Dubai: The UAE pharmaceutical company Julphar was hit with a Dh96.8 million loss for the January to September period compared to a net profit of Dh10 million same time in 2022. Losses sustained during the third quarter was quite sharp, at Dh41.9 million.
The Ras Al Khaimah headquartered company cites the geopolitical and economic situations in two of its overseas markets – Iraq and Sudan – as pulling down its top-line numbers, while another factor was the currency devaluation in Egypt.
In sharp contrast, the operations in the UAE and the other Gulf markets provided for fairly strong revenue gains. In fact, Julphar’s numbers from most GCC markets were in double-digit growth terms during the third quarter.
Another positive that the company can take forward is the firming up in gross margin, from Q2-23’s 25.8 per cent to 27.7 per cent by end September. This stems from ‘operational improvement’, the company, which has been through some major restructuring operations in the last 3 years, said.
Burdened by the Q3-23 bottom-line, the combined losses as of end September was at Dh334.7 million, making up 29.7 per cent of the paid-up capital.
But Julphar reckons there is sufficient space to get itself back into financial stability. It cites that total spending and global demand for medicines will increase over the next five years to approximately $1.9 trillion by 2027, and that would translate into higher orders for the company's products. Also, 'demand for innovative drugs will drive oncology spending almost double the current level', Julphar states.
It has 32 new products that have been approved in different countries so far this year, which will set the stage for launches in the coming period. This is what it hopes will drive improvements in the final quarter and going forward:
- Deliver strong market share increase in core markets, including UAE (and) GCC, with special emphasis on Saudi Arabia.
- Continue cost saving and efficiency initiatives, resulting in lower cost in general and administration and S&D (selling and distribution) in relation to sales compared to previous year when excluding one-time events.
- Continue executing new product launches and increasing the products pipeline.