Torfarm’s sales hit PLN 5.7bn in 2009

2010-03-03

Sales at Torfarm, the Polish largest pharmaceutical wholesaler, surged by 60% y-o-y in the fourth quarter of 2009 and exceeded PLN 1.6bn (€406m), helped by the integration of Prosper. Net profit amounted to PLN 4.9m (€1.2m), compared with a loss of PLN 4.4m (€1.1m) a year earlier. Cumulative figures for the four quarters of 2009 show group sales up by 43.3% to PLN 5.69bn (€1.3bn), and an almost eight-fold increase in net profit to PLN 40.3m (€10.2m). The company thus exceeded its own sales target unveiled in August 2009, which was PLN 5.55bn (€1.41bn) but did not achieve the net profit target, which was PLN 44m (€11m). Gross sales margin remained unchanged at about 7.3%.
In its report, Torfarm noted that in 2009 it managed to strengthen its position as the number one drug wholesaler in Poland with more than 31% of the market, and saw first positive effects of its expansion into new product and service markets, despite the high associated costs. Thus, Synoptis Pharma, its pharmaceutical arm, generated PLN 5m (€1.3m) in revenues last year from sales of its first three dietary supplements, and expects sales to double in 2010 thanks to the launch of four new products; while ILC, the healthcare IT firm, is also expanding fast and will later this month launch a new, cutting-edge cash-register software product for pharmacies, with pilot implementation at 500 outlets scheduled for this year and with the prospect of installation at all of the group’s affiliated pharmacies. According to Torfarm, similar products have so far been available only to pharmacies from leading chains.
According to CEO Piotr Sucharski, although the Polish drug wholesaling market may slow this year, the group is looking to 2010 with considerable optimism, as it continues its transformation into a diversified supplier of pharma and healthcare products and services, soon to be renamed Neuca.



2009 was another year of dynamic growth of the Polish drug distribution market, whose value grew by 10.9%. We exceeded our sales forecast by PLN 140m (€35.7m). At the same time, in our sector strong market growth means lesser willingness on the part of drug manufacturers to offer sales bonuses to wholesalers, which adversely affected our group's profits. Another reason were higher-than-expected investments related to the launch of Synoptis Pharma, our pharmaceutical division. The unit made an operating loss of PLN 12m (€3.1m). However, we see huge potential in this project, given the growth prospects of this market segment, the 300% increase in Synoptis Pharma's revenues in the second half of last year compared with H1 2009, and the planned new product launches.

Piotr Sucharski, CEO of the Torfarm Group

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