Robinsons takes majority control of Generics Pharmacy

MANILA, Philippines – Robinsons Retail Group, the retailing arm of the Gokongwei Group, has acquired 51 percent of The Generics Pharmacy (TGP), a family-owned generics drugstore chain with over 1,800 stores.

The move widens the Gokongwei Group’s footprint in the drugstore business after acquiring South Star Drug in 2012.

With the combined network of TGP and South Star Drug, Robinson Retail’s drugstore network will now grow to nearly 2,200 stores nationwide, the largest in terms of the total number of outlets in the country.

TGP was founded by the Liuson family, which has been in the pharmaceutical business since 1959, initially as importer and wholesaler under the name Pacific Pharma.

 In 1983, Pacific Pharma shifted its focus to generic medicines after realizing the serious need of most Filipinos for quality medicine at affordable prices.

The family ventured into retail and set up TGP in 2001 and expanded this in 2007 to bring affordable medicines and healthcare to far-flung areas of the country through the franchising business model.

Robina Gokongwei-Pe, president and COO of Robinsons Retail, said the company would further grow TGP.

“We are very excited to partner with TGP. This is because TGP strongly believes in its vision to offer quality products at very affordable prices and in convenient locations. It is an honor to continue the company’s legacy and to further grow the business,” Gokongwei-Pe said.

TGP chairman and founder Benjamin Liuson, for his part, said: “We have been a firm believer that a Filipino deserves nothing less for less cost. Thus, we have been true to our mission of helping address the health needs of every Filipino by providing a complete range of safe, quality and cost-effective generic medicines and healthcare products and services.”

In the first quarter of the year, Robinsons Retail posted a net income of P785 million, or almost the same level as the previous year’s P781 million.  This was attributed to P73 million in unrealized foreign exchange losses incurred from US dollar denominated available-for-sale investments.

Consolidated net sales rose 15 percent to P22.7 billion on the back of robust same store sales growth of nine percent and the sales contribution of new stores.

 As of end-March 2016, Robinsons Retail operated a total of 1,514 stores or an additional 158 stores and expanded its total gross floor area by 7.8 percent year on year to 967,000 square meters.