Julphar reports resilient Q1 2026 results supported by margin expansion and strong profitability

Julphar reported net revenue of AED 273.4 million from continuing operations in the first quarter of 2026, reflecting a year‑on‑year decrease of 3.0%, while delivering improved profitability, with EBITDA increasing to AED 44.5 million and net profit from continuing operations reaching AED 28.4 million.

May 2026, Ras Al Khaimah, UAE: Gulf Pharmaceutical Industries (Julphar) today announced its unaudited consolidated financial results for the first quarter ended 31 March 2026.

During the quarter, the Group maintained operational continuity and financial discipline amid a challenging operating environment shaped by regional developments and supply chain disruptions. The decline in revenue during the period was mainly linked to shipment timing, while the Group continues to see good underlying demand for its products across most of its operating markets, supported by adequate in‑market inventory levels to meet patient needs. Profitability improved materially during the quarter, supported by margin expansion, reduced finance costs, and disciplined cost management.

Gross profit increased by 10.3% year‑on‑year to AED 119.7 million, with gross margin improving to 43.8% compared to 38.5% in Q1 2025. EBITDA from continuing operations amounted to AED 44.5 million, representing an increase of 69.8%, with EBITDA margin improving to 16.3% from 9.3% in the prior‑year period. Operating profit rose to AED 31.7 million, while net profit from continuing operations increased to AED 28.4 million, compared to AED 1.5 million in Q1 2025.

The improvement in profitability was primarily driven by higher gross margins, lower operating expenses, and a significant reduction in finance costs following the deleveraging actions completed in 2025. Finance costs declined by 78.4% year‑on‑year during the quarter.

Cash flow from operating activities was positive at AED 8.1 million, despite higher working capital requirements linked to increased trade receivables and inventory levels arising from shipment timing differences. Total shareholders’ equity increased to AED 987.4 million as of 31 March 2026, compared to AED 959.8 million at 31 December 2025. Long‑term bank borrowings continued to decline, further strengthening the Group’s balance sheet.

From an operational perspective, the Manufacturing segment delivered improved margins during the quarter, reflecting effective cost management, operational discipline, and resilience across the supply chain. The Group continued to focus on operational excellence, portfolio optimization, and disciplined capital allocation.

Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board of Julphar, said: “Despite a challenging operating environment, Julphar continued to demonstrate resilience in the first quarter through disciplined execution and a clear focus on financial and operational fundamentals. The improvement in profitability and margin performance reflects the Group’s commitment to prudent management, effective governance, and supporting the continuity and sustainability of its operations.”

Basel Ziyadeh, Chief Executive Officer of Julphar, commented: “Julphar’s first‑quarter performance reflects the strength and adaptability of our core operations. Despite external challenges, including regional developments, supply chain disruptions, and inflationary cost pressures, we delivered improved margins and strong profitability through disciplined execution, effective cost management, and enhanced operational efficiency.”

Julphar continues to monitor the operating environment closely, while maintaining a strong focus on operational continuity, financial discipline, and balance‑sheet strength.

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