Last year saw the main domestic drug distributors' profit margins fall dramatically, while two top ten players registered their first losses.
The main players in the drug distribution sector derived cumulated turnovers worth over 1.3 billion euros last year, while overall profits exceeded 20 million euros, according to data centralised by ZF. Therefore, the average profit margin on the entire market stood at less than 2% last year, compared with over 5% in 2006.
The decline was anticipated a few years ago, and affected large European distributors, which derive turnovers worth tens of millions of euros, and register 2-3% profit margins.
In 2006, amid an appreciation of the RON, drug distributors generated profit margins as high as 10-12%, however, last year companies' net profits witnessed a downturn.
The market leader, Mediplus, registered net profit worth 7.1 million euros, down 68% on 2006, but A&D Pharma group, of which it is a part, ended last year in the red, while the other member in the group, Sensiblu, witnessed losses worth 7.8 million euros. Relad Pharma, the second largest player on the market, ended the year with losses worth 1.5 million euros, and turnover worth 219.1 million euros. Polisano also reported a significant decline in net profit, after turnover reached 162.7 million euros.
Farmexim's net profit amounted to 1.7 million euros, down 30% on 2006, while turnover climbed to 148.6 million euros. The highest profit, although down from the previous year, was generated by Farmexpert - 7.8 million euros, after turnover reached 148.6 million euros.
ADM Farm recorded a 0.4 million-euro net profit, down 80% against 2006, amid higher turnover - 95.5 million euros. Dita Import-Export, a company that entered the portfolio of the Hungarian group Gedeon Richter at the end of 2006, saw losses worth 3.4 million euros, compa
