Julphar Reports Strong Start to the Year Advancing Strategic Priorities and Enhancing Financial Position in First Quarter

Julphar delivered strong growth and made significant progress from continued operations in first quarter net revenue reaching AED 359.2m showing a 6.7% growth (9.6% at constant rate) and resulting in EBITDA growth of 9.0% from AED 46.7m to AED 50.9m.

14th May 2025, Ras Al Khaimah, UAE: Gulf Pharmaceutical Industries (Julphar), a leading pharmaceutical powerhouse in the MENA region, today announced its financial results for the first quarter delivering robust profitability, operational improvements, and a strengthened balance sheet.

The company reported around 7% increase in gross profit, maintaining a gross margin of 43%. EBITDA from continuing operations increased by 9% reaching AED 50.9m compared to AED 46.7m in the same period last year. EBITDA margin also improved to 14.2%, up from 13.9% underscoring the company’s ongoing focus on operational efficiency and margin enhancement.

Net income from continued operations for the period has also witnessed a strong improvement reaching AED 21.7m marking an increase of AED 7.2m compared to the same period last year while operating income grew to AED 36.3m vs AED 30.5m in Q1 2024 demonstrating the progress on our efficiency improvement initiatives. Total net profit reached AED 140.9m, driven by strong underlying performance during the period and gains from the divestment of its wholly owned retail pharmacy subsidiary, Zahrat Al Rawdah Pharmacies LLC, resulting in a one-time capital gain of AED 118.7m.

Additionally, Julphar made significant strides in strengthening its balance sheet with total bank borrowings reducing by AED 383.2m, bringing total interest-bearing liabilities down to AED 529.9m. The company’s total equity increased to AED 948.7m, up from AED 809.6m at year-end 2024, reducing accumulated losses from AED 305.0m to AED 164.1m.

In parallel Julphar continued to strengthen its product portfolio, launching 5 new products, including 3 insulin analogues in UAE, and securing 11 new regulatory approvals across regional markets. In a major step to expand its specialty pipeline, the company entered into an exclusive licensing agreement with Dong-A to introduce Darbepoetin biosimilar in the MENA region.

Julphar remains focused on accelerating its growth strategy by expanding its footprint in core markets and fostering innovation through continued investment in high value, differentiated products while maintaining financial discipline and a strong capital structure.

Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board, Julphar, said: "Serving millions of patients across therapeutic areas, we are confident that our growth mindset and focus on innovation, collaboration and geographical expansion will help us deliver continued positive impact to the healthcare sector and to the knowledge economy in the GCC and beyond. Our Growth Strategy 2030 guides our commitment to deliver excellence in the form of first-to-market products and value-adding medicines.”

Basel Ziyadeh, Chief Executive Officer, Julphar, added: “We are entering a phase of accelerated growth, driven by disciplined execution and an unwavering commitment to innovation. Our focus is on becoming a more agile and efficient organization while solidifying the foundation for sustained, long-term growth. With clear strategic priorities, we are taking decisive actions to create long-term value and establish market leadership. This includes significant investments in our manufacturing facilities in UAE in addition to our recently announced investment in Saudi Arabia, a strong R&D pipeline, aiming to expanding our presence in high-growth markets”.

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