A regional chain of pharmacies plans to double its EBITDA within five years and is looking to expand abroad

The company turned to Matrix Consulting to carry out strategic planning with the aim of doubling EBITDA within five years from its operations in Chile, Colombia and a possible international expansion.

Context

Following a challenge set by the board of doubling the company’s EBITDA within five years, a chain of pharmacies operating in Chile and Colombia turned to Matrix Consulting to carry out a planning process, covering its existing operations and opportunities for international expansion.

Opportunities detected

The company had a very solid business, that was growing, provided excellent returns and was a leader in its principal markets. In addition, the company had a diversified business portfolio and a regional presence.

Given the company’s robust situation, early challenges were identified:

Develop significant opportunities in businesses where it had already solid foundations
Focus efforts on isolating the core business and prioritize growth opportunities
Build flexibility into the plan to be able to tackle regulatory or macroeconomic changes in the region

Proposed actions

Given its leadership position in the market, it was decided that the company should focus on increasing profits from operations and protecting its market position. Initiatives include expanding the portfolio of clients through a “push” focus; strengthen side sectors with good growth potential: increase gross margins through better negotiations: and increase its footprint in specialized formats in related categories.

It was also determined that a potential expansion abroad was key to consolidating the company as a key player in the regional market and various growth opportunities were evaluated.