Farmexpert expects lower profit margin

Drug distributor Farmexpert, one of the main players in the field, saw a 20% sales increase in the first four months of this year, in line with full-year estimates. The company intends to reach the 200 million-euro mark in terms of turnover in 2008. "We are on schedule with 2008 growth, and have a 8.5% market share, the same share we ended last year with. Although in drug distribution, sales vary quite a lot from one month to another, Farmexpert does not experience such visible fluctuations," said Dan Wanya, marketing manager of Farmexpert. In 2007, the distributor posted net profit worth 26 million RON (7.8 million euros), compared with 36 million RON (10.2 million euros) in 2006, according to data provided by the company. Under the circumstances, Farmexpert is preserving one of the highest net profit margins in the sector- 6.1%. "On the one hand, there was a stronger financial discipline, on the other, there was a better cost management. However, for 2008, we have provided for a decline in margins," explained Wanya.