Planet Pharmacies LLC
Country |
UAE |
Industry |
Retail Pharmacies |
Year Established |
2007 |
Investment Date |
2007 |
Commitment |
USD74.9mn |
The Company
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Planet Pharmacies (“Planet”) is a UAE based company focused on the acquisition, operation and management of retail pharmacies in the MENA region and is one of the leading healthcare products retailers & distributors in this domain.
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The Company acquired the pharmacy and distribution business of Julphar. Post-acquisition, the Company had sold off and closed some non-performing branches and initiated an acquisitive growth plan.
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Planet acquired a large retail pharmacies’ chain in KSA with 51 pharmacies in addition to other pharmacies in Oman.
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After optimization of the store portfolio and ongoing expansion, the Company currently has 162 retail pharmacies, spread across UAE, Oman & KSA.
The Challenges
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Consolidating the business was one of the key challenges across the various pharmacies in different countries.
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Optimal utilization of excess cash.
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Expansion by acquisition and the introduction of new investment opportunities.
Our Approach to Add Value
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Helped in finalizing the acquisitions made which lead to the enhancement of value proposition from new manufacturing initiatives.
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Internal audit reviews and improvement in internal controls.
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Improvement in reporting and financial performance dashboards.
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New acquisitions initiatives/targets in UAE and KSA.
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Optimizing the company’s capital structure to maximize shareholders value.
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Additions to the management team and hiring and induction of the Group GM.
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Overseeing the growth in new agencies business and development of the warehouses in UAE, KSA & Oman.
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Promoting management by objectives and long-term incentive scheme for alignment of interests.
The Result
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Planet has effectively consolidated its business operations and has now a sustainable revenue stream.
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Planet has grown its retail pharmacies network across three countries, closing non-performing ones and optimizing the number of operating pharmacies.
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Steady growth in revenues with improving net income after the reorganization of the Company. In 3 years only (from 2011 till 2014):
Revenues grew by 1.6x
From a negative EBITDA of USD5.8mn to a positive EBITDA of USD13.3mn
From a Net Loss of USD6.0mn to a Net Profit of USD11.1mn