Montenegro’s Pharmaceutical and Medical Equipment Firms Report €55.7 Million in Three-Year Profits

Eight companies operating in the medicines and medical equipment sector generated €55.7 million in net profit over three years, while their accumulated retained earnings exceeded €70 million at the end of 2025, according to the NGO Action for Social Justice

Eight companies involved in the procurement of medicines and medical equipment or the provision of related services in Montenegro recorded a combined €55.7 million in net profit over the past three years, according to data released by Action for Social Justice (ASP). Their retained earnings exceeded €70 million at the end of last year, while the companies employed a total of 582 people. The organisation says the figures point to high profitability in a sector that directly affects the cost of healthcare for citizens.

ASP noted that net profit margins varied considerably among the companies in 2025, ranging from below 5% to around 7% and 8%, while some firms reported margins of 18% and as high as 34%. The eight companies paid a combined €8.5 million in corporate profit tax over the three-year period, while several distributed dividends totalling €15.5 million to their owners. ASP also highlighted one case in which the dividend attributable to last year’s business performance, after tax, would leave the owner with approximately €7,000 a day.

The organisation argued that public debate has focused periodically on reducing value-added tax on medicines, while giving insufficient attention to possible market concentration and monopolies in the sector. It also stressed that retained earnings can be held in cash, assets or receivables, and should not be interpreted solely as money available in company bank accounts. ASP drew parallels with the retail sector, where eight leading companies reportedly generated €132 million in net profit over the same three-year period, with retained earnings reaching €228 million at the end of 2025.

The findings come amid wider concerns about rising living costs and the risk of renewed inflation ahead of a planned wage-increase programme early next year. ASP cited consumer-price data showing that prices rose by 0.5% in September compared with August, averaged 3.7% higher in the first nine months of the year than in the same period of 2025, and stood 6.1% above December 2025 levels. The government has announced plans to limit retail margins on essential food products from the beginning of next year, while trade unions have called for the measure to take effect sooner and cover a wider range of goods and services.

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