Dubai: Gulf Pharmaceutical Industries (Julphar), one of the largest pharmaceutical manufacturers in the Middle East and Africa, reported a net profit of Dh73 million for the second quarter of 2021.
In Q2-2021, the company generated Dh221.3 million in sales, a 30 per cent increase from the same period last year. 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 Dh309 million, driven by the settlement of previous customer obligations, the restructuring of the bank loans and the divestment of non-core activities.