Gulf Pharmaceutical Industries (Julphar), one of the largest pharmaceutical manufacturers in the Middle East and Africa, has announced its Q2 2022 results. The company reported robust results, achieving Dhs419.9m in net sales for Q2 2022, marking a 91 percent increase versus Q2 2021.
Net profit for the period reached AED5.2 million, compared with AED73.4 million in the same period last year. The drug manufacturer had recently made a turnaround with a net profit of AED65 million for 2021, following years of losses. In a statement on Friday, the Abu Dhabi-listed firm said that geo-economic headwinds have impacted year-to-date and quarter-on-quarter sales in certain markets such as Algeria, Ethiopia, and Morocco. Its newly acquired distribution business, Plant Pharmacies, has also posted lower margins.
While geo-economic headwinds have impacted year-to-date and quarter-on-quarter sales in markets such as Algeria, Ethiopia, and Morocco, Julphar’s operations and productivity have remained consistent in these markets and Julphar has achieved 10 percent organic growth from its segment operations. The strong results reflect the increased focus on Julphar’s core markets in MENA, improved market access, and the expansion of the company’s product portfolio. Earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations reached Dhs44.2m in Q2 2022, which builds on the successful implementation of the turnaround plan in Q1 2022 where the company reported an EBITDA of Dhs40m. The quarter marked a return to a double-digit margin of 10.5 percent of net sales. Gross profit margin reached 34 percent in Q2 2022.
Julphar pointed out that operations and productivity in the affected markets “have remained consistent”, with organic growth from segment operations rising by 10%. Overall, results remained “robust”, with net sales for the second quarter reaching AED419.9 million, up by 91% compared to a year earlier. EBITDA from continuing operations reached AED44.2 million, marking a return to a double-digit margin of 10.5% of net sales. The gross profit margin for the period reached 34%.
The company’s 2030 growth strategy, announced in early 2022, will deliver sustainable growth and value to all stakeholders. With the ultimate aim of tripling Julphar’s revenue by 2030, the Company’s executive management team remains committed to delivering on its strategy built around six core pillars; maximizing revenue from its current product portfolio, new product launches, geographical expansion, strategic business initiatives, advanced specialty products initiatives, and inorganic growth initiatives.
