Pharmacy Pulse Q2 2021 - Analysis of the key trends in the Irish Community Pharmacy sector, prepared by Fitzgerald Power on a quarterly basis.
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Pharmacy Pulse
Q2 2021
Analysis of the key trends in the Irish Community
Pharmacy sector, prepared by Fitzgerald Power
on a quarterly basis.Summary Q2 2021 Revenue Pulse
Covid Vaccinations Turnover
At the end of June, as the incidence of the Delta variant Retail Excellence reports an increase of 13.39% in total sales
increased in the population, pharmacists were allowed to value in Q2 2021 versus the same period last year.
administer the J&J vaccine to younger age groups to speed
along the vaccine rollout. Pharmacists reported a huge Value of Sales: Retail Excellence 13.39%
demand for the vaccine, but noted significant supply issues.
SOURCE: RETAIL EXCELLENCE
Merger The volume of pharmaceutical, medical and cosmetic sales as
Haven Pharmacy and totalhealth Pharmacy have agreed to measured by the CSO, increased by 20% in June 2021 against
merge, following the approval of members. Haven currently the same period last year.
has 49 pharmacies and totalhealth 78 throughout Ireland.
The merger will enable the combined entity, which will trade Volume of Sales: CSO 20%
as CommCare Pharma, to manage a supply chain value in the
SOURCE: CSO
order of €200m per annum. Fitzgerald Power advised on
the deal.
Unit Trends
Chemist Warehouse According to HMR Ireland research, the Irish prescription
Chemist Warehouse, Australia’s biggest pharmacy chain, has market grew by 8.71% in units compared to the same period last
signed a 10-year lease on the former Hickey’s Home Focus year. Retail Excellence reported dispensary volume growth of
store on Henry Street in Dublin. It represents one of the 5.51% in Q2 2021 versus Q2 2020.
first significant new lettings in a year when retail has been
blighted by Covid uncertainty. The group has previously
Unit Growth: HMR Ireland 8.71%
agreed a deal on another location in the capital and has plans SOURCE: HMR IRELAND
for more outlets across the country.
Consolidation Footfall Mobililty
Compared to the previous period in 2020, mobility was
There was notable transaction activity amongst large
down 10% in retail and recreation.
corporate groups in Q2 2021 with Boots, McCauley’s and
Uniphar all completing deals. Of these transactions Boots is The largest decrease was seen in Dublin where mobility
potentially the most noteworthy. Their acquisition of Butler’s declined 23%, whereas the biggest increase was in Kerry at
Medical Hall in Wicklow Town is the group’s first acquisition 22%. Mobility declined 1% in Cork and 6% in Limerick over
for 10 years, and marks a change in direction from the the period.
previous strategy of opening greenfield units.
Changes in footfall Mobility
Vaccinations
20
As of Wednesday 30th June, 4.17million vaccine doses had
been administered in Ireland, meaning 63.2% of the adult 10
population had received at least a first dose. This means
that 3.2million doses were administered in Q2, which is a 0
significant increase from the first quarter figure of 932,234.
The government aims to have a vaccine available for -10
everyone who wants one by the end of the summer. -20
Overall -10% Limerick -6% Cork -1%
Kerry 22% Dublin -23%
Biggest positive movement Biggest negative movement
SOURCE: GOOGLE MOBILITYOTC Tracker
IQVIA data shows the largest growth in OTC sales was in the Top OTC Classes by Growth
VMS & tonics category this quarter, whereas the biggest decline
was in cough, cold and other respiratory medications. IQVIA 20
report that the OTC market in Ireland contracted by 3% in value
10
and 10% in volume in the year to June 2021 versus the year to
June 2020. 0
Value: €421.9m 3% -10
-20
SOURCE: IQVIA OIRMTH MAT 6/2021
-40
Volume: €44.3m 10%
VMS & tonics 19% Skin treatment 1%
SOURCE: IQVIA OIRMTH MAT 6/2021
Digestive (other intestinal) 1% Pain relief -5%
Cough, cold & other respiratory -34%
SOURCE: IQVIA OIRMTH MAT 6/2021
Minor OTC categories have seen significant growth, with
sleep enhancing medications in particular growing at 108%
over the period.
