Statlig Apoteket reports a historically strong third quarter. Net sales increased by 10 percent to SEK 7,251 million, compared to SEK 6,619 million during the corresponding period last year.
At the same time, operating profit surged by 49 percent to SEK 235 million, up from SEK 158 million the previous year. The operating margin thus strengthened from 2.4 to 3.2 percent.
Best Since Deregulation
According to the company's CEO, Rasmus Nerman, the quarter is a historic milestone for the state-owned pharmacy giant, which today has 398 physical pharmacies combined with a growing online store:
We can state that Apoteket reports its best quarter since deregulation, which is very pleasing.
The profit increase is mainly driven by a positive development in the physical pharmacies within both self-care and prescription drugs, where continued high demand for obesity drugs has contributed to higher average prices. At the same time, the digital business continues to move strongly forward after e-commerce showed good wind in its sails.
The result is primarily driven by strong sales in stores, with a positive development in both self-care and prescription drugs. E-commerce also contributes positively to the period's results, while we are seeing clear improvements in dosage and care, says Rasmus Nerman.
Major Investment in Tech and AI
The interim report shows that Apoteket has increased its costs during the year – an increase that the company explains with extensive investments in new technology, digital solutions and artificial intelligence.
During the first nine months of the year, the company's investments amounted to SEK 106 million, with the development of new tech solutions highlighted as a prioritized area. Rasmus Nerman highlights how technology is fundamentally changing the business:
Investments in our technical prerequisites continue. AI is an area where development is happening rapidly and where we have chosen to work structurally with both technology and expertise. It is pleasing to see how AI is gradually becoming part of our daily working methods and contributing to the development and efficiency of the business.
Warns of Price Pressure Online
At the same time as digital commerce is growing, Apoteket points out the ongoing channel shift as one of its absolute biggest market risks. In the report's risk analysis, the company states that consumers' move to the internet risks escalating the price war on the market:
The impact of the current economic climate on consumers' purchasing power and the channel shift to e-commerce entail a risk of increased price pressure on the pharmacy market.
To counter price pressure and meet competition from pure-play online pharmacies, Apoteket is working to optimize processes and systems, while security is tightened against more sophisticated cyber threats in line with increased digitalization.