Julphar Announces Strong Sales And Profitability Growth In H1 Of 2024

Gulf Pharmaceutical Industries (Julphar), a prominent pharmaceutical entity in the MENA region, has disclosed its financial outcomes for the second quarter (Q2) and the first half (H1) of 2024. The results indicate substantial growth across key performance metrics.

Julphar's sales for H1 2024 reached AED 883.1 million, reflecting a 2.8% increase. Q2 alone saw sales of AED 444.0 million, marking a 9.5% rise compared to the previous quarter (+10.1% at constant currency). This growth was primarily driven by robust performance in Q2.

Revenue from Planet Pharmacies, Julphar's retail and wholesale operations, showed significant growth. For the first half of the year, revenue reached AED 576.9 million, an 8.4% increase compared to the same period last year.

Profitability also improved markedly during this period. The company reduced its core net losses before taxes by AED 42.8 million, moving from AED -40.5 million in H1’23 to AED +2.3 million this year. EBITDA increased by AED 55.0 million, from AED 53.4 million to AED108.4 million.

Julphar reported strong cash flow from operations, reaching AED 101.0 million compared to AED -15.7 million in the same period last year. This improvement was driven by efficiency initiatives and a heightened focus on working capital management.

Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board at Julphar, stated: "Serving millions of patients across therapeutic areas, we are confident that our growth mindset and focus on innovation, collaboration and geographical expansion will help us deliver continued positive impact to the healthcare sector and to the knowledge economy in the GCC and beyond."

The company's resilient performance underscores its strength and commitment across operating markets while enhancing operational efficiency and sustaining growth trajectory.

Investment in Portfolio and Pipeline

Julphar is steadily increasing its investment in its portfolio and pipeline with a focus on specialized therapy areas. This strategic move aims to bolster their market position further.

Basel Ziyadeh, Chief Executive Officer at Julphar, added: "These strong results are embarking Julphar’s journey to deliver sustainable long-term growth and value to shareholders. As we invest in the future, we remain committed to strengthening our capabilities, implementing transformational changes across our organization to drive efficiencies across all our operations while we continue reassessing our go-to-market models and our non-core areas."

The company's Growth Strategy 2030 guides its commitment to delivering excellence through first-to-market products and value-adding medicines.

Julphar's robust performance during this period highlights their ability to enhance operational efficiency while maintaining steady growth momentum across various markets.

With inputs from WAM