Gulf Pharmaceuticals Industries, the Ras Al Khaimah-based company better known as Julphar, reported a 93 per cent annual decline in second-quarter profit as it restructured its operations.
Profit attributable to equity holders in the three months ended June dropped to Dh4.8 million ($1.3m), from Dh73.8m a year ago, it said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
However, revenue surged by about 91 per cent annually to Dh420m as Julphar increased its focus on core markets in the Mena region, improved market access and expanded its portfolio.
For the first half of 2022, Julphar's profit slid 87 per cent to Dh6.3m from Dh50m a year ago, but revenue more than doubled annually to Dh839m, from Dh384m in the same period in 2021.
“The first half of 2022 has been a potent demonstration of the solid strategic direction enacted by the executive tea ," Sheikh Saqer bin Humaid, chairman of Julphar's board, said.
“Successfully concluding the turnaround plan in the first quarter of 2022 paved the way for the robust results achieved in the second quarter."
"As we look towards the second half of the year, Julphar is in a position of strength and is well placed to achieve sustainable growth."
Julphar, one of the biggest drug manufacturers in the Middle East and Africa, manufactures largely generic drugs, including insulin for diabetics, and a range of personal care products.
Earlier this year, the company unveiled a strategy to achieve sustainable business growth and triple revenue by 2030.
The company — which swung back to profit in 2021 and the first quarter of 2022 after years of losses — is on track to deliver 13 new products by the end of 2022.
Julphar remains on course to deliver its full-year objectives, including growing its market share in existing markets and achieving improvements in profitability as it focuses on economies of scale, cost savings and in operational efficiencies, it said.
“Julphar’s transformational growth strategy and the executive team’s laser focus on returning to profitability have contributed to the strong results,” said chief executive Essam Mohammed.
“As we continue into the next phase of growth, we will expand our geographic reach and our new launches.”
Julphar recently signed agreements to expand its footprint in Latin America and the Commonwealth of Independent States, and entered the second half of 2022 with a focus on growing its reach in Africa.
In June, it signed an agreement with China's Hangzhou Zhongmei Huadong Pharmaceutical to develop and commercialise products for the Mena region.
The company is also investing in an in-house research and development unit to develop and launch more than 80 new products in the coming years.
