Northeast is challenge for Brazil Pharma

Brazil Pharma, BTG group, is the pharmacy company that has shown more aggressiveness in expansion in recent years. The company, created in 2009, has pursued the goal of becoming the largest group outside the Southeast segment. This is because in addition to the large competition in the region, the costs also are higher in this area of the country.
However, even with the accelerated expansion — were ten acquisitions in four years — and the prospects for growth in this market, Brazil Pharma admits that the retail pharmacist recently serious challenges. "A downside of the market is the increased competition in the Midwest and northeast regions," says André Sá, President of the Brazil Pharma.
In the Midwest, the company operates the Drugstore rosary and franchises of Farmais. "We remain a leader in the region, but it would be naive to say that the competition will not increase," says Samuel. In the northeastern region is the State of Bahia that presents a fiercer competition, says the Executive. There, the company operates the pharmacy units Samir. The situation in the State was even more complicated for the company last year because of fire in its distribution center located in Salvador.
The accident caused the company depended of the distributors to supply the shops of Bahia, which made it more difficult to get good negotiations with the manufacturers. Now, with the completion of the new distribution centre, in Camaçari, the company hopes to take over the reins of the market.
For this year, is scheduled to open two more deposits: one in the North and another in the South of the country. The company also has warehouses in Belém (PA), Jaboatão dos Guararapes (PE), Brasília (DF) and Canoas (RS). The second downside faced pharmacy retail, second Samuel, relates to costs and inflation. "Inflation has been a problem for the country as a whole. We are trying to circumvent this with increased our efficiency. In the company, we have less people doing more, "he says.
Organic growth should continue at the same pace as last year, when the company opened 96 units. "We will inaugurate around one hundred units. Above that increases the possibility of making mistakes, "says Samuel. In 2012, the company grossed $ 2.6 billion, up 168.5% in comparison with the previous year. The net profit for the period fell 63.8% to r $ 2.9 million.