Gulf Pharmaceutical Industries Julphar Underscores Transformative Growth Strategy during Annual General Assembly

Across 2024 and beyond, Julphar will pursue sustainable growth rooted in innovation, collaboration and geographical expansion

Julphar reported AED1.64 billion in revenue for 2023, following double digit growth in GCC, and 28% growth development in Saudi Arabia

22 April 2024, Ras Al Khaimah, UAE: At its Annual General Assembly held today, Julphar Pharmaceuticals, one of the leading pharmaceutical manufacturers in the Middle East and Africa, has strongly underscored the effectiveness of its Growth Strategy 2030, emphasising its commitment to delivering sustainable growth and enhancing value for all stakeholders.

Julphar’s Growth Strategy 2030 was launched with the aim to triple revenues via six central growth pillars – maximising revenue from the existing product portfolio, prioritising new product launches, expanding into advanced specialty products, expanding geographical presence and operations, and strengthening Julphar’s strategic contract manufacturing initiatives to localise production in selected markets. The strategy embodies Julphar’s aspirations to be the leading pharmaceutical company in the MENA region, recognised with first-to-market products and value-adding medicines.

Amidst the prevailing market challenges, Julphar reported a significant milestone in its financial performance in 2023, achieving a total revenue of AED1.64 billion for the year, showing a YoY increase of 1.4% compared with last year. This growth reflects Julphar’s steadfast commitment to delivering high-quality pharmaceutical products and services across diverse markets.

Despite macroeconomic challenges in certain markets, Julphar Group which includes Planet Pharmacies, witnessed double-digit growth in the GCC region, with sales reaching an average of 12%. Particularly noteworthy is the exceptional performance in Saudi Arabia, where in-market sales surged by an impressive 28%, underscoring Julphar’s strategic focus and market penetration efforts in the Kingdom.

In line with its commitment to operational excellence, Julphar continued its pursuit of efficiency, resulting in a sustained reduction in general and administrative expenses by 8.7% for the full year 2023. Furthermore, the company achieved a positive EBITDA of AED108.9 million, showcasing its resilience and ability to navigate market complexities effectively.

Demonstrating robust financial management, Julphar witnessed a substantial increase in net cash from operating activities, reaching AED92.2 million by the end of 2023. This improvement highlights Julphar’s strong working capital management and financial prudence.

Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board, Julphar, said: "We are proud to announce another year of strong financial results and sustainable growth, a testament to our unwavering commitment to innovation, quality, and customer satisfaction. Despite prevailing market challenges, our focus on operational efficiency, market expansion, and product innovation has enabled us to deliver exceptional value to our stakeholders. Looking ahead, we are confident in our ability to sustain growth and continue making a meaningful difference in the healthcare landscape of the Middle East and Africa."

Basel Ziyadeh, Chief Executive Officer, Julphar, said: “Our Growth Strategy 2030 has ben pivotal in driving Julphar’s transformation forward, charting our course for continued growth and advancement with a focus on expanding our scale, capabilities and solidifying our regional and global footprint. Moving forward, I am confident that we will continue to strengthen our R&D capabilities and engage in strategic business initiatives to address manufacturing needs in specific markets.”

Julphar has made significant strides in implementing its Growth Strategy by gaining market share within its existing business and current product portfolio, especially in the GCC region. The company has launched 20 products in the UAE over the past two years and are diligently working to roll out these product launches throughout the MENA region.

In 2023, Julphar also signed a new license and technology transfer agreement with China’s HEC Pharma Group, to strengthen its diabetes portfolio and to bring Glargine and other essential insulin products to more patients across the region.

Looking ahead, Julphar is aiming to launch more than 10 new products in the UAE in 2024, while continuing to champion sustainable development, collaboration, innovation and a growth mindset over the course of the coming year.