Net sales

Julphar announces a net turnover of 418.6 million dirhams during the first quarter – News

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



The improvement in profitability results from the successful implementation by Julphar of its two-year strategic turnaround plan. — Photo provided

Relative to staff

Published: Tue, May 17, 2022, 7:43 PM

Gulf Pharmaceutical Industries (Julphar) said on Tuesday that its first-quarter net sales jumped 156% to 418.6 million dirhams due to its strategic acquisition of Planet Pharmacies.

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

The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations rose to Dh40 million in the first quarter of 2022, a significant increase from Dh0.2 million in the first quarter of 2021.

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

The Julphar Group’s net profit for the period reached 1.9 MDH, marking a return to profitability compared to a loss of 29.2 MDH in Q1 2021. Operating cash flow amounted to 10.2 MDH in Q1 2022, against 3 Dh. million in the first quarter of 2021.

Sheikh Saqer bin Humaid Al Qasimi, Chairman of the Board of Julphar, said this was a solid set of results that builds on our financial turnaround over 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 customers in the Mena region and beyond.”

Dr. Essam Mohammed, Chief Executive Officer of Julphar, said: “We successfully delivered on 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 creating 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 fundamental pillars: “Maximize revenue from the current product portfolio”, “New product launches”, “Geographic expansion “, “Strategic Business Initiatives”, “Advanced Specialty Products Initiative” and “Internal Growth Initiatives”.

As part of this strategy, the company will seek to evolve its existing product portfolio, increase market share in existing markets, enter new markets, develop strategic partnerships and achieve profitability improvements through economies of scale, cost savings and investments in operational efficiency. The company invests in internal R&D to develop a strong and sustainable pipeline and launch more than 100 new products in well-defined new therapeutic areas in the coming years.

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