Robinsons Retail acquires drugstore chain in Batangas

Rappler.com

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The purchase is the third acquisition of Robinsons Retail in 2014, further expanding its footprint in the drugstore industry through strategic mergers and acquisitions

MANILA, Philippines – Robinsons Retail Holdings Inc., through its 90% owned subsidiary South Star Drug Inc., recently acquired Chavez Pharmacy, a Batangas homegrown chain of drugstores.

The purchase of 100% stake in Chavez Pharmacy is the third acquisition of Robinsons Retail for 2014. Started in 1975, Chavez Pharmacy operates 7 drugstores.

“Our family is delighted with this move knowing that Chavez Pharmacy will be well taken care of by South Star Drug. I have full confidence in South Star Drug in continuing with our legacy of offering good quality, safe, effective, and more affordable medicines to our clients and customers as depicted in our corporate tagline Kaakibat sa Kalusugan,” Chavez Pharmacy Corporation president Gloria de Chavez, said.

Mergers and acquisitions are one of the strategies of South Star Drug to strengthen and expand its presence and reach in the drugstore industry. In 2011, South Star Drug acquired the 53-drugstore chain of Manson Drug in Central Luzon and it has successfully integrated the stores in its portfolio in less than a year.

“I am very pleased with the acquisition of Chavez Pharmacy. The owner is a very active member of the Philippine Pharmacists Association and Drugstore Association of the Philippines, thus we can tap her knowledge and relationship in the drug store industry to further strengthen our presence in the country,” South Star Drug managing director Dahlia Dy, said.

South Star Drug—the country’s third largest drugstore chain—is a partnership between Robinsons Retail and the Dy family. At 77 years old, it is the largest drugstore chain in the Bicol region and Central Luzon. South Star Drug recorded 26 store openings in the first quarter of 2014, more than the 21 stores opened in 2013. It had a total of 265 stores as of end-March 2014 and plans to end 2014 with over 300 stores.

For 2013, South Star Drug generated P6.3 billion in net sales on robust same store sales growth (SSSG) of 6%. It sustained this SSSG growth in the first quarter of 2014 at 6.2%, resulting in a 12.1% year-on-year increase in net sales to P1.7 billion. EBITDA (earnings before interest, taxes, depreciation, and amortization) expanded by 18.2% year-on-year in first quarter 2014 to P78 million while full year 2013 EBITDA reached P320 million.

Robinsons Retail operates 10 retail formats under its 6 business segments: supermarket, department store, Do It Yourself stores, convenience stores, drugstores, and specialty stores carrying international fashion and cosmetic brands. As of end-March, Robinsons Retail had a total of 1,145 stores in the country. – Rappler.com

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