Gulf Pharmaceuticals Industries, better known as Julphar, reported a huge drop in third-quarter net profit as operating income fell, despite a rise in revenue.
Profit attributable to equity holders in the three months to the end of September declined to Dh4.1 million ($1.11m), from Dh53.3m a year ago, the company said in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Operating income for the period slid 64 per cent year-on-year to Dh14.5m, while revenue from contracts from customers rose about 15 per cent to Dh415.8m.
Finance costs also rose during the period, affecting profit.
“The strong third-quarter results are a testament to the strategic turnaround plan that we completed in early 2022, and showcase the continued value potential of Julphar,” said Essam Mohammed, chief executive of Julphar.
“As we look to the end of 2022, Julphar remains on track to deliver on market guidance and we will continue to expand our geographic reach and introduce new products, with the ultimate ambition of providing sustainable value for patients, shareholders and stakeholders.”
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 in more than 50 countries.
The company’s nine-month profit declined to Dh10.4m, from Dh103.2m during the same period last year, as finance costs rose and operating income fell. Revenue, meanwhile, surged during the January-September period.
Earlier this year, Julphar unveiled a strategy to achieve sustainable business growth and triple revenue by 2030.
The strategy is built around six pillars, including maximising revenue from its current product portfolio, the launch of products, geographical expansion, strategic business initiatives, advanced speciality products initiatives and inorganic growth initiatives.
So far, the company has launched 25 products and “remains committed on track to deliver its full-year 2022 objectives including the growth of market share in current operating territories, achieving sustained profitability and enhancing operational efficiencies”, it said on Friday.
Julphar plans to launch more than 86 products in the coming years.
