In 2022 Euroapotheca focused on expansion in Sweden and operational efficiency
In 2022 Euroapotheca Group focused on expansion in Sweden and operational efficiency. The Group that manages Eurovaistinė in Lithuania and pharmacy chains in Latvia, Estonia and Sweden, exceeded EUR 1 billion in turnover.
“Euroapotheca Group’s revenue grew by 27 percent in 2022. This growth was mostly impacted by transaction in Sweden that was completed in October 2022 and combined pharmacy chains of Apoteksgruppen and Kronans Apotek. As a result, the Group’s consolidated turnover in Sweden increased by 55 percent. Meanwhile, Group’s revenue in Latvia and Estonia grew by 12 percent, while in Lithuania 10 percent growth was recorded. After rapid growth of e-commerce during the pandemic, we observed a slowdown last year with 3 percent sales decrease in Baltic States in comparison to previous year”, – Paulius Mencas, Chairman of the Board and CEO of Euroapotheca, elaborates on the financial results.
Expansion in Sweden
One of the main Euroapotheca’s focus areas in 2022 was strategic development and joint business integration in Sweden. In the beginning of 2022 Euroapotheca Holding SWE, the Group’s subsidiary, and Oriola Corporation (Oriola) entered into a joint venture transaction combining their pharmacy chains in Sweden – Apoteksgruppen, formerly owned by Euroapotheca, and Kronans Apotek of Oriola.
This transaction is reasoned by significant synergies and economies of scale, thanks to the complementary Apoteksgruppen and Kronans Apotek pharmacy chains, as well as the emergence of new opportunities to expand the e-commerce channel.
The transaction was completed in October 2022 by forming a joint venture between Euroapotheca and Oriola, in which each party acquired 50 percent of the shares. As a result of the transaction, the joint venture is the third largest player in the Swedish pharmacy market with market share of around 25 percent.
Orientation to operational efficiency
In 2022 Euroapotheca Group companies focused more on cost management and operational efficiency, adapting to the turbulence in energy markets, rapid inflation, and the general economic situation.
“In the pharmacy network, the year started with adjustment of the assortment due to war in Ukraine. Later, together with partners and suppliers we were looking for solutions to deal with broken supply chains and shortage of medicines. Nevertheless, throughout the year we also paid attention to internal processes’ review and efficiency of the pharmacies’ operations to free up pharmacists’ hands and provide expert pharmaceutical service,” says Tomas Kibildis, Chairman of the Board at Eurovaistinė, about last year’s priorities.
The Group’s total net profit in 2022 grew from EUR 11 million to EUR 26 million, compared to the previous year. Change in net profit was mainly influenced by one-off accounting events in 2021 consolidated financial statements, related to the valuation of investments. Fine imposed by the Competition Council on Lithuanian operational companies, which is secured by bank guarantees, is not reflected in the annual financial statements, and, accordingly, in the net profit figure above.