Julphar’s net sales rise 156% to hit AED418.6m in Q1 2022

Ras Al Khaimah / WAM

Gulf Pharmaceutical Industries (Julphar) reported on Tuesday its financial results for the first quarter ending March 31, announcing AED418.6 million in net sales in Q1 2022, a 156% increase from Q1 2021.
Growth was driven by an increase in sales attributed to the strategic acquisition of Planet Pharmacies and a 37% 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.
Ebitda from continuing operations increased to AED40 million in Q1 2022, a significant increase from AED0.2 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% compared to 28% in the previous year.
Net profit of the Julphar Group for the period reached AED1.9 million, marking a return to profitability compared to a loss of AED29.2 million in Q1, 2021. Cash flow from operations was AED10.2 million in Q1 2022, up from AED3 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: “Maximizing 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.