UAE’s Julphar records Dhs1.9m in net profit for Q1 2022

UAE-based pharmaceutical company Gulf Pharmaceutical Industries (Julphar) has reported Dhs1.9m in net profit for the group during Q1 2022. It swung to profit from a loss worth Dhs29.2m reported in Q1 2021.

Cash flow from operations was Dhs10.2m in Q1 2022. In Q1 2022, the company generated Dhs418.6m in net sales, posting a 156 per cent increase from Q1 2021. Growth was driven by an increase in sales attributed to the acquisition of Planet Pharmacies and a 37 per cent organic growth from the Julphar Segment operations.

In Q1- 2022, The company returned to profitability for the first time in 5 years compared to the same period, EBITDA from continuing operations increased to AED 40 million in Q1 2022, a significant increase from AED 0.2 million in Q1 2021. pic.twitter.com/6YYIU8b7lb

— Julphar (@JulpharUAE) May 17, 2022

EBITDA from continuing operations increased to Dhs40m in Q1 2022, an increase from Dhs0.2m in Q1 2021. The improved profitability is the result of Julphar’s implementation of its two-year strategic turnaround plan, divesting from non-core and loss-making activities and delivering efficiency improvements in its manufacturing operations, a statement said.

Gross profit margin increased to 41 per cent compared to 28 per cent in the previous year.

Shiekh Saqer Bin Humaid Al Qasimi, chairman of the Board at 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 to better serve our clients in the MENA region and beyond.”

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

The company recently announced its 2030 growth strategy to deliver sustainable growth.

Read: UAE’s Julphar to launch over 100 new products as part of its Strategy 2030

The plan targets tripling Julphar’s revenues by 2030 through six central growth pillars that focus on maximising revenue from their present product offering, new products, geographical expansions, strategic business initiatives, initiatives to create advanced speciality products 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 realize profitability improvements through economies of scale, cost savings and investments in operational efficiencies.