Farmexim - 3.7m-euro operating income in H1

Farmexim, a major distributor of pharmaceuticals, in the first half generated turnover worth 354m RON (83.9m euros), up 22% in RON from the year-ago period and operating income worth 16m RON (3.7m euros). “In H1 we still faced a series of financial challenges, mainly as prices of imported products were downwardly revised starting April 1. May was a little more difficult than the other months, but in June things got back to normal, so that we’re still upbeat as regards the 3%-4% profit margin targeted for the end of this year,” says Ovidiu Buluc, Farmexim’s majority shareholder. For 2009, the company has budgeted 20% turnover growth, to 725m RON (172m euros), which would push operating income beyond 21m RON (5m euros). Farmexim counts on a 10% market share in retail (sales to drugstores) this year, up from the current 8%. As most wholesalers, Farmexim incurred losses last year, of 24m RON (6.5m euros). Consequently, the company started a cost cutting programme that led to a net result of 3.8m RON (0.9m euros) in the first quarter.