Julphar narrows third-quarter loss on higher sales
Re-entry into markets in Saudi Arabia, Oman and Kuwait boosted exports
Gulf Pharmaceutical Industries, one of the largest pharmaceutical manufacturers in the Middle East and Africa, narrowed its third-quarter loss by more than 90 per cent as sales rose and expenses declined.
Net loss attributable to shareholders of the parent for the three months ending September 30 dropped to Dh15.6 million, the company said in a statement to the Abu Dhabi Securities Exchange, where its share trade.
The company generated Dh186.9m in sales, an eight-fold increase from the Dh22.7m recorded in the same period last year when there was a temporary ban on the export of its products to Saudi Arabia, Kuwait and Oman. The ban was lifted earlier this year.
“It is reassuring to see the continued improvement in sales and the reduction of losses over the last quarter,” Julphar's chairman, Sheikh Saqer Humaid Al Qasimi, said. “We are confident that the success of the organisation to date is testimony to a promising future.”
Julphar produces and distributes pharmaceutical products to more than 50 countries across five continents. It has 16 manufacturing facilities in Africa, the Middle East and Asia.
Saudi Arabia banned the sale of Julphar's products in 2018 after the company was found to have failed to meet regional standards. The kingdom lifted the ban in April, following a successful inspection of its manufacturing facilities.
The company said its nine-month loss also narrowed by 74 per cent to Dh98.8m, while revenue from contracts with customers more than doubled to Dh461m.
“Our consistent progress represents our efforts to achieve profitability and enhance our business performance,” Dr Essam Farouk, chief executive of Julphar, said.
The continued success will allow the company to expand its product portfolio and “upgrade our existing facilities”, he added.
Julphar, which completed a recapitalisation earlier this year, said its equity increased by Dh878m to Dh1.27 billion at the end of September following a rights issue in July 2020, which was 2.3 times oversubscribed.
Updated: November 15, 2020 11:43 AM