Top Minor OTC Classes by Growth Top Minor OTC Classes by Value
1000 120
100
800
80
600
60
400
40
200 20
0 0
All other miscellaneous products 994% Calm, sleep and mood enhancing 108%
Calm, sleep and mood 108% Urinary and reproduction 25%
Urinary and reproduction 25% Circulatory products 15%
Circulatory products 15% Ear care 11% Habit treatment 5% Eye care 1%
SOURCE: IQVIA OIRMTH MAT 6/2021 SOURCE: IQVIA OIRMTH MAT 6/2021Market Pulse
It was another strong quarter for sales, with Fitzgerald Power
estimating that six transactions completed in the 2nd Quarter of Completed Deals in Q2 by Geographical
2021. Although this is lower than the 15 transactions noted in Q1, Location
it suggests strong consistent growth in the market, particularly
when the Cara deal (13 units) is excluded from the Q1 data.
A corporate group (Boots, McCauley’s and Uniphar) was the
purchaser in three of the six transactions recorded in Q2.
New Openings and Closures
New Openings between
SOURCE: FITZGERALD POWER
1st January – 1st June 2021 5
Closures between 1st January
– 1st June 2021 3
Net Openings between
1st January – 1st June 2021 2 Dublin 0 Ulster/Connacht 1
Munster 2 Leinster 3
SOURCE: PSI
Completed Deals in Q2 by HSE Fees List Position Q1 Q2 YTD
12
SOURCE: FITZGERALD POWER
8 9
7
4 6
4 4 4 1 1
3 3 o o
0
€250k and over €175k-249k €100k-174k Under €100k
Completed Deals in Q2 by Pharmacy Type Sold Q1 Q2 YTD
12 13 13
SOURCE: FITZGERALD POWER
8
5
4 3
2
1 1 4
o o o o
0
Corporate Group Indigenous Group Independent SymbolPerformance Pulse
Overhead spend and operating profit margins remained relatively flat in 2020 with pharmacies in the < €1m and €1m - €1.5m range
showing the greatest variance.
Operating profit performance by turnover bracket – 2019 vs. 2020 2020 2019 YOY
16
15.87 %
15.77 %
15.45 %
14.90 %
12
13.73 %
SOURCE: FITZGERALD POWER
13.06 %
8
9.60 %
8.79 %
0.81 %
-0.67 %
0.55 %
4
-0.10 %
0
< €1m €1m - €1.5m €1.5m - €2m > €2m
Other overheads % 2020 2019 YOY
SOURCE: FITZGERALD POWER
8
7.10 %
6.89 %
-0.03 %
4
5.82 %
5.79 %
-0.08 %
0.08 %
0.21 %
4.92 %
4.52 %
5%
0 4.44 %
< €1m €1m - €1.5m €1.5m - €2m > €2m
Rent % 2020 2019 YOY
SOURCE: FITZGERALD POWER
8
3.40 %
3.18 %
3.33 %
3.09 %
2.73 %
2.64 %
-0.09 %
5.68 %
5.91 %
-0.24 %
4
-0.22 %
-0.23 %
0
< €1m €1m - €1.5m €1.5m - €2m > €2m
Wages % 2020 2019 YOY
30
SOURCE: FITZGERALD POWER
20
23.68 %
23.68 %
22.33 %
22.52 %
22.04 %
21.91 %
20.73 %
20.21 %
-0.52 %
10
-0.61 %
0.29 %
0%
0
< €1m €1m - €1.5m €1.5m - €2m > €2mFitzgerald Power is the leading financial advisor to the Irish community pharmacy sector and the leading pharmacy sales brokerage firm in Ireland. We’d love to hear from you so please get in touch if you think we can help. Waterford Dublin Greyfriars 3013 Lake Drive Waterford City Citywest Campus fitzgeraldpower.ie Waterford Dublin 24 info@fitzgeraldpower.ie T: (0)51 870152 T: (0)1 6794772 F: (0)51 871214 F: (0)1 6794775
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