Julphar swings to profit in 2021 on higher revenue

The Abu Dhabi-listed company reported a net profit of $18m last year driven by a sharp rise in revenue

Higher revenues have helped Julphar return to profit in 2021. Pawan Singh / The National

Gulf Pharmaceutical Industries, known as Julphar, one of the biggest drug manufacturers in the Middle East and Africa, swung to a net profit in 2021 following years of losses on the back of improved revenue in its core markets.

The group posted a net profit of Dh65 million ($18m) last year, compared with a net loss of Dh317m in 2020, it said in a statement to the Abu Dhabi Securities Exchange, where its shares trade.

Julphar's return to profit, its first since 2017, came after revenue nearly doubled last year to Dh1.15 billion.

"The strong revenue growth was generated from continued market share increase in the company's key markets including the UAE, Saudi Arabia and several North African markets, and the full consolidation of Planet Pharmacies financial results as of July 1, 2021," the company said.

"Julphar made significant progress in its effort to invest in the product pipeline of its core business areas and to divest from non-profitable and non-core assets."

Based in Ras Al Khaimah, Julphar manufactures largely generic drugs including insulin for diabetics and a range of personal care products. The company, which operates across the Middle East, Africa and Asia, has been growing its regional reach while streamlining operations.

Last July, it acquired 100 per cent of Dubai-based pharmaceuticals distribution company Planet Pharmacies, in which it previously held a 40 per cent stake. The move will help Julphar "secure new business expansion opportunities" and offer a "competitive advantage to the group within the regional healthcare sector", the company said at the time.

Julphar also sold its Dubai-based subsidiary Gulf Inject, a local manufacturer of intravenous fluids, to GlobalOne Healthcare, a division of Abu Dhabi's Yas Holding in September, as part of efforts to focus on its "core product portfolio".

The company also signed an exclusive licence and production agreement with Quantum Genomics, a biopharmaceutical company specialising in the development of cardiovascular drugs, to market and produce firibastat, which is used to control blood pressure, in the Middle East, all African countries, CIS and Turkey last year.

Julphar's total assets increased an annual 3.5 per cent to Dh2.4bn at the end of 2021, while earnings per share rose to Dh5.6 last year.