The Pharmacy Industry in Strand: Current Status and Future Prospects

The pharmacy industry in Strand has shown stability and a certain degree of growth over the past few years. There are three pharmacies registered in the municipality, located in two urban areas: Jørpeland and Tau. Overall, the industry has experienced variations in sales and number of employees, but has recently achieved a stable level. With an average EBITDA margin of 6-7% and high gross profits, the figures indicate a relatively healthy industry structure. There are no registered bankruptcies in the industry, which suggests good financial health among the local businesses.

Economic Trends

The figures show that sales in the pharmacy industry in Strand had a marked decline in 2017 (-60.5%), but have since experienced strong growth from 2018 onwards. The highest sales were achieved in 2022 with NOK 68.1 million, followed by a decline in 2023 and a rise again in 2025. The number of employees has been more stable, with an average level of approximately 24-26 employees over the past five years. The most significant increase in the number of employees was recorded in 2022 (+33.3%), while there have been small adjustments in 2023 and 2024.

Table: Sales and Employees per Year

Financial Health

The industry has a relatively high gross profit (31,635% in Jørpeland and 31,684% in Tau) and a stable operating margin of approximately 5%. The EBITDA margin is at 6-7%, which indicates that the businesses have good control over costs and revenues.

Registered Companies

There are three pharmacies registered in Strand, all with the legal form AS. They are distributed as follows:

1. Apotek 1 Tau – Torgvegen 2, Tau (12 employees)
2. Apotek 1 Strand – Rådhusgaten 14, Jørpeland (11 employees)

Legal Form

All companies in the industry have chosen the legal form AS, which indicates a standardized structure in the sector. No companies with other legal forms are registered in the municipality.

Distribution of Businesses

The pharmacy industry in Strand is distributed across two urban areas: Jørpeland and Tau. Jørpeland has two pharmacies with a total of 16 employees and an operating income of NOK 31.6 million. Tau has one pharmacy with 12 employees and an operating income of NOK 19.6 million. The distribution shows that Jørpeland is the most active area in the municipality for this industry.

Table: Distribution by Urban Area

Bankruptcies and Financial Viability

There are no registered bankruptcies in the pharmacy industry in Strand over the past few years. All companies have been financially viable, which indicates a stable industry structure. No companies have been in bankruptcy, and all have maintained their operations.

Financial Viability

All companies have a positive operating profit and high gross profits. The EBITDA margin is at 6-7%, which shows that the businesses have good control over costs and revenues. There are no signs of financial problems in the industry.

Future Prospects

Based on the past few years, the figures indicate a stable and growth-oriented industry in Strand. Sales have increased since 2022, and the number of employees has remained stable. With a high EBITDA margin and good financial viability, there are good prospects for future investments and development in the sector.

Opportunities for Entrepreneurs

For entrepreneurs considering starting a pharmacy in Strand, the figures indicate a competitive market. However, it is important to consider the existing competition and the high entry costs associated with establishing a pharmacy business. It is also important to evaluate location factors, as Jørpeland appears to be the most active area in the municipality for this industry.

The pharmacy industry in Strand is showing stability and good financial health. With three companies and growth in sales and number of employees over the past few years, there are good prospects for future development. However, it is important to consider the competition and the high entry costs associated with establishing a pharmacy business. For entrepreneurs considering starting a pharmacy in the municipality, SmartGrunder can help find suitable locations and assess operational conditions.