Drugstore.com finished 2003 with a 55% year-over-year reduction in its full-year net loss, to $18.6 million from $41.4 million, as net sales for the year reached $245.7 million, up 27% from $193.9 million in 2002.
Drugstore also posted its highest-ever quarterly net sales in the fourth quarter, with $70.6 million, up 28.4% from $55 million a year earlier. It also showed its first quarterly EBITDA profit in Q4 at $556,000, compared to an EBITDA loss of $2.8 million in the year-ago quarter. EBITDA is a non-GAAP measurement of earnings before interest, taxes, depreciation and amortization of intangible assets, non-cash marketing expense and stock-related compensation.
Drugstore also reported other metrics that point to a stronger position in the retail pharmacy market. It said Q4 order volume rose 20% from the year-ago quarter, while average net sales per order increased 7%, to $76 from $71. Average Q4 net sales for pharmacy orders grew 8% year-over-year to $106, while average net sales for over-the-counter products grew 12% to $58.
It said its gross margin for Q4 reached 22.2%, up from 20.4% a year ago, while gross margin for the year came in at 20.4%, compared to 19.8% in 2002.
Drugstore also said its Q4 fulfillment and order processing expenses declined as a percent of sales to 10.7% from 12.8%.
The retailer said it anticipates net sales for 2004 to grow more than 45% over 2003, reaching a range of $360-$390 million. It expects pharmacy mail order sales to account for about 16% of net sales, and that orders picked up at local pharmacies to account for about 24%.
Back...
