Czech pharmacy group Pilulka sees sales fall to Kc1.1bn in H1

Prague, Oct 18 (CTK) - Czech pharmacy group Pilulka Lekarny saw its consolidated sales fall by around Kc200m yr/yr to Kc1.1bn in the first half of the year, with partner pharmacies operating under the Pilulka brand earning another Kc500m, according to a document published on the company's website.

The group's EBITDA (earnings before interest, taxes, depreciation and amortisation) was minus Kc34.6m in H1. According to the company, the negative EBITDA is mainly the result of macroeconomic factors combined with the termination of cooperation with Benefit Management, a major provider of employee benefit programmes.

As in previous years, the group's half-year sales were mainly driven by online sales in the Czech Republic, which accounted for more than half of the sales. Together with the Slovak market, the Czech market still accounts for more than 90 percent of the group's sales.

In addition to Czechia and Slovakia, the company also operates in Austria and Hungary.

"In the second half of the year, Pilulka will focus primarily on completing the transformation process," said Petr Kasa, the company's co-owner and CEO.

The group began a transformation earlier this year, which saw it close its Romanian operations and optimise the company's structure, laying off staff in the dozens.

"The redundancies involved the entire Romanian team, some operational staff as well as middle and senior management in Prague and Bratislava," the firm said in the document.

By the end of this year, the group aims to save more than Kc10m, and expects the transformation to have a positive effect on profitability worth tens of millions of Czech crowns in 2024, said CFO Tomas Hospudka.

The company expects total consolidated sales for this year to reach Kc2.2bn, down slightly yr/yr. Last year, Pilulka's sales exceeded Kc2.5bn, according to preliminary unaudited results.

Pilulka runs a chain of brick-and-mortar pharmacies and the largest online pharmacy in Czechia and Slovakia with approximately two million customers. It is majority owned by Czech individuals.

Pilulka's shares have been traded on the Start market of the Prague Stock Exchange (BCPP) since October 2020. In June this year, the company completed a subscription for new shares, raising capital of Kc67.3m.

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