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Africa Day Conference
Wirtschaftskammer Osterreich
Wien, Vienna
Wednesday 6 November, 2019
Doing Business in Africa – A Case Study On HealthPlus Limited
Keynote Speaker: O. A. (Bukky) George – Founder & CEO, HealthPlus Limited
Greetings from HealthPlus Lagos, Nigeria
Outline
Misconceptions about Africa
Quick Facts About Africa
Business Opportunities in Africa
Challenges with Doing Business in Africa
The HealthPlus Story
Misconceptions About Africa
Africa is a country
Africa is a jungle
All Africans are dark-skinned
Africa is a continent full of corruption,
poverty and war
Quick Facts About Africa
Africa is the second largest continent in the world, both in size and population with 54 countriesThe land area exceeds China, USA and Europe combinedThe continent is home to 1.2 billion people, who speak over 1000 different languagesThere is a huge diversity in income levels, resource endowment, infrastructure development, educational attainment and business sophisticationAfrica is the second most attractive investment destination in the world behind AsiaThe continent is one of the most integrated regions in the world, ranking behind only Europe and Southeast Asia for economic integration (reducing/eliminating trade barriers)400+ companies in Africa earn annual revenues of $1 billion or more20 years from now, Africa’s GDP is projected to be among the fastest growing in the worldAfrica is one of the world’s best kept secrets
Business Opportunities in AfricaThe instinct of most business people is to underestimate Africa’s size or potential as a market and overestimate the challenges of doing business in Africa
Global leaders who misunderstand Africa run the risk of missing out on one of 21st century’s great growth opportunities
If you are a business or an entrepreneur looking for growth and frontier markets, then Africa has what you are looking for
Across the continent, national and regional economies are accelerating their growth and attracting the attention of foreign investors. This change is driven by a number of factors:
• More democratic and accountable government• Economic policies that facilitates international trade• Innovative information and communication technologies• A growing middle-class with a taste for modern consumer goods
With the backing of international communities, more African Governments are embracing the right reforms, building the right institutions & the right policy choices. These include diversifying their economies away from oil & gas and mining to Agriculture, retail and other small/medium-sized ventures which create significant jobs
The ease of doing business in Africa is improving. Nigeria for example moved up 15 places from 146th position to 131st in the latest “World Bank’s Doing Business 2020 Index”
Business Opportunities in Africa – Priority Areas
Infrastructure
Agriculture
Education
Healthcare
IT services
Fintech
Consumer goods and services
Retail
Fashion
Entertainment & media
Challenges with Doing Business in Africa
It is worth mentioning that as much as there are untapped opportunities in
Africa to be harnessed by discerning foreign businesses, there are certain
challenges also confronting the continent’s business climate. Here are a few
of them:
• Political instability
• Economic volatility
• Corruption
• Business risks
• Infrastructural gap
• Inconsistent policies of government
• Insecurity
The HealthPlus Story
Bukky George - Early Years
9th child of 33
A product of my• childhood and upbringing• passion for learning• quest for excellence
Inquisitive with a general competitive streak
Determination not to accept the status quo which sowed the earlyseeds for the audacious vision of HealthPlus
Bukky George - Education
1992 – Bachelor of Pharmacy, University of Lagos• Graduated with the best result across six disciplines: Pharmacy,
Medicine, Dentistry, Pharmacology, Physiology and Physiotherapy
2000 – MBA (Marketing), University of Lagos
2005 – Owner Management Program (OMP), Lagos BusinessSchool
2017 – Owner President Management (OPM) Program,Harvard Business School
2018 – Women on Boards, IE Business School Madrid
Bukky George - Work Experience
1992 – 1993: Intern Pharmacist, Lagos University Teaching Hospital
1992 – 1993: Locum, Onyx Pharmacy, GRA Ikeja, Lagos
1993 – 1994: National Youth Service Corp, Smithkline Beecham PLC, Nigeria(Experience in production, quality control and sales & marketing)
1995 – 1996: Medical Representative, May & Baker PLC, Nigeria
1996 – 1999: Assistant Manager Sales, Smithkline Beecham PLC, Nigeria
2002 – 2003: Pre-registration Trainee, John Bell & Croyden Pharmacy, UK
2003 – 2004: Pharmacist Manager, Lloyds Pharmacy, UK
1999 – till date: Founder & CEO, HealthPlus Limited Nigeria
Bukky George – Professional Memberships & Awards
Memberships• Fellow, Pharmaceutical Society of Nigeria • Member, Royal Pharmaceutical Society UK• Endeavor Entrepreneur • Member, Young Presidents’ Organization (YPO)• Chairman, Sanofi Pharmacy Advisory Board• Executive Council Member, Women In Management, Business and Public
Service (WIMBIZ)
Awards• YouWin! Award of Excellence in Entrepreneurship, 2019• Havard Business School Association of Nigeria (HBSAN) 2015 Leadership
Awards for the Entrepreneurship Category• 2015 W Entrepreneur of the Year (Access Bank)• Ernst & Young Entrepreneur of the Year (Finalist) 2015• Business Woman of the Year Category of the CNBC (Finalist) 2014 All African
Business Leaders Awards
The HealthPlus Dream
Incorporated in 1996, commenced operations as a retail pharmacy in 1999
HealthPlus was birthed to bridge the huge disconnect between the theory and practice of pharmacy in Nigeria.
