Euroapotheca results: annual group revenues reach EUR 1.6 billion

Last year, annual revenue of Euroapotheca group grew by 55% to EUR 1.6 billion. This growth, compared to 2022, was driven by the inclusion of the revenue of the pharmacy network Kronans Apotek in Sweden, jointly managed by Euroapotheca and Oriola Corporation, in the consolidated results for 2023. The joint venture between the Apoteksgruppen and Kronans Apotek pharmacy chains in Sweden was completed at the end of 2022. The Baltic States recorded moderate revenue growth, with operating income growing by 4% in Lithuania, 3% in Latvia and 7% in Estonia.

The Group’s net profit in 2023 amounted to EUR 25.8 million, a decrease of 2% compared to the previous year. This change was influenced by significantly increased operating expenses in Lithuania driven by amendments to the Pharmacy Law, as well as temporary integration costs in Sweden.

 Joint venture integration in Sweden

“The integration of joint venture in Sweden was one of the Group’s main priorities last year. During this period, a series of significant integration milestones were completed: a new organization was implemented, the location network was optimized and rebranding of nearly 200 pharmacies completed, product assortment was harmonized, and investments were made in expanding the successfully growing e-commerce channel,” says Paulius Mencas, Chairperson of the Board of Euroapotheca.

With these changes, Kronans Apotek has become the largest pharmacy chain in Sweden measured by number of pharmacies, with almost 500 locations operating under the unified brand across the country, and had market share of around 24% in 2023.

Shortage of pharmacists in Lithuania

Commenting on the results in Lithuania, Tomas Kibildis, Chairperson of the Board of Eurovaistinė, points out that the main influence on last year’s performance was due to the changes in the legal environment.

“In July 2023, following the implementation of amendments to the Pharmacy Law, which prevent pharmaceutical technicians from selling medications under remote pharmacist supervision, a significant shortage of pharmacists was observed across the entire market. As a result, last year we put significant focus on improving working conditions and retaining existing employees as well as attracting new colleagues,” comments Kibildis.

According to T. Kibildis, currently there is a shortage of approximately 200 pharmacists in Lithuania. In response to the staff shortage, the average salary at Eurovaistinė increased by 23% last year. Nevertheless, due to this situation, four Eurovaistinė pharmacies across Lithuania closed their doors last year, and the operating hours of 70 pharmacies were shortened.

“We are making every effort to ensure the continuity of operations and, at the same time, the availability of medications for our customers. We believe that one of our key strengths is a convenient, modern workplace that utilizes advanced pharmaceutical technologies, enabling our pharmacists to provide the best pharmaceutical services to our customers,” shares T. Kibildis.

According to him, last year, Eurovaistinė allocated almost EUR 1.3 million for the renewal of the pharmacy network and renovated 35 pharmacies.

About Euroapotheca

Euroapotheca is an international Northern European group of companies that operates retail pharmacy chains, wholesale pharmaceutical companies and online pharmacies in Lithuania, Sweden, Latvia and Estonia, which started its operations in 1998. Euroapotheca currently operates 905 pharmacies in four countries (including 121 franchised pharmacies), employing more than 7,000 people. Euroapotheca belongs to the international group of UAB Vilniaus prekyba.