GHG.L Regulatory News (GHG)

  London, 4 October 2019 

GHG pharmacy and distribution business signs a franchise agreement

with international cosmetics brand The Body Shop

Georgia Healthcare Group PLC ("GHG" or the "Group") announces that its pharmacy and distribution business has signed a franchise agreement (the "Agreement") with The Body Shop International Limited ("The Body Shop"). The Body Shop, is a leading British cosmetics, skin care and perfume company, having a range of 1,000 products which it sells in about 3000 owned and franchised stores internationally in more than 70 countries.

According to the Agreement, GHG pharmacy and distribution business has obtained the right to operate The Body Shop in Georgia for an initial term of 10 years. GHG will benefit from the knowledge, skills and experience of The Body Shop, conforming to its high standards and uniform specifications.

In the first year of operations GHG will develop up to three standalone flagship The Body Shop stores in the capital and large cities, and will also operate a shop in shop model, developing The Body Shop stands in its high-end retail pharmacy chain - GPC. We are planning to operate the shop in shop model in c.50 GPC pharmacies, gradually increasing the number to c.100 over the next few years. The Body Shop's worldwide well-established brand will further strengthen the GPC brand and increase its awareness.

"Today I am very pleased to announce a new milestone for our pharmacy and distribution business. Entering the beauty retail market is further progress of the Group towards its recently declared strategy to develop new growth opportunities and shape new markets. Adding The Body Shop brand to our portfolio will upgrade our range of personal care products and further contribute to our business growth. Partnering with this internationally recognised brand, capitalising on its knowledge and experience, will increase our pharmacy and distribution business brand awareness and the number of its loyal customers. I want to thank the members of both teams, who have worked very hard on this project, which we believe will be extremely successful for the Group." - commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.

"We are excited to bring The Body Shop brand to Georgia with GHG, a strong local player with extensive market expertise. For over 43 years, The Body Shop has believed that business has the power to make the right kind of difference in the world, and we are happy to enable the Georgian people to be part of this great heritage and collective. With our new franchisee GHG leading the way, we are confident that our brand philosophy will resonate well with future customers in Georgia" commented Qasar Qayuum, Executive MD for EMEA The Body Shop.

About The Body Shop

Founded in 1976 in Brighton, England, by Dame Anita Roddick, The Body Shop is a global beauty brand. The Body Shop seeks to make a positive difference in the world by offering high-quality, naturally inspired skincare, body care, hair care and make-up produced ethically and sustainably. Having pioneered the philosophy that business can be a force for good, this ethos is still the brand's driving force. The Body Shop spans about 3,000 retail locations in more than 70 countries. Along with Aesop and Natura, The Body Shop is part of Natura &Co, a global, multi-channel and multi-brand cosmetics group that is committed to generating positive economic, social and environmental impact.

Name of authorised official of issuer responsible for making notification:

Ketevan Kalandarishvili, Head of Investor Relations

About Georgia Healthcare Group PLC

Georgia Healthcare Group PLC is a UK incorporated holding company of the largest healthcare services provider in the fast-growing, predominantly privately-owned, Georgian healthcare services market. GHG's leadership position is underpinned by offering the most comprehensive range of inpatient and outpatient services targeting the mass market segment through its vertically integrated network of 18 hospitals and 34 clinics. GHG is the single largest market participant, accounting for 24% of total hospital bed capacity in the country, as of 30 June 2019. GHG is also the largest pharmaceuticals retailer and wholesaler in Georgia, with approximately 30% market share by revenue. GHG is the second largest provider of medical insurance in Georgia with a 31% market share based on net insurance premiums earned and approximately c.230,000 insurance customers. GHG employed a total of c.16,200 people as at 30 June 2019, including c.3,600 physicians and 3,000 pharmacists.

For further information, please visit ghg.com.ge or contact: 

This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities