“We’ll have in view the independent pharmacies willing to sell their licenses in cities seen as strategic for Dona development. We will also eye operators owning several pharmacies and wanting to completely exit the business, not just renounce unprofitable pharmacies,” stated Ovidiu Wencz in an interview with ZF.
“We are not interested in taking over large chains as we could have more pharmacies to relocate,” added Wencz.
Dona operates a 275-unit network and at the end of 2015 is likely to reach 320-350 units. Dona is a Romanian entrepreneurial business developed by entrepreneur Eugen Banciu. Dona saw its revenue rise from RON356 million in 2008 to almost RON800 million last year.
For 2015, the company wants to reach RON1.1 billion amid expansion and growth of some already existing units.
“If we do not take over a certain license, somebody else certainly will. It is like a big stake poker game. If you want to remain among the three largest chains and have an adequate position in front of suppliers from which you should be able to get competitive commercial conditions, you have no choice but to be in the big league,” said Wencz.
He puts this year’s acquisition budget at EUR2 million taking into account the acquisition of 20 licenses, but the sum does not include business takeovers, but just licenses.
Expansion could also involve some franchises. “There are entities wanting to embrace the new Dona concept, we are in talks to this end and we’re open to the idea of franchises, but this is just a fledgling project”.
For large retailers such as Dona, the battle for expansion targets several areas: that of large cities where they “must” be present, small cities or areas around a city.
(English version by Catalina Apostoiu)