Julphar Announces Robust Q2 2022 Results Marking a Return to Profitability
Gulf Pharmaceutical Industries PSC (Julphar or the Company), one of the largest pharmaceutical manufacturers in the Middle East and Africa, today reports its financial results for the second quarter.
The Company reported robust results achieving AED 419.9million in net sales for Q2 2022, marking a 91% increase versus Q2 2021. 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% organic growth from its segment operations. The strong results reflect 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 demonstrated solidifying performance reaching AED 44.2 million in Q2 2022, which builds on the successful implementation of the turnaround plan in Q1 2022 whereby the Company reported EBITDA of AED 40 million. Q2 2022 marks a return to a double digit margin of 10.5% of net sales. Julphar remains focused on driving efficiency improvements in its manufacturing operations. Gross profit margin reached 34% in Q2 2022.
Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board, Julphar, said: "The first half of 2022 has been a potent demonstration of the solid strategic direction enacted by the executive team. Successfully concluding the turnaround plan in the first quarter of 2022 paved the way for the robust results achieved in the second quarter. As we look towards the second half of the year, Julphar is in a position of strength and is well placed to achieve sustainable growth in line with its Strategic Objectives 2030. I am confident that Julphar is set to re-emerge as a market leader."
Dr. Essam Mohammed, Chief Executive Officer of Julphar, said: “Julphar’s transformational growth strategy, and the executive team’s laser focus on returning to profitability has contributed to the strong results. As we continue into the next phase of growth, we will continue to expand our geographic reach and our new launches, with the ultimate ambition of providing sustainable value for patients, shareholders, and stakeholders.”
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.
Year to date, the company has launched 10 new products and remains on track to deliver its guidance of 13 new product launches by year end. The new product portfolio is already contributing to the growth and Julphar remains on track to deliver its full year 2022 objectives including growing its market share in existing markets, and realizing profitability improvements through economies of scale, cost savings and investments in operational efficiencies.
The Company is also continuing to execute its geographical expansion plans, and has recently signed agreements that aim to expand its reach in Latin America, CIS, and entered the second half of the year with a focus on expanding its reach in Africa. Aligned to its 2030 plan, Julphar remains committed to inorganic growth and enters the second half of the 2022 with a strong pipeline of opportunities.
The company is investing in in-house R&D to develop a robust and sustainable pipeline and launch more than 86 new products in well-defined new therapeutic areas in the coming years.