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Julphar announces Dh418.6 million in net sales during Q1

The RAK-based pharmaceutical group also attributed increase in sales to 37 per cent organic growth from the Julphar Segment operations, reflecting the increased focus on Julphar’s core markets in Mena, improved market access and the expansion of the company’s product portfolio

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Gulf Pharmaceutical Industries (Julphar) on Tuesday said its first-quarter net sales surged 156 per cent to Dh418.6 million due to its strategic acquisition of Planet Pharmacies.

The RAK-based pharmaceutical group also attributed increase in sales to 37 per cent organic growth from the Julphar Segment operations, reflecting the increased focus on Julphar’s core markets in Mena, improved market access and the expansion of the company’s product portfolio.

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) from continuing operations increased to Dh40 million in Q1 2022, a significant increase from Dh0.2 million in Q1 2021.

The improved profitability results from Julphar’s successful implementation of its two-year strategic turnaround plan, divesting from non-core and loss-making activities and delivering efficiency improvements in its manufacturing operations. Gross profit margin increased to 41 per cent compared to 28 per cent in the previous year.

Net profit of the Julphar Group for the period reached Dh1.9 million, marking a return to profitability compared to a loss of Dh29.2 million in Q1, 2021. Cash flow from operations was Dh10.2 million in Q1 2022, up from Dh3 million in Q1, 2021.

Sheikh Saqer bin Humaid Al Qasimi, Chairman of the Board of Julphar, said this is a strong set of results that build on our financial turnaround of the past two years. "With a visionary management team and a cohesive 2030 strategy, we are well-positioned to re-establish Julphar as a market leader and better serve our clients in the Mena region and beyond.”

Dr Essam Mohammed, chief executive officer of Julphar, said: “We have successfully delivered our strategic turnaround priorities and delivered robust growth across key performance drivers. We are now focused on executing the next stage of Julphar’s transformational growth phase and providing sustainable value for patients, shareholders and stakeholders.”

The company recently announced its 2030 growth strategy to deliver sustainable growth and value to all stakeholders. The strategy, which aims to triple revenue by 2030, is built around six core pillars: “Maximising Revenue from current Product Portfolio”, “New Product Launches”, “Geographical Expansions”, “Strategic Business Initiatives”, “Advanced Specialty Products Initiative” and “In-Organic Growth Initiatives”.

Under the strategy, the company will seek to scale its existing product portfolio, grow market share in existing markets, enter new markets, develop strategic partnerships and realise profitability improvements through economies of scale, cost savings and investments in operational efficiencies. The company is investing in in-house R&D to develop a robust and sustainable pipeline and launch more than 100 new products in well-defined new therapeutic areas in the coming years.

— muzaffarrizvi@khaleejtimes.com