This year, Czech e-commerce is thriving even faster than usual thanks to an otherwise unfortunate pandemic, which is reflected in the results of companies such as Pilulka. The pharmacy group recorded the best results in its six-year history, during the first half of the year earned 1.6 billion crowns, which means almost a half year – on – year increase. For the first time, it also boasted a modest profit of 16 million crowns, and to support its growth, it is now turning to investors. On the Prague Stock Exchange, Start will offer a total of one-fifth of the newly issued shares.
If everything goes through the regulatory authorities, Pilulka will become the first publicly traded e-commerce company on the Prague Stock Exchange in history. Within the PX Start market, shares of smaller innovative companies are traded, but in the coming years the progressive pharmacy company would also like to take advantage of the capital market and move to the main market of the Prague Stock Exchange.
“We want to set an example for other e-commerce companies and stir up the capital markets in the Czech Republic. We had a number of offers from financial and strategic investors from the Czech Republic and abroad, but we opted for a public offer, ” describes Martin Kasa, co-founder and co-owner of Pilulka.cz.
For CzechCrunch, Martin Kasa confirmed that the company wants to raise approximately 100 to 200 million crowns as part of the share issue, which, given the one-fifth share offered, would value the Pilulka Group at 500 million to 1 billion crowns. “The amount we want to collect has been determined with a clear business plan,” Kasa states that the public offering of shares took precedence over private investors for a clear reason.
Martin Kasa, co-owner of Pills
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“It doesn’t mean we can’t get an investor. On the contrary. We had a number of offers. But both the financial and strategic investor – each slightly different – wants to significantly influence the company in their interest, “ says Kasa. In recent years, the company has reportedly been interviewed by dozens of people who would like to invest in it.
“Now they will be able to invest through a clearly defined platform and with parameters that are completely transparent,” continues forty-year-old businessman. “If the subscription is carried out according to plan, it will be an incomparably more interesting process than selling part of the company to financial or strategic investors.”
The current shareholders of the group are 69 percent of the company’s founders, brothers Martin and Petr Kas, together with business partners and employees, the rest belongs to the investment group Wood & Company. With the issue of shares, all shares will be reduced in favor of the newly issued 20% share, which will be offered to investors.
The Pilulka Group currently operates in three markets, in addition to its home Czech Republic, also in Slovakia and Romania. Announced last year entry into Hungary has been delayed due to the coronavirus pandemic, is currently scheduled to take place next year, and new financial resources from the stock market may help.
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Shipment packaging from Pilulka.cz
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Last year the pill in all markets earned almost 2.5 billion crowns. During the first half of this year, its sales from Internet sales increased by 68 percent year on year, stone pharmacies earned 33 percent more than last year. Half of the total sales are sales on the Internet, the other half is then divided between stone pharmacies operated directly by Pilulka and its franchise partners.
In the future, Pill expects its annual sales to grow at a thirty percent rate, but at the same time plans to further increase its profit. “From the public offer, we promise to secure financing for further expansion abroad and technological development,” describes Martin Kasa. “Not only have recent months shown that digitization is moving very fast, even faster than we could all have imagined a few months ago,” continues with reference to a one-off March jump hundreds of percent compared to normal.
“We are convinced that the Pill will be the dominant player in the field of pharmacy and health services in Central Europe in a few years.”
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Interested parties will be able to purchase Pill Shares after regulatory approval – as Kasa expects in a matter of weeks – through regular securities dealers such as the Wood & Company. “The Prague Stock Exchange is gaining another interesting issue, in addition from the sector, the importance of which will grow not only in the current coronavirus period, but also in the future.” says Jan Sýkora, Chairman of the Board of Wood & Company.
“The coronavirus period dramatically accelerates the shift of all of us to the online world, where the Pill is a strong disruptor, which is promising and sympathetic to us. The pill brings new comfort to the pharmacy business in Central and Eastern Europe and is ready to actively transform it, ” adds Tomáš Jaroš, CEO of Patria Finance, through which investors will be able to buy Pill shares.
“We are convinced that the Pill will be the dominant player in the field of pharmacy and health services in Central Europe in a few years, and the transparency of the stock exchange can help. We have also decided to give smaller investors and people in the industry a chance who have approached us in recent years with the intention of investing in us and being part of the Pill’s success story, “ adds Martin Kasa.
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