Polska Grupa Farmaceutyczna – Ten Years on the Stock Exchange
Today, PGF’s expansion plans span Central and Eastern Europe, Great Britainand Ireland.
Since PGF shares were floated on the stock exchange, the company’s revenues have grown by 1000%, reaching over EUR 1 billion. PGF provides drugs to over 40 million people in Poland, Lithuaniaand Great Britain. The company has secured a leading position in all segments of the Polish pharmaceuticals market, bringing higher and higher profits to its shareholders. In 1998–2006, the company’s net profit CAGR was 52%, while earnings per share CAGR amounted to 57%.
“The share issue is the springboard for success,”says Jacek Szwajcowski, PGF President, “When investors are closely watching every step that the Management Board takes, the pressure for performance is much higher. Management must be efficient and rational when the correctness of each decision is reflected in the share price.”
PGF made its stock exchange debut in 1998 as an unknown drugs wholesaler based in Łódź. The issue proceeds of PLN 75 million were invested in the company’s development and sector consolidation. “The main advantage of our stock being traded on the exchange is the access to new sources of financing. The drawback, however, is the disclosure obligations because information about the company’s plans finds its way to our competitors. On the other hand, the company is more reliable in the eyes of the financing institutions and business partners,” says Mr Szwajcowski.
The key to success in transparency and the right atmosphere around the company. ”If the company is predictable, it is more likely to win the favour of both investors and banks,” says Mr Szwajcowski. Therefore, PGF makes regular profit distributions and was the first company in Polandto have its General Shareholders Meeting transmitted live on the Internet. ”We have disclosure obligations towards our shareholders in 27 countries, including the US, Japanor Kuwait. Thanks to the live Internet transmission, it is possible to see online from anywhere in the world what decisions are adopted by the General Shareholders Meeting,” explains Mr Szwajcowski.
Polska Grupa Farmaceutyczna was incorporated in 1997 but its history dates back to 1990, when the drug wholesaler Medicines was established. The company’s first Management Board members still hold their positions on the Board, and Jacek Szwajcowski is one of the longest-presiding company presidents in Poland. He has acted as the head of PGF for seventeen years now.
