Abu Dhabi-listed Julphar’s Q1 loss shrinks 58%

Net sales increase 60% to Dh166.8m as some core markets reopen

Ras Al Khaimah-based pharmaceutical firm Gulf Pharmaceutical Industries (Julphar) on Monday said its first quarter 2021 loss shrank 58 per cent to Dh29.2 million as compared to Dh68.9 million for the corresponding period last year, thanks to increase in sales in core markets.

In Q1 2021, the company generated Dh166.8 million in net sales, a 60 per cent increase from Q1 2020, led by a re-opening in core markets, such as Saudi Arabia, Oman, and Kuwait. Additionally, business in North African markets generated considerably higher sales and contributed to the strong growth.

Julphar’s operational performance showed good progress, generating Dh3.3 million positive EBITDA for the first time in three years.

Julphar recently entered into an agreement with G42 Medication Trading to produce the vaccine from China’s Sinopharm for the treatment of coronavirus pandemic. The commercial production is expected to start soon.

Abu Dhabi-listed Julphar signed Dh1 billion syndicated loan facility with Arab Bank, RAK Bank, and Dubai Islamic Bank last month to refinance its existing debt. The funds will also support the company's investment and expansion plans in the medium to long-term.

“It is encouraging to see the company continue to make strides in terms of sales growth and loss reduction during the last quarter. Following the progress of last year, we are confident that Julphar will be able to improve its financial and operational performance whilst unlocking exciting new opportunities,” said Sheikh Saqer Humaid Al Qasimi, chairman of Julphar.

Dr. Essam Farouk, CEO of Julphar, said positive results are due to re-establishing Julphar in its core markets.

Looking ahead, Julphar will divest from non-core activities and increase market share in core markets with its existing portfolio. It continues to explore new alliances and partnerships, whilst also launching new products in core therapeutic areas and investing in capital expenditure to improve operational efficiency.

-waheedabbas@khaleejtimes.com