Dubai: The UAE’s pharma company Julphar now has accumulated losses of Dh83.2 million, brought on by product recalls and the temporary suspension by the Saudi Food & Drug Authority to export medicines to Saudi Arabia and Bahrain.
For the six months to end June, the Ras Al Khaimah company had a net loss of Dh94.5 million. The current liabilities exceed assets by Dh100.8 million.
“The Group had negative cashflow from operating activities of Dh97.2 million,” the financial statements note.
Julphar had recently completed a capital restructuring programme after a rights issue. A new CEO is in place and there were other changes in top executive positions.
The first-half 2020 numbers do show an improvement compared with the Dh187.8 million it had last year same time. And specific to the second quarter of 2020, losses were cut down to Dh25.6 million from Dh96.2 million a year ago.
Revenues in the first-half were at Dh274.1 million, with the bulk of it – Dh169.7 million – generated in the second quarter. Again, the second quarter comparison to last year makes a telling statement – revenues between April to June 2019 were Dh89.2 million, when the impact on export bans was most felt.
The group restructured its capital base by reducing the issued share capital to extinguish accumulated losses at December 31, 2019, followed by a rights issue at Dh1 a share.
It is also making changes to the product portfolio and launch new products in the therapeutic categories in additional markets.
The temporary suspensions on exports to Saudi Arabia, Bahrain, Oman and Kuwait have been lifted.