The initial goal was to ethically and profitably run a single 18sqmstore in GRA Ikeja – a middle/upper class suburb in Lagos
From inception, HealthPlus distinguished itself as the pharmacyof choice through the provision of quality medicines, healthcareproducts and value adding pharmacy services by certified andwell-informed healthcare professionals in a friendly and hygienicenvironment
HealthPlus Corporate Philosophy
Excellence
• Attention to Detail
• Professionalism
• Process-Driven
• Result-Oriented
To help people achieve optimum health and vitality, while delivering superior value to stakeholders
To be Africa’s #1 for pharmacy, wellness and beauty
Customer Satisfaction
Our People Innovation PartnershipIntegrity
• CustomerFirst
• FrontlineFocus
• Talent• Teamwork• Respect• Leadership• Continuou
s Learning
• Courage• Open &
Honest• Ownership
• Agility• Creativity
• Collaboration• Community
Our Vision
Our Mission
Our Core Values
HealthPlus Products
Our Products
• OTC & prescription medicines (branded and
generics)
• Nutritional supplements
• Natural remedies
• Home medical equipment
• Mobility aids
• Mother & baby and personal care products
HealthPlus Services
Our Services• Full Prescription Dispensing Service• Pill Box Service• Minor Ailments Service• Medicines Use Review• Healthy Heart Check• Blood Pressure Check• Diabetes Screening• Cholesterol Check• Weight Management Service• Asthma Support Service• Skin & Hair Analysis Service• Stop Smoking Service• Family Planning• Sexual Health Service• Travel Health Service• Confidential Help/Advice and Lifestyle issues
CasaBella Products
• Skincare
• Hair
• Hair-care products
• Make-up and accessories
HealthPlus - Milestone Since InceptionStrictly Private and Confidential
1996 - 2003 2006 – Till date
2003
The pioneer branch moved to a bigger location still in
Ikeja
1999
Starts operations in April, 1999 as HealthPlus
Pharmacy & Health Shop at Kiddiesland Mall, Ikeja
2008
Launch of CasaBella International and obtaining of
exclusive franchise for the distribution of Revlon
products
1996
HealthPlus is incorporated
2007
Creation of the Head Office and Centralization of Operations in Lekki,
2006
Rebranded to become HealthPlus
Integrative Pharmacy, Nigeria's
1st integrative pharmacy
Commencement and Positioning Expansion and Brand Development
1999 - 2001
Emerged as the Pharmacy of Choice in GRA Ikeja through excellence in pharmacy and
customer service
2008
Added 3 new branches –Ajah, International Airport,
Ikeja and MMA2, Ikeja
2006
Launched a branch at Palms Shopping Center
2017
Engaged Mckinsey & Co. to develop a five-year
strategic plan
2010
First branch of CasaBella opens at the Palms
Shopping Mall, Lagos
2015
Further expansion into prime locations in Lagos as well as
Abuja, Enugu and Port Harcourt
Milestones achieved since inception
1
2018
Partnership with PE manager, Alta Semper.
Currently has 49 HealthPlusbranches and 29
CasaBella branches
Across 11 states and FCT
2019Launched
E-Commerce
HealthPlus Value Proposition - The ProblemSubstandard and falsified drugs proliferate retail outlets, creating a huge life-
threatening problem for consumers and medical practitioners. In Nigeria,
reliable access to safe, affordable, high-quality and effective medicines is, for
most people, simply not something that is taken for granted
Reasons for Poor Access to Safe Medicines;
• Significant fragmentation of pharmacy outlets; the landscape is
proliferated by numerous unlicensed drugstores.
