UAE pharmaceutical giant Julphar back in sound health, as revenues and margins rise

Key margins reflect solid results from Julphar's turnaround planning

Last updated: August 12, 2022 | 10:31

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New market entry was pivotal towards Julphar's strong Q2-22 showing.

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Dubai: The RAK-headquartered pharma company Julphar continues to make headway in its search for higher growth, recording a ‘return to double-digit margin’ on net sales in the second quarter. Margins were at 10.9 per cent, while revenues hit Dh419.9 million during April to June, a 91 per cent year-on-year gain.

Clearly, the results of a group-wide turnaround treatment is working, with EBITDA at Dh40 million. Gross profit margins locked on to 34 per cent.

Successfully concluding the turnaround plan in the first quarter of 2022 paved the way for the robust results achieved in the second quarter. As we look towards the second half of the year, Julphar is in a position of strength.

Sheikh Saqer Bin Humaid Al Qasimi Chairman of Julphar

“Julphar’s transformational growth strategy, and the executive team’s laser focus on returning to profitability has contributed to the strong results,” said Dr. Essam Mohammed, CEO of Julphar.

Dr. Essam Mohammed

As we continue into the next phase of growth, we will continue to expand our geographic reach and our new launches, with the ultimate ambition of providing sustainable value for patients, shareholders, and stakeholders.

- Dr. Essam Mohammed, CEO of Julphar

The full turnaround plan was implemented in Q1-22.

Geo-economic headwinds did impact year-to-date sales in markets such as Algeria, Ethiopia and Morocco, Julphar’s operations. But productivity remained consistent and Julphar had 10 per cent organic growth from its segment operations. The latest results reflect ‘increased focus on Julphar’s core markets in MENA, improved market access and the expansion of the company’s product portfolio’.

Julphar’s 2030 growth strategy, unveiled early 2022, is intended to deliver 'sustainable growth' and with the aim of tripling revenues by 2030. The strategy is built around six 'core pillars' - maximizing revenue from its current product portfolio, new product launches, geographical expansion, strategic business initiatives, advanced specialty products initiatives, and inorganic growth initiatives.