Julphar half-year revenues surge to Dhs859.4m on solid growth

Image courtesy: Gulf Pharmaceutical Industries

Gulf Pharmaceutical Industries (Julphar) has posted Dhs859.4m in half-year revenues, a 2.5 per cent year-on-year (YoY) increase from Dhs838.5m a year ago, driven by improved sales and a solid and sustained market share increase across its core markets.

The Ras Al Khaimah-based pharmaceutical firm said it registered double-digit growth in the UAE and GCC region markets due to continued positive developments in key markets such as Saudi Arabia, Oman, and Kuwait.

Julphar’s subsidiary, Planet Pharmacies, reported more than 7.1 per cent growth in sales and is showing good momentum in the retail and distribution business.

The company said more than 86 million units in the first half of the year, a significant increase from 70 million in H1 2022, demonstrating the company’s ability to balance headwinds occurring in specific and isolated markets.

The pharmaceutical company’s H1 2023 profit plunged by 11.5 per cent to Dhs242.8m from Dhs274.4m in the first half of 2022.

Julphar reported an operating loss of Dhs15.2m compared to Dhs21.3m in the same period a year ago.

The company also reported a net loss of Dhs45.7m in the first half of 2023 as a result of increased financing costs as well as socio-economic and political challenges within markets such as Iraq, Sudan, and Egypt.

“Despite substantial geopolitical and economic challenges in the region, Julphar was able to demonstrate resilience and strengthen its presence across key markets,” said Basel Ziyadeh, CEO of Julphar.

“We remain committed to enhancing our product pipeline through the delivery of innovative launches that are in line with our strategic roadmap and supported by our cutting-edge manufacturing capabilities.”

Excluding the impact of one-off events related to the impairment of overdue receivables of Lebanon’s subsidized business, Julphar’s adjusted net loss reached Dhs35.1m.

The company’s earnings before interests, taxes, depreciation and amortisation (EBITDA) reached Dhs53.4m in H1 2023, achieving a 6.2 per cent EBITDA margin as a percentage of net sales compared to Dhs84m in the first half of the previous year.

Julphar’s growth strategy

Going forward, Julphar maintains a focus on its strategic business priorities as it increases market share through its existing portfolio and new products.

The company continues to explore new collaborations and partnerships while launching innovative products in its core therapeutic areas to drive long-term growth while contributing to a healthier future for GCC communities.

Julphar signed a strategic licensing partnership with China’s Sunshine Lake Pharma to establish the company as the first pharmaceutical firm to localize modern insulin analogues manufacturing in the MENA region.

The deal includes the licensing and technology transfer of Insulin Glargine and Insulin Aspart to address both long-acting and short-acting medical insulin needs that are used in the management of type I and type II diabetes.

Read: UAE’s Julphar appoints new CEO to drive growth strategy