The financial performance of Julphar during the year under review was as under:

Sales
Julphar registered sales revenue of AED 1,024.1 million during the year 2011, a yoy growth of 11.3% over sales of AED 920.2 million in the previous year.

Sales during the period were driven by the private market sales which saw a yoy growth of 28.7%, which more than countered a decline in tender market sales of 18.4% yoy.

Cost of Sales
The cost of sales for the year was AED 396.4 million, up 4.8% yoy. As a share of sales revenues, the overall direct costs decreased sharply to 38.7% from 41.1% in the previous year. Efficient sourcing and effective inventory management measures limited the increase in costs of materials to 5.5% yoy, which more than off set increases in other direct costs and overheads during the year.

Gross Profit
Gross Profit for the year was AED 627.6 million vs. AED 542.1 million in the previous year, up 15.8% yoy. The GPM was 61.3%, as against 58.9% in the previous year.

The direct costs were controlled through an efficient management of sourcing, inventory, other direct costs and overheads

Operating Profit
The marketing and distribution expenses were AED 388.9 million during the year – 38.0% of revenues and 18.5% higher yoy, as against 35.7% of revenues in the previous year. General & administrative expenses, on the other hand, were AED 52.6 million during the year – 5.1% of revenues and 2.8% lower yoy, as against 5.9% of revenues in the previous year. The Operating Profit for the year was AED 200.0 million vs. AED 165.9 million in the previous year, up a healthy 20.6% yoy. The OPM this year was 19.5% vs. 18.0% last year.

Finance Cost
The fi nance cost for the year was AED 20.1 million compared with AED 13.6 million during the previous year. The increase is due to higher average debt levels during the year.

Profit
Profit of Julphar for the year was AED 170.2 million vs. AED 154.5 million in the previous year, up 10.2% yoy. The PM this year was 16.6% vs. 16.8% the previous year.

Julphar continued to deliver healthy margins at gross, operational as well as profit levels, proving the sustainability of its robust business model and strong fundamentals

Earnings Per Share
Basic earnings per share for the year was 24 fils, as against 22 fils in the previous year.
 

Dividend for the Year
The Board has recommended a cash dividend of 10% (10 fils per share) and stock dividend of 10% for 2011, as against the cash dividend of 10% (10 fils per share) paid out for 2010.

 

The proposed dividend will be paid out subject to approval in the Annual General Meeting.
 

Capital Structure
The paid-up capital of the company at the end of December 2011 was AED 713.4 million, at the same level as at the end of the previous year. Shareholders’ equity stood at AED 1.57 billion, up 5.9% from end of 2010.

 

Long-term debt stood at AED 100.4 million, while short-term debt stood at AED 394.8 million at the end of the year. Total Debt-Equity ratio at the end of the year was 0.32.

 

The current ratio of the company was 1.7 at the end of December 2011.