Egypt: Rameda reports 37% year-over-year increase in 4Q23 revenue

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Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda), a prominent Egyptian pharmaceutical company, disclosed its consolidated financial outcomes for the quarter concluding on 31 December 2023.

The company’s revenues rose by 37% year-over-year to EGP 534m in 4Q23, fueled by robust growth across all Rameda’s sectors. The private sales division led the surge with a 51% increase, followed by a 28% rise in domestic tender sales. For the full year, Rameda’s revenues climbed by 30% to EGP 1,922.4m, thanks to strong sales from the company’s top ten products.

Gross profit for the group surged by 41% year-over-year to EGP 254.1m in 4Q23, with a margin improvement of 1.3 % to 47.6%, demonstrating the benefits of operational efficiency. However, despite a 26% annual growth in gross profit to EGP 905.9m, the full-year margin slightly decreased by 1.4 % to 47.1% in FY23. This was attributed to a 36% hike in raw material costs, a 67% uptick in spare parts, maintenance, and materials, and a 72% rise in impairment costs totaling EGP 34.0m, including a one-time charge of EGP 25.7m related to the COVID-19 antiviral product line.

EBITDA experienced a 58% year-over-year growth to EGP 140.7m in 4Q23, with a margin increase of 3.5 % to 26.3%, thanks to effective portfolio repricing and cost-saving measures. Over the full year, EBITDA went up by 26% to EGP 532.9m, although the margin slightly contracted by 0.8 % due to a lower gross profit margin. Nevertheless, the impact was less pronounced as cost optimization efforts led to a reduction in SG&A expenses from 24% of revenues in FY22 to 23% in FY23.

Core Net Income, defined as net income before minority interest and adjusted for foreign exchange fluctuations, one-time impairments, and non-cash ESOP charges, grew by 47% year-over-year to EGP 61.6m in 4Q23, with a margin increase of 0.8 % to 11.5%. For the entire year, core net income rose by 13% to EGP 270.5m, but the margin narrowed by 2.0 % to 14.1% in FY23.

“Despite significant challenges in 2023, such as escalating inflation, supply chain issues, and foreign exchange constraints affecting raw material supplies, Rameda has achieved impressive revenue growth across all business segments,” stated Amr Morsy, CEO of Rameda.

“Our success reflects the robustness of our diversified portfolio and our commitment to sustainable growth. We’ve strategically capitalized on our existing products in key therapeutic areas and enhanced value through ongoing improvements. Moreover, our acquisitions in rapidly expanding therapeutic categories have contributed notably. In alignment with our portfolio optimization strategy and our goal to broaden our offerings in fast-growing and chronic therapeutic areas, I’m delighted to share that the Group introduced 2 new products and acquired 11 more in FY23. The acquisition of the portfolio of 11 cardiometabolic products continues to reflect our commitment to delivering on one of our key strategic pillars, which aims to complement our organic growth with value-accretive molecule acquisitions across fast-growing therapeutic areas that will support Rameda’s trajectory. Moreover, the Group’s export sales vertical booked a revenue increase of 69% y-o-y to EGP 180.2m in FY23 on the back of improved trading conditions. In USD terms, exports recorded 7% growth y-o-y to reach $5.9m.”