Farmexpert, one of the top ten players in pharmaceutical distribution, targets a 12% market share this year, up from 10% in 2008.
The company ended 2008 with an around 195 million-euro turnover, 14% more than in 2007, while this year’s sales plan is of 250 million euros.
"The figures are yet to be audited, but currently, we expect the company’s profit to amount to 3 million euros. Accounting for around 1.5% of the company’s turnover, it is in line with the target revised at the beginning of Q4, amid significant losses caused by the devaluation," said Octavian Iacob, executive manager of Farmexpert DCI. In 2007, the distributor posted 2.7 million euros in net profit.
Farmexpert operates 8 storage facilities and employs over 600 people, with 40 new staff hired last year.
"Farmexpert boosted salaries in line with its plan. The 2009 salary budget is over 1 million-euro higher than the 2008 one," added Iacob.
Farmexpert shareholders are German group ANZAG (60% of the shares) and businessman Eugen Banciu. The deal by which the Germans entered the Romanian market was the first in the industry and was followed only by acquisitions made by Gedeon Richter, which were, however, smaller in value.
Farmexpert’s rivals on the pharmaceuticals distribution market are Mediplus (a part of A&D Pharma), Relad, Farmexim, Fildas, Polisano, Montero, Europharm Distributie, ADM Farm, Dita.
Apart from ANZAG, no other international player has entered the Romanian market, despite several companies testing the waters.
Farmexpert is not the first player on the drug distribution market to have released its 2008 results. Farmexim posted 590 million RON (160.2 million euros) in turnover, up almost 23% against 2007, but finished the year with losses. Montero recorded turnover worth 101 million euros, up by around 5% against 2007, but company representatives did not wish to disclose the profit/losses recorded.
A & D Pharma, which includes Mediplus and Sensiblu, incurred almost 2.3 million euros in losses, against turnover worth 501 million euros.
Distributors say the weak profit margins were generated by the depreciation of the RON, with many being forced to close down storage facilities and lay people off.
The downward profit trend was, in fact, anticipated in previous years, and is specific to large European distributors, which boast tens of millions of euros in turnover, but which work with a 2-3% profit margin.
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