With an almost two-decade presence in Egypt, Macro Group Pharmaceuticals is a pioneer and market-leader in the country’s cosmeceutical space. The company has steadily grown in size to lead the highly fragmented market in terms of sales by catering to multiple demographic segments with a well-developed portfolio of products diversified across 7 high-growth therapeutic areas within cosmeceuticals and 1 newly added therapeutic area under nutraceuticals.
Egypt’s large and rapidly growing population, rising wealth, increased urbanization, higher internet and smartphone penetration, and fast-growing private consumption levels have fueled local demand for premium, innovative cosmeceutical products. Macro Group leads Egypt’s dynamic cosmeceutical sector, commanding a market share of 31.4% in terms of sales in FY22 based on the therapeutic areas in which it operates, which is testament to its unique and innovative consumer-centric business model that has enabled the company to leverage its in-house market intelligence and innovation initiatives to continuously launch new products at attractive price points for customers in different demographic segments of the Egyptian population, all while enjoying nationwide geographical coverage through its robust sales capabilities and efficient distribution platforms.
Macro Group boasts a highly attractive portfolio of market leading brands across skin care, hair care, female care, anti-scar, oral care, antiseptics, and topical muscle relaxants, in addition to nutraceuticals, all therapeutic areas which have shown considerable growth in Egypt in recent years. As at year-end 2022, the company had the largest market share among cosmeceutical companies in Egypt in the skin care, hair care, oral care, female intimate care, and cosmeceutical antiseptics therapeutic areas, and the second-largest market share in the anti-scar therapeutic area. Macro Group has achieved its leading position in the Egyptian cosmeceuticals market through its innovative and attractive consumer-centric business model that has enabled it to leverage its in-house market intelligence and innovation initiatives to continuously launch new products at attractive price points for customers in different demographic segments of the Egyptian population, all while enjoying nationwide geographical coverage through its robust sales capabilities and efficient distribution platforms. The company plans to leverage its existing presence and brand equity to expand within the largest and fastest growing therapeutic areas across cosmeceutical and nutraceutical spaces.
Most of Macro Group’s products are manufactured in-house at its modern production facility in Badr City. The facility houses 10 state-of-the-art production lines alongside ancillary packaging machinery and is constructed in accordance with Good Manufacturing Practices (“GMP”) and Good Laboratory Practices (“GLP”). Despite double-digit top line growth year on year, the facility still operated at 86% utilization in FY22 , leaving ample room to accommodate growth without the requirement of any significant capital expenditure. The company’s production lines mainly employ equipment purchased locally or from Italian, American and Chinese manufacturers. Each production line operates based on clearly-defined internal guidelines which are executed and monitored by Macro Group’s trained personnel. The Company has successfully maintained a low CAPEX to sales ratio, which declined from 1.0% in 2021 to reach 0.7% in 2022.
Macro Group markets its products through a highly capable and incentivized salesforce of 515 employees, comprising a promotion team and a distribution team. With 85% of sales in 2020 estimated to be initially generated via prescriptions, the promotion team generates demand by engaging directly with a target network of physicians and pharmacies nationwide.
The company is also focused on growing its direct distribution channel and expanding its coverage to pharmacies and wholesalers, with an eye to increase its cost efficiency, improve its cash conversion cycle and provide the Company with a continuous stream of market intelligence which feeds into formulating the future pipeline. Most recently, to further promote its direct-to-consumer strategy, the Company launched “e-macro.com” in June 2021, a new e-commerce platform, to expand its customer base and reach. The platform makes products directly available to customers, with the aim of personalising their shopping experience.
The Company benefits from a strong, cohesive management team with extensive multinational experience in the pharmaceutical and cosmeceutical industries, including with the major international companies in both Egypt and abroad. Collectively, the members of the Company’s senior management team have over 200 years of experience gained at leading international companies such as Johnson & Johnson, Sanofi Aventis and Novartis and local and regional pharmaceutical companies such as Hikma, Tabuk Pharmaceutical, Takeda Pharmaceuticals and Pharco. The Company has achieved consistent top line growth since its inception, which is testament to its senior management’s ability to lead the Company and execute the Company’s strategies even through exceptional times in Egypt.