Dorin Catana, general manager of Centrofarm retail pharmacies, says that the lower-than-expected traffic in malls, where he has around 30 stores, allowed him to renegotiate rents for most locations, and yet pharmacies do not get the cuts other retailers enjoy because of the "idea that they fare well".
He says the company's results were 10% below initial estimates, though the overall increase in RON stood at 38%, to 143.6m RON (34.2m euros).
"(...) We did not reach the budgeted turnover as part of newly opened pharmacies did not have the expected results," Catana says.
Centrofarm reviewed its budget 33 times last year in line with legislative changes and the exchange rate trend, while sales followed the usual seasonality, except September, when they were weaker than in August.
Centrofarm head chose not to provide any information about the 2010 budget or investments in new pharmacies and only said "there would not be many newly opened pharmacies".
"Next year we'll focus on boosting the profitability of existing pharmacies. We hope to become profitable," Catana says.
Centrofarm's 2009 strategy included the opening of 6 pharmacies, the closing of 3 and the relocation of one shop. Overall, the network operates 60 retail pharmacies and the first 10 generate a quarter of turnover.
Centrofarm has in the past two years introduced its own drug brands on the OTC drug segment, produced by Sintofarm. "Sales are not significant and I do not believe we'll make any further investments in own labels," Catana says.
In terms of value, the best-selling products in Centrofarm network are Preductal, Detralex and Tertensif, generating 1% of turnover. In terms of quantity, the products boasting the biggest sales are Paracetamol Sinus, Algocalmin and Nurofen raceala si gripa (Nurofen for colds and flu), accounting for the same percentage
