“Recipe Plus” Expanded Operations into New Product Categories in 2025

In 2025, adjusting to significant changes in the pharmaceutical market and prescription drug supply conditions, the Latvian pharmaceutical and medical goods supplier AS “Recipe Plus” expanded its product range with more than 7,000 new products, initiated cooperation with 52 new suppliers, and continued investing in operational efficiency and logistics infrastructure. The company's turnover last year reached 305.8 million euros, and it paid 22.78 million euros in taxes to the state budget.

The company's operations in 2025 were significantly impacted by both the geopolitical situation and fluctuations in international supply chains, as well as the drug pricing reform introduced on January 1, 2025. The new regulation establishes a fixed markup of €0.50 per package of prescription medicine regardless of its price. In practice, this markup often fails to cover the supply costs of these pharmaceuticals, creating a need to review the existing operational model and boost efficiency.

In response to market changes, “Recipe Plus” reviewed its internal processes, expanded its network of suppliers, and developed new business segments. Following the growth of e-commerce and international trade, the company's portfolio was expanded over the course of the year with more than 7,000 new products and 52 new suppliers. Simultaneously, the company launched the distribution of professional cosmetics and concluded a new representation agreement for a dermocosmetics brand in the Baltic states.

“As a result of the pricing reform, the supply of prescription medicines has become significantly more complex, as the fixed markup in many cases no longer covers actual logistics and delivery costs. In 2025, this severely impacted our profitability and accelerated the need to adapt the company's business model. This is also evident in our 2025 results, which we closed with a loss. However, even under these circumstances, our task is to maintain a stable drug supply throughout Latvia while building a sustainable operational model. Therefore, we have purposefully increased efficiency, expanded product categories, developed new business segments, and are investing 20 million euros in a new logistics center. This allows us to diversify revenues and strengthen the company's competitiveness without losing sight of our core mission—ensuring safe and uninterrupted access to medicines in Latvia,” notes Mantas Jurkus, Chairman of the Board at AS “Recipe Plus”.

He emphasizes that strengthening the company's competitiveness is taking place alongside substantial investments in Latvia's critical pharmaceutical supply infrastructure. “We are a 100% locally-owned company, which means that the

added value we generate is reinvested in Latvia—into critical medicine supply infrastructure, technologies, and drug availability. Our ambition is to compete with the largest international market players in terms of efficiency, technology, product range, and logistics, while simultaneously strengthening infrastructure that is strategically important to Latvia. The investment in the new logistics center is the next step toward ensuring the continuous availability of medicines and medical supplies nationwide in the long term, as well as expanding within the Baltics,” says Jurkus.

The most significant development project for “Recipe Plus” is the new automated logistics center for pharmaceuticals and medical goods in Riga, in which the company will invest 20 million euros. It represents one of the largest private investments in Latvia's pharmaceutical logistics infrastructure and will allow for increased warehouse capacity, automated handling of goods, and enhanced delivery efficiency and safety. The new center is scheduled to be commissioned in the second quarter of 2027.

AS "Recipe Plus" offers a range of more than 17,000 products (medicines, dietary supplements, medical goods, cosmetics, and other pharmaceutical products). The company collaborates with more than 400 manufacturers worldwide, delivering products daily to more than 3,000 clients—pharmacies, medical institutions, social care centers, and others. It employs nearly 300 specialists across various fields who ensure the continuity of medical and pharmaceutical supplies across Latvia seven days a week.