Latvian pharmaceutical distributor AS Recipe Plus generated a revenue of €305.8 million and contributed €22.78 million in state taxes last year, operating within a challenging market shaped by international supply chain fluctuations and regulatory changes, according to reports from db.lv.
The Bottom Line
- Revenue and Tax Contributions: The company recorded €305.8 million in turnover and paid €22.78 million to the state budget.
- Regulatory Pressures: A fixed €0.50 prescription drug markup introduced on January 1, 2025, compressed profit margins and contributed to a loss for the 2025 financial year.
- Capital Investment: The firm is committing €20 million toward a new automated logistics center in Riga, slated for completion in Q2 2027.
Regulatory Pressures and 2025 Financial Strain
The operational landscape for domestic distributors shifted significantly following the implementation of a government-mandated pricing structure. Beginning January 1, 2025, a fixed €0.50 markup per prescription drug package was enacted regardless of the underlying product price. According to db.lv, this regulatory cap frequently failed to cover actual logistics and supply expenses, directly eroding profitability.
AS Recipe Plus leadership confirmed that these compounding pressures from the pricing reform, alongside ongoing geopolitical instability and supply chain volatility, resulted in the company closing the 2025 financial year in a net loss position. In response to these headwinds, management accelerated efforts to streamline internal operations and diversify revenue streams.
Portfolio Expansion and New Market Segments
To offset compressed margins on regulated medications, the enterprise widened its commercial scope. Over the course of the fiscal period, the company added more than 7,000 new products and onboarded 52 new suppliers to align with growing e-commerce and international trade demand.
Diversification efforts extended into professional cosmetics and a newly secured representation agreement for a major dermokosmētika brand across the Baltic states. These moves broaden the firm’s commercial footprint beyond traditional prescription pharmaceuticals.
Infrastructure Investment and the Riga Logistics Center
To secure long-term operational efficiency, AS Recipe Plus board chairman Mantas Jurkus announced a €20 million capital expenditure program directed at a new automated pharmaceutical and medical goods logistics center in Riga. Scheduled for commissioning in the second quarter of 2027, the facility represents one of the largest private infrastructure investments in the Latvian medical supply sector.
As a fully domestic capital enterprise, the firm intends for these investments to reinforce national distribution networks while positioning the company to compete with international market participants across the Baltics.
| Financial Metric | Reported Figure |
|---|---|
| Annual Revenue | €305.8 million |
| State Tax Contributions | €22.78 million |
| New Logistics Center Investment | €20 million |
| Total Active Product Portfolio | 17,000+ products |
| Active Client Base | 3,000+ institutions |
Operational Scale and Ongoing Distribution Continuity
Operating across Latvia, AS Recipe Plus maintains a product catalog exceeding 17,000 items, encompassing prescription medications, dietary supplements, medical devices, and skincare goods. The supply chain connects over 400 global manufacturers with more than 3,000 end-users, including pharmacies, hospitals, and social care facilities.
A workforce of nearly 300 specialists continues to maintain continuous medicine availability across the country on a seven-day-a-week schedule, balancing regulatory compliance with ongoing infrastructure upgrades.
