UAE's pharma giant Julphar speeds up its comeback, narrows 2020 losses
Sales gain after re-entry into Saudi Arabia, and corporate restructuring works too
Dubai: The UAE’s biggest pharma manufacturer is getting a lift in its numbers – and that’s even before it started local production of the COVID-19 vaccines.
Julphar (or Gulf Pharmaceutical Industries) saw net loss for 2020 drop down to Dh317.4 million, which included a one-time loss of Dh201.3 million. But that’s compared to the Dh518.9 million loss sustained in 2019. This was attributed to a “much-improved sales generation and associated production efficiency improvements and successful market strategies,” the company said in a statement.
It was this month that Julphar commenced production of the COVID-19 vaccines - Hayat-Vax - through an association with a Chinese partner. And in April last year, Julphar restarted exports to key markets as Saudi Arabia, Oman, and Kuwait. This helped generate a Dh7.1 million positive EBITDA before one-time effects.
Net sales for 2020 were Dh581.2 million, which is a 93 per cent gain on 2019’s Dh301.5 million. Dr. Essam Farouk, CEO of Julphar, said in a statement: “We will consolidate our market position and expand our market share in the MENA region. The ongoing transformation programme will make the company more competitive in our core markets.
“Last year, the capital restructuring marked a major milestone in our transformation. We are confident that the company is well on track to regain its leading market position in the MENA region.”
With the aim to strengthen the company’s capital position and improve its debt profile, the Dh500 million rights issue was successful and more than two times oversubscribed.