Gulf Pharmaceutical Industries Julphar reports financial results for Q1 2024

Julphar reports revenues of AED439.1 million in Q1 2024, delivering strong performance in GCC countries with double digit growth

20 May, 2024, Ras Al Khaimah, UAE: Gulf Pharmaceutical Industries PJSC (Julphar), one of the largest pharmaceutical manufacturers in the Middle East and Africa, has reported its financial results for the period ending March 31^st, 2024.

Amidst the challenges affecting the region related to currency devaluation in Egypt and country specific challenges mainly in Iraq, Libya and Sudan, Julphar reported revenues of AED439.1 million in Q1 2024, a -3.3% decrease (-2.1% at constant currency) compared with last year (AED 454.1 million).

The company maintained its robust performance in most of the GCC markets, showing double digit growth in most of the GCC countries, with net sales reaching AED128.7 million, a 4% increase in comparison to this period last year, highlighting the company’s success and strengthened market position in the region.

In the first quarter of the 2024, Julphar expanded its Gross Margin, that increased by 4.2% to AED165.7million reaching 37.7% on Net Sales, from AED152.2 million in Q1 2023 that represented 33.5% on Net Sales thanks to strong focus on manufacturing efficiencies that also contributed to cost reduction.

Revenue through our pharmacy retail and wholesale operations, Planet Pharmacies, continues to show strong development with growth at 7.8% compared to the prior year period and reaching net sales of 289.7 mAED.

EBITDA from continuing operations reached a positive AED55.2 million in Q1 2024 and achieved a 12.6% EBITDA margin as percentage of net sales, in comparison to AED45.3 million in Q1 2023.In addition, cashflow from operating activities reached AED80.5m, showing a significant improvement in comparison to the previous period as a result of strong management of working capital.

Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board, Julphar, said: “We at Julphar are resolute in our pursuit of delivering excellence and commitment to our strategic approach. As ever, we are focused on bolstering our efforts and providing innovative solutions so that patients are able to access the high-quality medicines that they need wherever they are.”

Mr. Basel Ziyadeh, Chief Executive Officer, Julphar, said: “Our encouraging performance during the last quarter highlights the company’s progress towards increasing its market share in core markets across the GCC and achieving greater efficiencies when it comes to manufacturing. As we look to expand our portfolio and bring new products, we are confident in our capabilities of generating increased sales across our markets and developing strong partnerships to drive further growth.”

Looking to the future, Julphar remains committed to innovation and building on its product pipeline, underscoring the company’s dedication to meeting the growing needs of customers and enhancing its product portfolio.