• Wholesale/manufacturer supply channels are infiltrated by many
unlicensed charlatans and an inflow of low-quality, unregistered imports.
• Among the licensed pharma retail operators, operating standards and
service quality vary significantly and can often be both poor and
inconsistent.
HealthPlus Value Proposition - The Problem (cont’d)
170,000 children under 5 die every year in Sub-Saharan Africa because of
substandard or fake antibiotics and 120,000 from similarly low quality
antimalarial drugs (WHO, 2013).
3,426 licensed retail pharmacies in Nigeria in 2015 (2.8 per 100K people)
(Pharmacists Council of Nigeria, 2016).
11,837 licensed pharmacists in Nigeria in 2015 (6.2 per 100K people)
(Pharmacists Council of Nigeria, 2016).
200,000 unregistered drugstores in Nigeria (The Lancet, 2017).
HealthPlus Value Proposition - The Solution
We strictly protect the integrity of our supply
chain
We adopt UK pharmacy regulatory standards
internally
HealthPlus provides consumers with safe,
affordable and convenient access to medicines
and related healthcare products
HealthPlus is the largest employer of
pharmacists in Nigeria
We have become a household name in Nigeria
and beyond
HealthPlus Value Proposition - The Solution (cont’d)
HealthPlus delivers a modern, professional in-store
experience, similar to major retailers like Boots and
Clicks. Its stores are differentiated in the market in
three ways:
• First, it is an integrative healthcare retailer, selling
strictly medicines and healthcare products
• Second, HealthPlus guarantees the presence of a
qualified, knowledgeable pharmacist in-store at all
times (required by law but not commonly complied
with)
• Finally, the company provides complementary basic
health screening services and advice in each store
HealthPlus Value Proposition - The Solution (cont’d)
Operating as a complementary but distinctly
separate offering, typically located side-by-side with
HealthPlus, CasaBella offers the same convenient
access to trusted, high-quality beauty and grooming
lines without compromising HealthPlus’ brand.
Similarly, CasaBella stores are staffed by trained
beauty advisers.
HealthPlus Value Proposition - Product & Pricing
HealthPlus and CasaBella both sell a mix of local and international brands.
About 60% of the group’s products are sourced locally and 40% are
imported.
HealthPlus - Competitive Advantages
Early-mover advantage: In a massively underserved market that is also projected to grow
significantly from a combination of demographics, strengthening of the health insurance market
and stronger regulatory oversight, HealthPlus is the clear market leader and growing aggressively.
Trusted, highly-visible brands: Both concepts (HealthPlus and CasaBella) are well located in key
middle class residential and commercial sites. Customers rate trust highly as a key reason for their
patronage.
Strong partnerships with trusted suppliers: Stores offer a broad selection of leading local and
international brands. HealthPlus has longstanding relationships with key suppliers developed over
its 19-year trading history.
