Gulf Pharmaceuticals Industries (Julphar) is looking to boost its market share, forge alliances and roll out new products this year as losses have narrowed to more than half.
The pharmaceuticals giant reported on Monday that it has managed to reduce its net loss by 58 percent from 68.9 million dirhams ($18.7 million) last year to 29.2 million dirhams during the first quarter of 2021.
Net sales surged by 60 percent to 166.8 million dirhams during the same period, fuelled by the re-opening in core markets, such as Saudi Arabia, Oman and Kuwait, as well as higher sales in North Africa.
“It is encouraging to see the company continue to make strides in terms of sales growth and loss reduction during the last quarter… We are confident that Julphar will be able to improve its financial and operational performance while unlocking exciting new opportunities,” said Saqer Humaid Al Qasimi, chairman of the Julphar’s board.
In a statement, Julphar said it will continue to focus on “strategic areas” as it divests from non-core activities and further boost its sales in key markets.
“To support the long-term growth prospects, Julphar continues to explore new alliances and partnerships, while also launching new products in core therapeutic areas and investing in capital expenditure to improve operational efficiency,” the statement said.
Julphar is one of the largest pharmaceutical manufacturers in the Middle and Africa, distributing products to more than 50 countries.
Last month, the company confirmed that it had secured a syndicated loan facility worth 1.01 billion dirhams with Arab Bank, Rakbank and Dubai Islamic Bank. The facility is for Julphar to refinance existing debt, as well as support the company’s investment and expansion plans.
The company also reported that the cash flow from operating activities improved during the first quarter compared to last year, reaching 3.3 million dirhams.
“The operational performance of the company has also made considerable progress towards reaching profitability, with Julphar generating a 3.3 million positive EBITDA for the first time since three years,” the statement said.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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