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Abu Dhabi, UAEFriday 14 December 2018

Julphar Q1 profit plummets 58% on revenue drop

The company reported a 21 per cent decline in sales in the first three months of the year

Gulf Pharmaceuticals Julphar saw its first quarter profit plunge on the back of lower sales. Photo by Jeff Topping/The National
Gulf Pharmaceuticals Julphar saw its first quarter profit plunge on the back of lower sales. Photo by Jeff Topping/The National

Julphar, a Ras Al Khaimah-based pharmaceutical company, reported a 58 per cent drop in first quarter net profit on the back of a drop in revenue.

The company said profit for the period fell to Dh18.4 million from the same period a year earlier. Net sales declined 21 per cent to Dh264m in the first three months of the year from the corresponding period in 2017. The company said the results were calculated according to the new accounting standard IFRS 9 and IRS 15.

The company “delivered a good first quarter performance, in line with our internal target,” said Jerome Carle, general manager of Julphar. “In the first three months of 2018, we made significant progress in the UAE and Levant and we resumed our operation in Libya.”

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Mr Carle said that the company, which distributes medicines to over 40 countries, had new product launches in cardiology and respiratory and executed a long-term strategy in consumer healthcare. He also said Julphar is well positioned for a profitable second-quarter and remains focused on delivering shareholder value through organic and strategic growth opportunities.

“In combination with our expansion initiatives in places such as Saudi Arabia and Africa, we believe there are firm drivers for our growth in 2017," he said.

The company also said it plans to launch 25 products in the UAE and register 200 new products in the region. Julphar has thirteen facilities in the UAE and has manufacturing facilities in Ethiopia, Bangladesh and Saudi Arabia.