Success Story
Driving Profitability and Cash Flow in Pharmaceutical
Distribution
Client
A pharmaceutical distribution company with over ₱2 billion in annual revenue.
Challenge
Despite strong topline performance, the company faced persistent negative free cash flow and operational inefficiencies. Profit margins were thin, and capital was tied up in poorly optimized inventory, delayed collections, and broad product focus that diluted returns.
Our Solution
We deployed a cross-functional strategy rooted in finance transformation, data analytics, and marketing optimization. Key interventions included:
- Improving the cash conversion cycle by optimizing inventory purchases, renegotiating supplier terms, and tightening cash collection processes
- Doubling profit margins by rationalizing the product portfolio—prioritizing high-volume, high-margin SKUs and de-emphasizing low-impact categories
- Growing revenue by 20% annually since 2020 through strategic market research and refined go-to-market strategies.
- Positioning products to high-value customer segments, based on data-backed profiling of geographic and behavioral purchasing patterns.
- Digitizing marketing operations, building a strong omnichannel presence to reach both institutional and retail buyers efficiently.
Our approach combined process engineering with digital infrastructure design, allowing 50 remote employees to deliver enterprise-grade output.
The Impact
The results were transformative:
- Labor costs reduced by a factor of 10.
- Seamless operation of all major departments from the Philippines.
- 100% year-on-year revenue growth since 2022
- Over $12M in annual revenue driven by a compact, efficient team
- Industry-leading revenue-per-employee ratio in a traditionally high-overhead sector By redesigning their business model around efficiency, accountability, and data visibility, the company scaled faster—with fewer people, lower costs, and greater control.