- Julphar returns to profitability and reports 73 million AED net profit for the second quarter
- Continued strong revenue growth with 30% increase from previous year
Gulf Pharmaceutical Industries PSC (Julphar), one of the largest pharmaceutical manufacturers in the Middle East and Africa, today reported its financial results for the second quarter ending June 30th, 2021.
In Q2 2021, the company generated AED 221.3 million in sales, a 30% increase from Q2 2020. The company has returned to profitability in Q2 2021 for the first time in 3 years. The positive trajectory has been fuelled by the revenue growth of high margin products and the manufacturing of the COVID-19 vaccine Hayat-Vax, combined with the positive effects of implemented cost saving measures. The successful re-entry into core markets such as Saudi Arabia, Oman, Bahrain and Kuwait continued in the past quarter. Progress in the divestment of non-core activities as well as a one-time gain from the settlement of past outstanding balances with distributors have also contributed to the company’s return to profitability.
Additionally, the company considerably strengthened its balance sheet position and reduced its liabilities by 309 million AED, driven by the settlement of previous customer obligations, the restructuring of the bank loans and the divestment of non-core activities. The net profit from continuing operations for the period is 67.3 million AED with a positive EBITDA of 88.9 million AED.
Sh. Saqer Humaid Al Qasimi, Chairman of the Board, Julphar, said: “I am pleased to say that we have done exceptionally well during the first half of the year. The recovery of Julphar has been consistent and steady, and it is encouraging to witness the return to profitability which is testament to the management’s unwavering focus on not only recovering our leadership position, but also unlocking new opportunities for growth.”
Dr. Essam Mohamed, Chief Executive Officer of Julphar, said: “Our financial performance this quarter confirms the progress of Julphar’s financial turnaround, which we have been working towards as part of our vision to be a leader in pharmaceuticals serving those in need in the MENA region and beyond. In addition to the re-establishment of Julphar in our key markets, we are very proud of our role in manufacturing the Sinopharm COVID-19 vaccine Hayat-Vax, which marks a significant contribution to the health and well-being of people and, on a larger scale, the sustained economic recovery.”
Looking ahead, Julphar remains focused on expanding the sales activities in key markets to increase market share with its existing portfolio. Furthermore, the company will increase its efforts towards filling its product pipeline to accelerate the introduction of its new products (speciality differentiated generics) from its newly fuelled pipeline, which will make a transformational change to the company’s product portfolio.