A&D: turnover and profit up, margins down

A&D Pharma, which groups the Mediplus distributor and the Sensiblu drugstore chain, posted a net profit worth 17.82 million euros last year, up 7.4% against 2005. At the same time, the net profit margin fell to 5.4% from 6.7% recorded in 2005. This can be explained by the fact that the group’s turnover grew faster than the net profit. A&D Pharma therefore closed 2006 with a 331.6 million-euro consolidated turnover, 34% higher than in 2005. “Last year we completed the integration of Ideapharm, acquired in 2005 (from GSK), which had a significant impact on the recorded figures. In 2006 Sensiblu’s drugstore network increased by 31 stores. The maturation period of drugstores usually starts in their second year of activity, when they can receive funds for subsidised drugs,” stated Dragos Dinu, CEO of A&D Pharma. In terms of profit, the results were higher than the initial estimates made by the company, with the upward trend expected to maintain this year, says Florin Buligoanea, CFO of A&D Pharma. The A&D Pharma group reported a consolidated EBITDA of 28.1 million euros up 12% against the 25 million euros reported in 2005.