Ras Al Khaimah-based Gulf Pharmaceutical Industries (Julphar), one of the UAE’s biggest pharmaceutical companies, improved on its revenue and significantly strengthened its balance sheet by bringing down its debts in the first quarter of 2025.
The company said its first quarter net revenue was AED359.2 million (US$97.8 million) showing a 6.7 per cent growth (9.6 per cent at constant rate) from AED336.8 million (US$91.7 million) and resulting in EBITDA growth from continuing operations of 9.0 per cent – from AED46.7 million (US$12.7 million) to AED50.9 million (US$13.86 million).
EBITDA margin improved to 14.2 per cent, up from 13.9 per cent in the same period last year, underscoring the company’s ongoing focus on operational efficiency and margin enhancement.
There was a 7 per cent increase in gross profit, and it maintained a gross margin of 43 per cent.
Operating income grew to AED36.3 million (US$9.9 million) as against AED30.5 million (US$8.3 million). Net income from continued operations experienced a strong improvement, reaching AED21.7 million (US$5.9 million), an increase of AED7.2 million (US$1.96 million) in the corresponding quarter in 2024.
Total net profit reached AED140.9 million (US$38.4 million), driven by strong underlying performance during the period and gains from the divestment of Zahrat Al Rawdah Pharmacies LLC, its wholly owned retail pharmacy subsidiary, resulted in a one-time capital gain of AED118.7 million (US$32.3 million).
Reduced debt
Julphar’s total bank borrowings reduced by AED383.2 million (US$104.34 million), bringing its total interest-bearing liabilities to AED529.9 million (US$144.3 million). Total equity increased to AED948.7 million (US$258.3 million), up from AED809.6 million (US$220.45 million) at the end of 2024, reducing accumulated losses from AED305 million (US$83 million) to AED164.1 million (US$44.68 million).
The company also improved its product mix, launching five new products, including three insulin analogues in UAE. It also secured 11 new regulatory approvals across regional markets.
Julphar entered into an exclusive licensing agreement with Dong-A ST, one of South Korea’s most reputable pharmaceutical companies, to introduce Darbepoetin biosimilar in the MENA region. Darbepoetin Alfa is a medication that helps the body produce more red blood cells to treat anaemia caused by kidney failure or chemotherapy.
Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board, commented: “Serving millions of patients across therapeutic areas, we are confident that our growth mindset and focus on innovation, collaboration and geographical expansion will help us deliver continued positive impact to the healthcare sector and to the knowledge economy in the GCC and beyond.
“Our Growth Strategy 2030 guides our commitment to deliver excellence in the form of first-to-market products and value-adding medicines.”
The company said it remains focused on accelerating its growth strategy by expanding its footprint in core markets and fostering innovation through continued investment in high-value, differentiated products while maintaining financial discipline and a strong capital structure.
Basel Ziyadeh, Chief Executive Officer, Julphar, added: “We are entering a phase of accelerated growth, driven by disciplined execution and an unwavering commitment to innovation. Our focus is on becoming a more agile and efficient organisation while solidifying the foundation for sustained, long-term growth.
“With clear strategic priorities, we are taking decisive actions to create long-term value and establish market leadership. This includes significant investments in our manufacturing facilities in the UAE in addition to our recently announced investment in Saudi Arabia, and in a strong R&D pipeline.”
