HealthPlus Pharmacy Group — Detailed Unit Economics
The detailed per-store unit economics — revenue build, margin structure, cost base, ramp and contribution — underpinning the network financial model.
Section 15 · Business Plan
Detailed Unit Economics
The detailed per-store unit economics — revenue build, margin structure, cost base, ramp and contribution — underpinning the network financial model.
15.1 Single Store Economic Model
The viability of the HealthPlus business plan rests on robust
single-store unit economics. The following model represents a mature
store (Month 18+) operating at steady-state performance:
| Single Store P&L (Monthly) | Amount (ZAR) | % of Revenue |
|---|---|---|
| Revenue | 1,700,000 | 100.0% |
| Dispensary Revenue | 459,000 | 27.0% |
| Front-Shop Retail | 816,000 | 48.0% |
| Private Label | 204,000 | 12.0% |
| Clinic Services | 136,000 | 8.0% |
| E-Commerce | 85,000 | 5.0% |
| Cost of Goods Sold | (1,054,000) | 62.0% |
| Gross Profit | 646,000 | 38.0% |
| Staff Costs | (238,000) | 14.0% |
| Occupancy (Rent + Utilities) | (153,000) | 9.0% |
| Store Marketing | (34,000) | 2.0% |
| Consumables & Supplies | (17,000) | 1.0% |
| Insurance & Security | (12,000) | 0.7% |
| Maintenance & Repairs | (8,500) | 0.5% |
| Total Store Operating Costs | (462,500) | 27.2% |
| Store-Level EBITDA | 183,500 | 10.8% |
| Less: Allocated Corporate Overhead | (51,000) | 3.0% |
| Store Contribution | 132,500 | 7.8% |
15.2 Revenue Build-Up per Store
Revenue per store follows a predictable ramp-up curve based on
industry benchmarks and the experience of comparable pharmacy
openings:
| Month Post-Opening | Monthly Revenue (ZAR) | % of Steady State | Key Driver |
|---|---|---|---|
| Month 1 | 350,000 | 21% | Grand opening promotion; walk-in traffic |
| Month 3 | 650,000 | 38% | Chronic prescription build-up; repeat visits |
| Month 6 | 950,000 | 56% | Medical scheme registrations; loyalty sign-ups |
| Month 9 | 1,200,000 | 71% | Word-of-mouth referrals; clinic utilisation growing |
| Month 12 | 1,450,000 | 85% | Established patient base; front-shop habits formed |
| Month 15 | 1,600,000 | 94% | Private label adoption; e-commerce orders increasing |
| Month 18+ | 1,700,000 | 100% | Steady state; growth driven by CPI and same-store gains |
15.3 Customer Lifetime Value Analysis
Understanding customer lifetime value (CLV) is essential for
calibrating customer acquisition spending and evaluating marketing
channel efficiency:
| Customer Segment | Avg. Monthly Spend | Visit Frequency | Avg. Tenure | Est. CLV |
|---|---|---|---|---|
| Medical Scheme (Chronic) | R2,800 | Monthly | 7+ years | R235,200 |
| Medical Scheme (Acute) | R850 | 4x per year | 5 years | R17,000 |
| Cash-Pay Health Conscious | R600 | 2x per month | 4 years | R57,600 |
| Cash-Pay Walk-In | R180 | 6x per year | 3 years | R3,240 |
| E-Commerce Only | R450 | Monthly | 3 years | R16,200 |
| Blended Average | R720 | 1.5x per month | 4.5 years | R38,880 |
With a blended customer acquisition cost (CAC) of ZAR 35–45, the
CLV:CAC ratio exceeds 800:1 for chronic medication patients and averages
approximately 100:1 across all segments, confirming the efficiency and
sustainability of the customer acquisition strategy.
15.4 Working Capital Cycle
Effective working capital management is critical to pharmacy retail
profitability. The HealthPlus working capital cycle is modelled as
follows:
| Working Capital Component | Days | Benchmark | Management Strategy |
|---|---|---|---|
| Inventory Days (Stock on Hand) | 55–65 | Clicks: ~55 days | Automated replenishment; ABC analysis; dead stock clearance protocols |
| Debtor Days (Medical Scheme Claims) | 21–28 | Industry: 25–30 | Electronic claiming; daily submission; follow-up on rejections |
| Creditor Days (Supplier Terms) | 30–45 | Industry: 30–40 | Negotiate extended terms with volume commitments; prompt payment discounts |
| Net Working Capital Cycle | 35–50 days | Industry: 30–45 | Target reduction to 30–35 days by Year 3 through distribution centre efficiencies |
The working capital requirement per store at steady state is
approximately ZAR 2.5–3.5 million, comprising inventory holdings,
medical scheme receivables, and a cash float for daily operations.
Efficient working capital management directly impacts free cash flow
generation and reduces the external funding requirement for
expansion.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of HealthPlus Pharmacy Group (Pty) Ltd.