 declined to 8.2% of sales, down from 21% in the year-earlier period. It said marketing and sales expense per new customer dropped to $18, down from $23 a year ago.
Drugstore.com said gross profits for 2002 reached $38.3 million, or 19.8% of net sales, up from $13.8 million or 16.9% of net sales in 2001. Even more impressive, its 2002 net loss narrowed to $50.3 million from $282.8 million in 2001. For Q4, its net loss narrowed to $5.9 million from $182.9 million a year ago.
The e-retailer said it expects net sales in 2003 to grow 20-30% over 2002. Although it`s also projecting an EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $4 million to $8 million this year (compared to EBITDA losses of $19.2 million in 2001 and $46.4 million in 2000), it says it expects to achieve EBITDA breakeven by this year`s fourth quarter.
Back...
