Pharmacy group Pilulka sees sales fall by 13 pct to Kc2.1bn in 2023

Prague, April 24 (CTK) - Czech pharmacy group Pilulka posted sales of Kc2.1bn last year, down 13 percent year-on-year, according to preliminary figures, and together with franchise Pilulka pharmacies, sales amounted to some Kc3bn, according to information on the company's website.

The reason for the decline is the closure of the Romanian branch in mid-2023 and a significant reduction in sales through employee benefit programs.

The fastest growing market within the group was Austria, where sales exceeded Kc10m per quarter for the first time in the last quarter. However, in April this year, Pilulka withdrew from the Austrian market when it sold its operations to Vamida. The company justified this on the grounds that maintaining Austria as its only expansion market after leaving Romania and Hungary was not economically efficient. The company's activities are now focused on the Czech Republic and Slovakia.

Last year, Pilulka served 710,000 online customers who placed a total of 1.3 million online orders. Brick-and-mortar stores, including franchises, dispensed over one million prescription drugs last year and served 2.4 million patients.

"2023 was a year full of change and challenges. We started as a company operating in five markets focused primarily on growth. In a hectic four months, we changed everything from the ground up. During the transformation, around 100 employees left the company and management also underwent a significant transformation. These changes were extremely challenging but necessary for our further development," said Pilulka CEO Martin Kasa.

In May, the company will announce its financial results for the last fiscal year, along with a detailed analysis of the group's current transformation, including changes in foreign expansion. At the same time, the results for the first quarter of this year and the outlook for 2024 will be presented.

"In 2024, we want to build on the transformation steps taken in 2023 and achieve positive EBITDA and positive cash flow as a group," added CFO Tomas Hospudka.

Pilulka is the largest online pharmacy in the Czech Republic and Slovakia. Last June, Pilulka completed a subscription for new shares on the Start market of the Prague Stock Exchange (BCPP), raising capital totalling Kc67.4m. Over the past two months, the company's share price has fallen from Kc240 to Kc180.

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