Who’s Leading Serbia’s Private Pharmacies Retail Sector?

Discover Which Companies Are Leading Serbia’s Private Pharmacies Retail Sector.

This week, we shifted our focus to Serbia’s Pharmacy Retail Sector (NACE 4773) — a dynamic industry that continues to evolve rapidly. Characterized by established market players, emerging regional chains, and a clear segmentation in profitability, the sector offers a dynamic view of performance in a regulated environment. While valuations continue to be heavily influenced by revenue, growth and financial structure are proving to be equally important factors in understanding market leadership.

Let’s unpack the findings.

🔍 Key Insights from Our Analysis

✅ Top Valuation Leader
Benu leads the sector in overall valuation, leveraging its scale and wide market reach. It is closely followed by Lilly which holds the top spot in revenue—driven by its strong brand positioning and extensive retail footprint.

✅ Profitability
The sector’s EBITDA margins range from –3% to 9%, grouping firms into high-margin performers, mid-tier operators, and those with room for improvement. Lilly tops the list with an EBITDA margin of around 9%, followed closely by Benu at approximately 7%, signaling strong operational efficiency and disciplined cost control.

✅ Revenue Growth
Oaza Zdravlja leads the sector in year-over-year growth, outperforming both larger and similarly sized competitors. Lilly and Benu also show strong growth momentum, further solidifying their positions as top-tier performers.

✅ Sector Structure
The diversity in EBITDA performance reveals a segmented competitive landscape. Firms are clearly divided into high-efficiency leaders, mid-level operators, and underperforming outliers. This structure offers insight into the strategic levers available to different players — whether through margin improvement, expansion, or restructuring.

✅ Valuation Drivers
While revenue size remains the primary factor influencing valuation, the data shows that growth and profitability are gaining importance—particularly among mid-market players. One notable outlier is Dr. Max, which boasts the highest growth rate in the sector but a relatively lower valuation. This is largely due to its financial leverage, which boosts growth metrics but introduces higher risk, prompting a more conservative market valuation.

📈 The Bigger Picture

Serbia’s pharmacy retail sector is evolving beyond traditional revenue-based leadership. While large players continue to dominate by size, companies like Lilly, Benu, and Oaza Zdravlja are redefining success by combining growth with operational excellence.

On the other hand, firms like Dr. Max highlight the importance of capital structure in financial analysis — showing that headline growth numbers don’t always translate to premium valuations.

As the sector faces continued pressures from pricing regulation, supply chain challenges, and increasing demand for healthcare products, profitability, efficiency, and sustainable growth will be key to long-term market leadership.

🔮 Looking Ahead

This analysis is based on historical financial data from FY 2024. As healthcare retail continues to respond to economic pressures and evolving consumer needs, we expect further divergence in strategic direction and performance across the sector.