Confidence that the pharmaceutical industry FAMAR has already turned the page since 2020, when its activities in Greece, Italy and Spain were included in the portfolio of the Cypriot fund Elements Capital Management, Apostolos expresses in an interview with K. Sagiakos, Vice President and Consulting Managing Director of FAMAR Greece. Mr. Sagiakos talks about FAMAR’s progress since its financial reorganization and the injection of liquidity it has received from new shareholders for its return to growth, estimating that its profitability will increase by more than 30% over the three years from 2020 to 2023. He highlights an investment of more than 5 million euros in a pharmaceutical storage and distribution center that the company maintains in Thebes, noting that its modernization will strengthen its position in the logistics market. Finally, Mr. Sagiakos is optimistic about the size of the group this year, believing that its turnover will exceed 227 million euros and profits will exceed 20 million euros, and this amount will be completely reinvested in the company.

– In fact, FAMAR has already turned the page since 2020, when the company’s activities in Greece, Italy and Spain moved into the Elements Capital Management portfolio. The group’s financial results from the very first year recorded a significant profitability: EBITDA reached 15.2 million euros, and in 2021, despite the difficult circumstances created by COVID-19, a further increase in profitability of 12% was recorded, reaching 17.1 million euros.

Success came as a result of proper planning and the commitment of new stakeholders to the organization. It all started with a major financial restructuring, and new shareholders with a €30 million liquidity injection ensured the liquidation of the organization’s debt, stabilizing our cash flows and returning growth. Along the same lines, during the pandemic, the group has invested 3.8 million euros to ensure the continuity of its operations, the safety of its people, and the support of the communities in which it operates.

We are now well capitalized and are the European market leader in providing CDMO services to the pharmaceutical industry. Our profitability is estimated to grow by more than 30% over a three-year period (2020-2023), with profits continuously reinvested in our business plan. A fact that allows us to talk about a stable development path, strengthening our positions in the Greek and international markets.

– With a view to our further development, our business plan includes a number of investments in the field of research and development, as well as in the field of distribution, which we hope to reveal more in the near future. Today, the group has six manufacturing plants and three research and development centers in Greece, Italy and Spain, and in Greece, Thebes, it also maintains the largest logistics center.

In the meantime, I would like to mention our ongoing investment in a warehouse and distribution center in Thebes, which will be completed in 2023. Our distribution center in Thebes is the largest pure pharmaceutical distribution center covering over 60% of the total market. Greek market. We are currently responsible for approximately 5,000 drug codes distributed in over 2,500 locations (hospitals, pharmacies, etc.) throughout Greece, and since February 2021 we have also taken over the distribution of COVID-19 vaccines in some the most remote regions of our country.

This is a very important investment, in excess of 5 million euros, aimed at strengthening the warehouse capacity of the existing division and ensuring proper conditions for the storage and transportation of pharmaceutical products. With regard to storage facilities, the area will increase by 16,000 sq.m. creation of 20,800 additional pallet spaces, which translates into a 122% increase in stocking dynamics at the piece level, i.e. from 90 million pieces to 200 million. In addition, the investment includes the purchase of electromechanical equipment (cold rooms, air conditioners with automatic racks, etc. etc.), modern vehicles (pallet lifts and carts), as well as modern electronic controls/alarms, which will ensure that the proper storage and transport conditions of products, especially in terms of temperature, are observed. for the entire period that the products are under our responsibility, i.e. from the moment they are received to the final delivery point.

Our profitability is estimated to increase by more than 30% over the three years from 2020 to 2023, with profits to be reinvested.

– I should note that the company had and still has the principle of officially informing about important changes in business and initiatives. The update is not a prior notice. This is in the context of our development path and the priority we have set as an organization for the continuous improvement of our services. With this investment, FAMAR aims to create an exemplary center for the storage and distribution of purely pharmaceutical products (Centre of Operations Excellence), which will further strengthen our market position through multiplier advantages in the products and services we offer to customers and in the Greek market. .

– Rising energy costs, as well as the availability of raw materials are global challenges. Uncertainty has taken the place of normality, causing serious concern throughout the business world and, of course, FAMAR is no exception.

Nevertheless, for our part, we try to take the necessary actions to ensure smooth operation, since it is an absolute priority for us that patients do not face a shortage of medicines we produce. To date, we have invested 4 million euros to offset pressures from inflation, supply chains and raw materials, and energy costs. In addition, we have entered into strategic agreements with suppliers to limit the risk of shortages of raw materials, at the same time, we have started an investment of 1.5 million euros to establish a photovoltaic park with a total capacity of 1,400 kW and an annual production of 1,800,000 kWh. At the group level, this is a total investment of €3.5 million in photovoltaic parks with a capacity of 4,500 kW and an annual energy output of 5,500,000 kWh, and it is worth noting that these are parks that meet the highest standards. security, efficiency and sustainability by creating safety nets to address energy challenges.

I would also venture to say that the challenges have largely been the driving force behind our investment in the ESG strategy. Photovoltaic parks will play an important role in achieving the goal of reducing CO2 emissions by more than 40% by 2030, which will significantly reduce our environmental footprint.

– What I can tell you for sure is that the positive results of FAMAR continue to this day. Despite a significant increase in energy costs, which makes the period we are living through too volatile to make predictions, we are quite optimistic. According to our latest estimates, we expect our turnover to exceed 227 million euros, i.e. it will close with a growth of 13.3% compared to last year, and the group’s profit is estimated at more than 20 million euros, an amount that will fully reinvested. in the company, noting an increase in EBITDA of 19% compared to 2021, which reached 17.1 million euros.

Partnerships and acquisitions

– At this stage, the organization is focusing on its development course and strengthening its extroversion to continue gaining positions in the international CDMO market and achieve a gradual increase in market share. In this direction, our strategic planning primarily includes organic growth and, in the second stage, the evaluation of strategic partnerships and acquisitions. Therefore, we are considering proposals and ideas that will help us achieve our goals of entering new markets, attracting new customers and offering innovative services.