Stada is one of the largest drug suppliers in Russia. Now the Western sanctions are likely to hit the Hessian group. But he can rely on good business in other regions.
The drug manufacturer Stada expects losses in its important Russian business because of the Ukraine war, but is confident after a strong financial year.
He is currently not worried about the demand for medicines in Russia, said CEO Peter Goldschmidt of the German Press Agency. Rather, it is a challenge to ensure the supply chain and production. “From an economic point of view, the development of the ruble is particularly important,” said Goldschmidt. Since Stada balances in euros, a further weak course of the Russian currency would hit the Grippostad manufacturer.
Russia is one of the most important markets for Stada and contributes around 14 percent to sales. The group employs 2,100 people there, about a sixth of the global workforce, and is one of the largest local suppliers. “In the medium term, we can compensate for losses in Russia with growth in other countries,” said Goldschmidt. Stada wants to stick to its Russian business.
Missiles very close to the factory
Goldschmidt is also concerned about the war in Ukraine, where Stada has around 440 employees. In Kyiv, the group has a factory near the military airport. It’s still standing, but rockets have landed nearby, he said. The employees are fine.
Last year, Stada’s sales increased by 8 percent to 3.25 billion euros, as the group announced on Tuesday. In Europe, numerous countries, including France and Spain, reported double-digit increases. The profit grew by almost 45 percent to 264 million euros. There were no negative special effects that had burdened the result in 2020. In 2021, Stada also managed to compensate for the low demand for cold medicines in the pandemic – for example with acquisitions and strong sales of dietary supplements. In times when masks were compulsory, the cold and flu season was mild in many places.
According to Stada, it is the fourth largest provider of over-the-counter medicines and generic medicines in Europe. In addition, the group is increasingly focusing on special pharmaceuticals such as Parkinson’s therapies. With the support of the financial investors Bain and Cinven, who took over Stada in 2017, the company spent a lot of money on acquisitions and accepted a relatively high level of debt.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