HealthPlus - Team Structure
Corporate OrganogramC-Suites
HODs
Managers, Officers, Assistants
Key roles to be fi l led
Vacant
Chief Adminstration Officer
Board
Chief Financial Officer
Head, Internal Audit & Risk Management
Head, Retail Operations
(Pharmacy)
Head, Pharmacy Services
Head, HRHead, Facilities & Admin. Services Head, IT
Head, Marketing %Communication
Head, BusinessDevelopment
Head, Warehouse & Logistics
Head, Purchasing & Category
Management Financial Controller
Management Accounting
Financial Reporting
Treasury Accounting
HR Business Partner
HR Operations
Performance Management
Facility Management
Corporate Services
Admin
Security
IT Projects
IT Operations
Regional Retail Operations Managers
(Pharmacy)
Area Managers
Branch Managers
Pharmacists
Regulatory & Compliance
Pharmacy Services & Health Promotions
School of Pharmacy
Brand Management & Communication
Category Marketing
Loyalty Program
Logistics
Warehouse
Transport Management
Medicines & Healthcare
Natural Health
Beauty & Personal Care
Non-Inventory
Internal Audit
Internal Control
Risk Management
Legal Strategy & Planning
Talent Management
Fleet Management
HCAs
Merchandising
Head, Sales
Sales
Head, Digital Marketing & E-
Commerce
DigitalMarketing
Technology
Operations
Mothers & Babies
Head, Retail Operations (Beauty)
Regional Retail Operations Managers
(Beauty)
Area Managers
Branch Managers
Beauty Advisors
Merchandising
Retail Intelligence
Project Accounting
CEO
Head, Projects
Chief RetailOperations Officer
Customer Service
Chief OperationsOfficer
Service Delivery
Chief Commercial Officer
Acquisition & Partnership
Private Label
Non-Retail
Designs &Projects
Property Acqusition &
Leasing
Business Process
Head, CorporateTransformation Head, Custer Service
Board of Directors
Dr. Ayo SalamiChairman
Bukky GeorgeFounder & CEO
Afsane JethaNon-Executive Director
Zachary FondNon-Executive Director
Deji AkinyanjuNon-Executive Director
Management Team
Bukky GeorgeFounder & CEO
Foluke AkinniranyeChief Retail Operations Officer
Deji FaniyanCorporate Transformation
Dimeji OlajitanInternal Audit & Risk Management
Tolu OniLegal
Ernest EguasaChief Financial Officer
Tunde AkiodeChief Commercial Officer
Sylvester AdewuyiInformation Technology
Dupe AdebiyiPharmacy Services
Onomen Ayodele-OlugbogiRetail Operations
Eric AmaefuleProcurement & Category
Management
Moses MogboluMarketing & Communications
Matthew AremuWarehouse & Logistics
Dotun BabatundeDigital Marketing & E-Commerce
Babatunde AwofehaHuman Resources
Toyin ArifayanSchool of Pharmacy
Management Team (cont’d)
Pelumi TubiBusiness Development (HealthPlus)
Elizabeth EnajerohBusiness Development (CasaBella)
Kolade Hassan Projects
Martin AwogbadeFacilities & Admin. Services
Management Team (cont’d)
The Alta Semper Investment
Challenges Pre Equity Raise
• Inadequate working capital
• High interest bank loans
• Poor retail technology and infrastructure
• Subpar Distribution Centre
• Key talent vacancies (scarce retail expertise)
• Sub-optimal inventory management
The Alta Semper Fit
• Focus on Africa
• Focus on Healthcare sector
• Ability to invest patient & flexible capital
The Alta Semper Investment (cont’d)
The Alta Semper Investment
• US$18 million growth capital
• To capture the pent-up demand for high-quality yet affordable
healthcare and beauty supplies
• To enable HealthPlus continue to expand its store footprint
• To allow the company continue to invest in market leading human
talent
• To develop a central distribution centre
• Selectively explore private label and e-commerce initiatives
HealthPlus Today
90 store footprint across 11 states
850 employees
GP of 42% (one of the highest in the world)
Double digit growth annually
A household name with strong brand equity
Solid reputation for providing access to quality medicines, healthcare &
beauty products backed with value-added services
Contributing our quota to the achievement of universal healthcare
coverage and to increasing life expectancy of Nigerians
Numerous awards for excellence in entrepreneurship, healthcare and
community service
Better positioned to achieve our audacious vision of being Africa’s #1 for
pharmacy, wellness and beauty
Future Strategy
In 5 years, the HealthPlus Group will become #1 Nigerian retailer
for health and beauty, performing in line with global peers (e.g.
Clicks Pharmacy SA, Sally Beauty USA)
• Revenues > N30B
• Number of annual instore transactions: 4.25million
• Number of stores (3 different formats): 300
• A network of independent pharmacies with a banner group
(cooperative): 500
• Market share: 15 – 20% (in formal markets)
• Growth: 17% (5 year growth rates)
• EBITDA margins: 10 – 15%
• Structure: diversified retailer (products & services, instore and online,
wholesale group)
Future Strategy (cont’d)
In 10 years, the HealthPlus Group will be setup with
capabilities to expand into the rest of Africa
• Revenues > N50B
• Number of annual instore transactions: 7.5million
• Number of stores (3 different formats): >400
• A network of independent pharmacies with a banner group
(cooperative): 1000
Enhancing the security of drug supply chains in Nigeria
Increasing access to quality healthcare and job creation
Providing opportunities for women
Employee training & development
Creating Meaningful Developmental and Social Impact
McKinsey & Company Sources
References
Thank You!
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