Gulf Pharmaceutical Industries Julphar announces Q1 2022 results and delivers robust top and bottom line growth
Gulf Pharmaceutical Industries PSC (Julphar), one of the largest pharmaceutical Companies in the Middle East and Africa, today reports its financial results for the first quarter ending March 31th, 2022.
In Q1 2022, the company generated AED 418.6 million in net sales, 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 which reflects 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 AED 40 million in Q1 2022, a significant increase from AED 0.2 million in Q1 2021. The improved profitability is the result of 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 AED 1.9 million, marking a return to profitability compared to a loss of AED 29.2 million in Q1, 2021. Cash flow from operations was AED 10.2 million in Q1 2022, up from AED - 3 million in Q1, 2021.
Shiekh Saqer Bin Humaid Al Qasimi, Chairman of the Board, 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."
Dr. Essam Mohammed, Chief Executive Officer of Julphar, said: “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.”
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 realize 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.