Razvan Nidelea, sales manager with Dona pharmacy chain, says strong expansion on the domestic market will boost the company's turnover by 40%.
"This year, we plan to reach turnover of above 26.5 million euros, (up 40% year-on-year i.e.), given contributions by the outlets due to be opened, as well as by the ones we've opened since the beginning of the year," stated Razvan Nidelea.
Last year, Dona pharmacies posted turnover worth 18.7 million euros, while the profit derived during the same period stood at 0.44 million euros.
"We expect this year's income to be 45% higher than last year, amounting to approximately 0.65 million euros amid rising turnover and following the application of some income maximization policies," Nidelea explained.
In the first three months of this year, Dona pharmacy network registered turnover worth 5.1 million euros, up 20% from the similar period of last year. "The increase was triggered by the consolidation of the "Farmaciile Dona" brand on the pharmaceutical market, the opening of outlets in important cities and the rising number of outlets," Nidelea also said.
Last year, the company operated a network of 35 pharmacies in Bucharest and in the main cities, which placed it among the top five pharmacy chains. This year, Dona plans to open another 15 stores, in the wake of investments worth around 1.5 million euros.
"In 2005, our investment budget stood at 1 million euros, and we've earmarked 1.5 million euros for this year, to be invested in the opening of new outlets and in the company's infrastructure," specified Razvan Nidelea. He added the company's expansion plans included the acquisition of some domestic players.
"We are interested in buying some domestic pharmacy chains because we want to be better represented in the big cities of the country," said Nidelea.
On the other hand, the company does not plan to develop through franchises, unlike Catena for instance, the third largest chain on the domestic market in terms of sales.
Dona is not considering expanding the business outside Romanian borders, either, "at least not this year". Such a decision was announced early this year by Sensiblu, the biggest player on the pharmacy market, with turnover close to 64 million euros last year.
A feature of pharmaceutical retail is the fact that most networks are owned by distributors. Dona pharmacy chain, for instance, is owned by businessman Marcel Banciu, who until recently was the majority shareholder in Farmexpert distributor. He sold 60% of the company to Germany's ANZAG group, retaining a participation of 40%. Razvan Nidelea says the company has received several takeover bids, but offered no further details in this regard. The first pharmacy in the Dona network was set up in 1992. At the end of last year, the company had 356 employees.
Dona pharmacy chain
Turnover will surge by 40% this year in the wake of strong expansion domestically
Last year posted turnover worth 18.7m euros amid income standing at 0.44m euros
Last year operated 35 pharmacies in Bucharest and other major cities
Plans to open another 15 outlets this year, in the wake of 1.5m euros investments
Plans to expand through acquisitions of some domestic players
Does not plan to expand through franchises.
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