Gulf Pharmaceutical Industries, also known as Julphar, swung to a profit in the first quarter of 2022 from a net loss the previous year, as revenue grew on the back of higher sales in its core markets.
Net profit attributable to equity holders of the parent for the three-month period to the end of March was Dh1.5 million, compared with a loss of Dh24m during the same period last year, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue from contracts with customers during the period more than doubled to Dh418.6m.
The company said an increase in sales and market share in its core markets including the UAE, Saudi Arabia, Iraq and Kuwait, as well as the "implementation of cost-saving initiatives and divestment of non-core activities”, underpinned the return to profitability.
Julphar is a manufacturer of largely generic drugs. It also makes insulin for diabetics and a range of personal care products. The company employs more than 2,400 people and distributes pharmaceutical products to more than 50 countries across the globe.
Last year, Julphar sold its Dubai-based subsidiary Gulf Inject to GlobalOne Healthcare, a division of Abu Dhabi's Yas Holding, in a bid to focus on its core product portfolio and strengthen its business.
The company also acquired 100 per cent of Dubai-based pharmaceuticals distribution company Planet Pharmacies to grow its business in the region.
Julphar, which previously held a 40 per cent stake in Planet Pharmacies, bought the remaining 60 per cent stake from Kamco Invest to complete the deal last year.
The company will focus on strategic areas of business and retail pharmacies expansion in the UAE and Saudi Arabia, the Arab world’s two largest economies, it said in a separate statement on Monday.
It will also forge new alliances and partnerships to strengthen its product portfolio and increase capital expenditure as it looks to expand its production capacity and capitalise on new growth opportunities in the sector.
The pharmaceutical market in the Middle East and North Africa is expected to grow 5.7 per cent annually to reach $56 billion by 2025, according to Julphar.