Working towards a secure and innovative healthcare system
2014 was a very special year for the Pelion Healthcare Group, marking 15 years of active presence in the hospital supply segment and 10 years of operating a retail business. At the same time, 2014 was another very difficult period for the Polish pharmaceutical distribution sector, bringing a number of adverse changes with a direct impact on patients, the security of pharmaceutical trade and the efficiency of the healthcare system.
In 2014, the Pelion Healthcare Group generated PLN 7.7bn in revenue, up 5.1% year on year, with SG&A ratio broadly flat on 2013. Net profit was down 44.2%, to PLN 55.9m, EBITDA fell 13.6%, to PLN 151.5m, and gross margin dropped by 1.1%, to PLN 848.8m.
25 years working for industry growth
The history of our company reflects the history of independent Poland. For nearly a quarter of a century, Pelion has beencontributing to the development of the Polish economy and civil society. The last 25 years have allowed us to lay a solid foundation to support the operations of our four business lines and support subsidiaries.
In 2014, Pelion continued its focus on creating an innovative and secure distribution system. To this end, the Group established a tightly-controlled distribution system ensuring full availability of pharmaceuticals in pharmacies.
The system has particular importance for patients in Poland, where the improper assessment of possible consequences of changes to pharmaceutical distribution regulations has led to certain market aberrations, like the reverse distribution chain, resulting in illegal drug exports.
Pelion also focused on implementing a comprehensive offering for patients, customers and business partners.
Changes driven by difficult market conditions
Like the preceding years, 2014 was a difficult period for all participants in the Polish pharmaceutical market, and for the pharmaceutical wholesalers in particular. With the wholesale mark-up on reimbursable drugs reduced to 5%, trading in reimbursable drugs became unprofitable, which negatively affected the financial standing of both distributors and pharmacies.
The retail segment continued to suffer the consequences of regulatory changes introduced in early 2012, which have effectively disabled a free patient-pharmacy interaction.
Pelion’s response to these challenging market conditions was to take decisive action, in particular in the retail segment, which included:
- Preparation and implementation of new operating plans, with a focus on retail sales;
- Acquisition of Polbita Sp. z o.o., the owner of the Natura chemist chain, marking the entry of Pelion’s retail business into a new, non-regulated, cosmetics market;
- Launch of doz direct, an innovative and fully secure manufacturer-to-patient drug distribution system;
- Launch of a new logistics centre in Kaunas to optimise processes in Lithuania;
- Continuing to build Pelion’s value through implementation of the ‘strong business lines’ strategy.
Sights set on further growth
The Group’s plan for the coming months is to achieve further growth across its business lines based on the development strategies of the individual companies. In 2015, the Pelion Healthcare Group aims to consolidate its position on the Polish and Lithuanian markets, create a comprehensive offering for its customers and pursue initiatives that promote innovation, security and reliability.
Pelion will achieve these objectives by:
Pelion will achieve these objectives by:
- Continuing to implement a customer-oriented strategy (best customer service, meeting customers’ needs and expectations, providing top quality services);
- Increasing sales, improving profitability and optimising the cost of supply to pharmacies thanks to 2014 investments;
- Increasing the number of franchise pharmacies in Poland;
- Developing e-commerce;
- Pursuing the development strategy for the Natura chemist chain.
The table below presents Pelion’s 2014 financial highlights, along with year-on-year comparative data:
| 2014 | 2013 | Change (%)* | |
| Revenue (PLNm) | 7,699 | 7,327 | 5.1% |
| EBITDA (PLNm) | 151.5 | 175.3 | -13.6% |
| EBITDA margin (%) | 2.0% | 2.4% | -0.4pp |
| Operating profit (PLNm) | 113.3 | 138.8 | -18.3% |
| Operating margin (%) | 1.5% | 1.9% | -0.4pp |
| Net profit attributable to owners of the parent (PLNm) | 55.9 | 100.2 | -44.2% |
| Net margin (%) | 0.7% | 1.4% | -0.7pp |
| Earnings per share (PLN) | 5.01 | 8.88 | -43.6% |
* Change calculated based on figures in PLN ‘000
For further information, please contact:
Pelion S.A. Press Office
Phone: (+48 42) 200 75 94
Fax: (+48 42) 200 75 35
Email: biuro_prasowe@pelion.eu
Pelion S.A. has operated on the market for twenty-four years, starting out as a local pharmaceutical wholesaler. In 1998, the Company shares were floated on the Warsaw Stock Exchange. Proceeds from the initial public offering fuelled the Company’s dynamic growth and allowed it to embark on consolidation of the pharmaceutical wholesale market. Since its flotation, the Company has secured a top position among domestic distributors of medicinal products. Today, Pelion Healthcare Group is one of the largest groups operating in the healthcare markets in Poland and Lithuania. It provides services across all market segments (wholesale, retail sales and sales to hospitals), targeted at individual patients, pharmacies, hospitals, and manufacturers. As a holding company, Pelion S.A. oversees all areas of the Company’s operations, which are conducted by PGF S.A. and Pharmapoint Sp. z o.o. (wholesale), PGF Urtica Sp. z o.o. (hospital sales), CEPD N.V. (retail sales), and Pharmalink Sp. z o.o. (services for manufacturers).
Pelion S.A. Press Office
Phone: (+48 42) 200 75 94
Fax: (+48 42) 200 75 35
Email: biuro_prasowe@pelion.eu
Pelion S.A. has operated on the market for twenty-four years, starting out as a local pharmaceutical wholesaler. In 1998, the Company shares were floated on the Warsaw Stock Exchange. Proceeds from the initial public offering fuelled the Company’s dynamic growth and allowed it to embark on consolidation of the pharmaceutical wholesale market. Since its flotation, the Company has secured a top position among domestic distributors of medicinal products. Today, Pelion Healthcare Group is one of the largest groups operating in the healthcare markets in Poland and Lithuania. It provides services across all market segments (wholesale, retail sales and sales to hospitals), targeted at individual patients, pharmacies, hospitals, and manufacturers. As a holding company, Pelion S.A. oversees all areas of the Company’s operations, which are conducted by PGF S.A. and Pharmapoint Sp. z o.o. (wholesale), PGF Urtica Sp. z o.o. (hospital sales), CEPD N.V. (retail sales), and Pharmalink Sp. z o.o. (services for manufacturers).
