Uriach continues its expansion in Europe after the takeover of the Romanian company Medimow
Barcelona, 22 June, 2022 – Uriach continues rapid growth, returning to double-digit growth for the ninth consecutive year in 2021. Its turnover for Natural Consumer Healthcare, which is now its only business, exceeded €235 million - an increase of 42% compared to the previous year (when it exceeded €165 million).
This extraordinary growth is partly driven by the takeover of the company Sidroga, present in Germany, Switzerland and Austria, in early 2021. It is a robust and well-established company with a history dating back more than 150 years, a leader in some segments of the market including medicinal teas and products based on salts and thermal waters for winter pathologies. Its portfolio is entirely based on natural consumer healthcare products, and its turnover approached €50 million last year.
In addition, business in the other countries and categories has continued to grow at a good pace, compared to a 2020 financial year that was very significantly affected by the Covid pandemic. This magnificent growth for Uriach's business is thereby completed, as it continues to expand, supported by both organic and inorganic growth, as it has been doing over the last decade.
Uriach's accounts for 2021 also include a few months of the B2B business which was sold during the financial year. The real turnover figure is therefore higher, but if the figure is to be comparable with the one which will be obtained this year, the €235 million mentioned above must be taken as the benchmark. The outlook for 2022 remains excellent, despite the difficulties due to inflation, shortages and supply difficulties, the impact of the war in Ukraine, etc. Growth of approximately 15% is expected this year, which is an excellent figure in view of all of the factors mentioned above.
Apart from the increase in turnover, profitability is moving in the same direction, with an EBITDA of the Natural Consumer Healthcare business exceeding €38 million in 2021. This is an increase of 41% compared to the previous year, which means that Uriach can continue investing in growth.
A new acquisition
Continuing its international expansion focused on its direct presence in Europe, Uriach has recently completed the takeover of the Romanian company Medimow, which specialises in the development and marketing of food supplements for pain, gynaecology and paediatrics, among other specialist products, and which had been the distributor of Uriach products in Romania since 2018. Medimow posted sales of €2.1 million in 2021, and its business plan anticipates rapid growth that will enable it to exceed at least €7 million in 2025, although depending on how the synergies identified are implemented, this figure could be higher and approach €10 million.
Uriach's growth in Europe continues with this acquisition. This international expansion began with the takeover of Laborest in Italy in 2015. In the last 7 years, it has attained a direct presence in seven European countries: Spain, Italy (by purchasing Laborest in 2015, and ARFitofarma and Progine in 2019), Portugal (with the takeover of Theralab in 2018), Germany, Austria and Switzerland (with the purchase of Sidroga in 2021) and Romania after the recent takeover of Medimow in 2022.
In addition to this direct footprint in Europe, Uriach has a joint venture agreement to market its brands (including Aquilea, Fisiocrem and Laborest) in Greece, and is continuing to expand its business elsewhere in the world through distribution contracts. This has all enabled the company to experience an extraordinary transformation over the last ten years:
"Our vision is to become the European leader in Natural CHC in the coming years. This vision is a reflection of our ambition, which will give us a turnover of between 450 and 500 million Euros in 2025. To achieve this, geographical expansion through corporate operations continues to be a key factor in our strategy to achieve this aim, but we are not relying solely on this inorganic growth. For organic growth, we will also continue to achieve double-digit growth rates, taking advantage of the constantly increasing synergies that are generated between each country's various portfolios and businesses," explains Oriol Segarra, the company's CEO.
France continues to be one of Uriach's priorities for establishing a presence in the major European markets in the coming years. Other areas such as the Nordic countries and some important markets in Eastern Europe could also round off the objectives, in addition to possible opportunities which would strengthen Uriach's position in the countries where it already operates, such as in Italy, where two acquisitions in addition to the first one have been made.
Completing the company's strategic transformation
The last decade has involved a profound transformation for Uriach. This transformation, which has been driven by the Board of Owners (which contains shareholders belonging to the fifth generation) and by the Board of Directors, now chaired by Luis Cantarell, and led by Oriol Segarra as the company's CEO, has taken place in five areas: (i) the professionalization of corporate governance, (ii) the strategic approach of the business to Natural CHC, (iii) rapid profitable growth to acquire critical mass, (iv) internationalisation and (v) the development of a corporate culture and a relationship with the people who work at Uriach that makes it a unique company.
Some years ago, Uriach anticipated the now consolidated mega-trend towards a consumer perception of health as something holistic, going far beyond curing illnesses with medication, and becoming a reflection of different habits and something much more preventive, natural and sustainable. Covid has simply accelerated this trend. Uriach empowers and accompanies the consumer in this paradigm shift, providing the best products for caring for human well-being - the result of combining the best natural ingredients with science and innovation.
The success of this strategy has enabled it to position itself as one of the most important players in Europe in this business segment, not only because of its size and geographical presence, but also because of its portfolio, in which global and local brands as strong as Aquilea (Spain's leader of food supplements, which is highly innovative and focused on consumers and pharmacies), Fisiocrem (for muscle preparation and recovery and treatment of joint pain, in order to maintain the lifestyle you want), Laborest (the leader in Italy in the segment of highly sophisticated food supplements marketed through medical appointments), Depuralina (the leader in weight control in Portugal), Sidroga (the leader in medicinal teas in Germany and Switzerland), and EnRelax, Biodramina, Aerored, Fave de Fuca, Halibut and Ems, among many others.
Continuing with this clear and successful strategy, some of the keys for Uriach in the coming years will be: (i) the ultimate expression of innovation in order to have the best natural products on the market to meet the consumer's primary needs; (ii) the construction of leading global and local brands, recognised and preferred by consumers; (iii) the continuation of the international expansion in Europe (sales by the CHC business in Spain today account for just over 25% of the total); (iv) maintaining rapid and profitable growth in order to achieve the desired critical mass; (v) the maximum development of a professional and efficient governance structure given the complex situation created by internationalisation, in which sustainability will also be an integral part of the strategy; and (vi) the maximum expression of a corporate culture and relationships with unique, distinctive people which make the company (certified as a Top Employer for the last 6 years) a benchmark and enjoyable place to work.
About Uriach
Uriach is a company that believes in the power of nature, enhanced by science, as the best way to improve human health and well-being, and also the most sustainable. Uriach wants to have a positive impact on both people's lives and the planet. That is why we are 100% focused on Natural Consumer Healthcare. We offer the consumer the best natural products, based on robust science and innovation.
With a history dating back over 182 years, our iconic international brands include Aquilea, Fisiocrem, Laborest, Aerored, Fave de Fuca, Utabon, Biodramina and Halibut, and we are present in the main European markets. Today, Uriach has more than 850 partners. We have subsidiaries in Spain, Italy, Portugal, Germany, Austria, Switzerland and Romania, we have joint venture agreements with local companies in Greece, and we sell our products in more than 20 other countries.