Julphar had to go through an extended negotiation with Saudi authorities to win a re-entry. Image Credit: Gulf News Archive

Dubai: The UAE pharmaceutical leader Julphar managed to bring down net losses to Dh317.4 million, even as it sees sales improve from re-entry into Saudi Arabia, Oman, Kuwait and Bahrain. In 2019, losses were at Dh518.9 million. 

The net loss for financial year 2020 includes Dh201.3 million in one-time impact related to “asset write-offs, provisions for tender penalties and other expenses primarily related to the transformation programme’.

In a statement, the company said it has “successfully restructured its capital base”, by reducing the issued share capital. This helped it “extinguish” accumulated losses as at December 31, 2019, followed by a right issue.

During 2020, loan obligations totaling Dh445.2 million were restructured, helping to “postponed the repayment of principal”.

Sales head higher

The company had sales of Dh581 million, which represents a quite healthy 93 per cent increase year-on-year. Clearly, the benefits from being back in the other Gulf markets helped.

“The substantial decrease of the net loss is achieved due to increased net sales, expense reduction and gross margin improvement,” Julphar notes.

Dr. Essam Farouk, who recently took over as CEO of Julphar, said: “Our consistent progress represents our efforts to achieve profitability and enhance our business performance. This success will enable us to continue expanding our product portfolio and upgrade our existing facilities.”