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Zhivko Mukaetov

Chief Executive Officer / Management Board President of Alkaloid AD

Since 2005, the Alkaloid is presenting average growth rate of 12.4%, reaching fivefold company growth since then. We ended 2023 with turnover of EUR 268,3 million. In the pharmaceutical industry, placements usually correspond with investments, skills and people’s knowledge, that in the past two decades we advanced into building a modern and competitive portfolio. In the past 15 years, Alkaloid executed numerous investment projects, amounting to EUR 220 million and we plan to remain on that track in future. 

RESULTS 

The prospects of the global economy are still under the influence of military, energy and logistic flows, and the inflation rates are highly affecting the operations in all business segments. In our case, these imposed unforeseen expenditures, besides the strictly regulated prices of pharmaceutical products, in which case amendments are not allowed. In such challenging times, we increased the level of precaution, employing extraordinary vigilance in all levels of operational management. 

Besides all difficulties in the everyday operations, Alkaloid managed to generate positive financial results in its operations, surpassing the planned: 

We achieved total consolidated sales of MKD 16.512.977.886 representing 16% growth, and our consolidated net profit amounted to MKD 1.576.864.006, representing growth of 8% compared to 2022. 

31% of the sales were effectuated in the domestic market, whereas 69% were exports, out of which: 28% were intended for the SEE markets, 22% for the Western European markets, 17% for Eastern and 1% were for the remaining markets. Highest growths were registered in the Western European markets (25%) and Eastern Europe (growth of 23%). I would hereby point the example of Romania, where we placed EUR 10.3 million, which represents growth of 71% compared to 2022, when we opened our subsidiary in Bucharest, which decision for our own entity and team in that market was proven correct. 

Out of 90% of the total consolidated sales were effectuated by the Pharmaceuticals segment, whereas 10% belonged to the Chemicals, Cosmetics and Botanicals segment.

STOCK EXCHANGE OPERATIONS

With approximately 5500 shareholders, Alkaloid is a company with the largest number of individual shareholders at the Macedonian Stock Exchange. The shares of Alkaloid are among the three top trades and most liquid shares on the Macedonian stock exchange market.

Alkaloid AD Skopje in the regular stock exchange operations participated with traded MKD 513.5 million, which is 18.67% of the total turnover recorded on the first official market of the Stock Exchange in 2023. The share price of Alkaloid AD Skopje ranged from MKD 17,199 to MKD 18,500 with an average of MKD 17.781,93. The market capitalization of Alkaloid AD Skopje at the end of 2023 was MKD 25.985.569.606.

In 2023, for 11th time, the Macedonian Stock Exchange awarded Alkaloid with the prestigious award for Most Transparently Listed Joint Stock Company. In its portfolio, Alkaloid included another award – Stock of the Year for 2023 based on a public poll organized by the MSE and the Faktor internet platform.

INVESTMENTS AND UNDERTAKINGS

Under specific circumstances, in 2023 we continued our investment ventures amounting to MKD 1.741.562.000 allocated for increase and diversification of the production capacities. 

In the part of investments, I would highlight our mega investment project Tablet department 2.0. completed in the last quarter of 2023, which should enable double increase in the capacity of production of solid dosage forms: tablets, film coated tablets, capsules and bilayer tablets, introduced as production technology in our country for the first time. Alkaloid has two business models: business to customer, including our own portfolio and business to business including an out-license program. It was clear that having larger volumes and economy of scale, with less batch analysis, would be more competitive. 

Being a primarily generic company, our goal is to differentiate with added value products. Our first innovation product, for which the company was granted an international patent for value added medicine (VAM) – the liquid omeprazole, emphasizes Alkaloid’s dedication to extraordinary achievements in the sphere of pharmaceuticals, thus representing a novelty in generic drugs production through innovation, market differentiation and treatment of specific group of patients. 

We opened three new subsidiaries: ALKALOID SEE Ltd. Belgrade - third subsidiary of the company in the Serbian market; ALKALOID PHARMA INTERNATIONAL doo Zagreb, second subsidiary in Croatia and eighth established in an EU member country and ALKALOID KAZAHSTAN LLC., based in Almaty, our first subsidiary in Asia. 

In the service of quality education and creation of future healthcare professionals, we increased the number of high school and university students included in the current dual education and internship programs, and the Foundation Trajche Mukaetov continued its program activities. Up to date, the number of scholarship recipients was 659, and based on scholarships and one-off premiums to valedictorians in medicine and pharmacy, Alkaloid invested approximately MKD 132 million through the Foundation. 

In the spirit of corporate social responsibility was also the jubilee of our leading child cosmetics brand Becutan. On the occasion of celebrating its 45th anniversary, the company donated nearly MKD 2 million to the Macedonian branch of the international fostering organization SOS Children’s Village.

PROSPECTS

On the threshold of the third millennium, when technology and artificial intelligence are easily accessible, we all learned to value more human potentials. Human resources were always in the center of Alkaloid’s attention. Our imperative is to foster an environment where people would be satisfied and invest their potentials into mutual success. We inherited foundation of a successful story from the past generation and passed that story globally, working dedicatedly and creating for the generations to come. With our continuously transparent and ethical operation, we will continue our endeavors for sustainable growth.