CFO of Darnytsia Spoke at the Ukrainian CFO Forum About Alternative Budgeting and Forecasting Approaches, Which are a Powerful Basis for the Company's Forward Movement
During the last 4 years, Darnytsia Pharmaceutical Company has doubled its business and reached, according to the results of 2023, 15.8% of the market in physical terms and 5.5% in monetary terms. Every sixth package of medicines on the pharmacy shelves of Ukraine is manufactured by Darnytsia. The company is increasing its potential also through the development of new medicines. Owing to the work of the R&D team, consumers received more than 80 new medicines.
Hanna Demchenko, CFO of Darnytsia Pharmaceutical Company, told about this during the Ukrainian CFO Forum, which took place on 24-25 October in Kyiv.
To achieve such results, Darnytsia focuses, among other things, on changing the approach to business management, with special emphasis on the role of the finance branch.
Thus, Hanna shared the experience of implementing the company's financial strategy, introducing the concept of financial business partnership as a strategic functionality, the main role of which is the creation of added value, transformation of procurement functions and processes.
She also told about the experience of transitioning to the powerful technological platform SAP S/4 Hana and the new SAC financial planning and budgeting system. They became the main factors in the introduction of the concept of the tree of assessment of key performance indicators (KPI) and the introduction of an alternative method of budgeting and forecasting, namely ZBB (Zero Based Budgeting).
Hanna Demchenko detailed the advantages of ZBB and the practical aspects of working with this budgeting model, explaining, in particular, why the company chooses the "Do more with less" business planning strategy.
"Do more with less is a winning strategy. It is most effective in highly competitive markets. Its competent application contributes to the growth of production volumes, ensuring competitive prices, introducing innovations, increasing work productivity, optimal distribution of resources and provides many other advantages. We are boldly moving forward so that our business continues to grow, and Ukrainian men and women receive high-quality and effective medicines," Hanna Demchenko emphasized.
Let us recall that the Ukrainian CFO Forum is the largest platform in Ukraine for financial discussions, where the main prospects for business development are discussed. For more than 20 years, the forum has brought together representatives of various sectors and markets, providing opportunities for professional discussions and solving common challenges.