Tamro Lithuania

• net sales EUR 102 (104) million
• personnel 402
• average market share in wholesale 19%

Market overview

In 2007/08, pharmaceutical sales in Lithuania continued to grow by 17%, to EUR 346 million in PPP. During the reporting period, Tamro Lithuania’s sales was EUR 102 (104) million, down by 2%, mainly as a consequence of a major retail group starting their own wholesale operation.

During the year 2007/08, vertical integration between pharmaceutical wholesalers and pharmacies increased significantly. In retail, the sales of pharmaceutical chains grew much faster than in independent pharmacies due to the expansions and aggressive marketing activities.
As a result, pharmaceutical chains succeeded in lifting their market position to 85% (76%).

Main events

Ranking as the second largest wholesaler in the market, Tamro Lithuania continued to hold a 19% market share in wholesaling. In retail, Tamro Lithuania’s pharmacy chain Seimos Vaistine had a 6% market share with fully owned shops. Tamro continues its expansion into the retail sector by acquiring and opening new pharmacies.

Ms Rita Juskyte was appointed as Retail Director in May 2007.

Outlook for 2008/09

The pharmaceutical market is expected to grow by 11% in 2008/09. Pharmacy chains will continue to grow above the market rate.

The price competition of retailers and the price sensitivity of customers will limit the margin increase in both retail and wholesale. The shortage of qualified staff and high inflation rate are predicted to raise retail personnel expenses.

Tamro Lithuania’s main aims are to strengthen its market position in wholesale and to boost the retail market share.

Key Figures