Pharmacy Chain 36.6 reports sales growth of 21.6% for 2008

Russia-based Pharmacy Chain 36.6 has posted provisional annual results, reporting consolidated sales growth of 21.6% and reached USD1.05 billion. Pharmacy retail sales grew by 24.9% and reached USD840.8 million. Sales of the franchised Early Learning Center chain grew by 90% to USD5.7 million. Jere Calmes, President and CEO, said: “Our preliminary 2008 results show some important achievements. Despite the difficult Q4 downturn, we managed full year growth of over 21% in both our pharmaceutical retail and manufacturing units. We have significantly reduced our financial debt and made a solid breakthrough in our retail chain private label programme. Nevertheless, the difficult economic and financing environment continues to present challenges for our business going forward. We will continue to work with our Board of Directors to resolve the funding issues while focusing on cost reduction in the operations and value propositions for our customers.” As of the end of 2008 36.6 operated 1,127 stores in 29 regions of Russia as well as 11 ELC stores, 14 stand-alone optical outlets and 21 additional optical departments within pharmacies. In 2008, private label sales reached USD34.8 million, representing 300% growth on 2007. In 2008, the share of private label sales reached 4.1% as compared to 1.3% in 2007. The number of SKUs has increased from 319 at the end of 2007 to 698 by the end of 2008.

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