Jamjoom Pharma ups profit margin forecast to 33%: CEO

Argaam

4 days ago

Tarek Youssef Hosny, CEO of Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma), said he expects the company to continue growth and achieve added value, saying that the forecast for the EBITDA margin for 2025 was raised to a range between 31.5-33%, from previous estimates of 30-31.5%, following the company's performance in the first half of the year.
In an interview with Argaam, the top executive said that Jamjoom Pharma maintained its exceptional performance during H1 2025, attributing the continued growth to the strong momentum achieved in the first quarter, reflecting the resilience of its strategy in a dynamic operating environment, by focusing on strategic brands, improved operational efficiency, and disciplined cost management.
He indicated that enhanced operational efficiency in research and development, manufacturing, and distribution contributed to boost profitability while maintaining a commitment to innovation and quality, adding that the company also continued to strengthen its key partnerships, launch new products, and continue its sustainability efforts.
Meanwhile, the company's sales witnessed strong momentum across key markets during H1 2025. The Saudi market continued to drive growth, with revenues rising by 20.6% to SAR 577.8 million, accounting for more than two-thirds of the company's total revenue. Gulf markets accounted for SAR 107.7 million, led by the UAE and Oman, while sales in the Iraqi market grew by 27.3% to SAR 83.2 million, according to the top executive.
He also highlighted that revenue from the Egyptian market grew by 12.8% in Egyptian pound, but declined when converted to Saudi riyals due to the depreciation of the Egyptian pound. Meanwhile, revenue from other export markets amounted to
SAR 48.4 million, down 10% due to regional tensions in Jordan and Lebanon.
However, export growth in Morocco and Libya helped mitigate the negative impact.
Hosny also stated that the company is currently re-evaluating its distribution channels to ensure margin sustainability and achieve lower-risk growth in those markets.
The company's H1 revenue was backed by several therapeutic areas, most notably general medicine, which grew by 37.7%. The ophthalmology and dermatology segments together accounted for 43.1% of topline. The diabetes drug portfolio grew by 71.5%, while cardiovascular treatments saw a 31.1% increase in sales, he added.
Total production at the company's three plants reached 86 million units during H1, topped by the Jeddah plant with 68 million units at a utilization rate of 90.5%.
Production at the Egypt plant grew by 54.1%, reaching 14 million units. The new sterile products plant in Jeddah continued its expansion, doubling its annual output to 4 million units with a utilization rate of 32.2%, which supported supplies in ophthalmology and sterile product segments, according to the CEO.
As regards the Algeria project, Hosny said the project contributed SAR 6.5 million to H1 profit, as part of the company's expansion strategy in North Africa, while leveraging local manufacturing to enhance efficiency and reduce costs. He noted that this provides a solid platform for future expansion into neighboring North and West African markets.
He also highlighted that the company will continue expanding into high-value therapeutic areas, accelerating regional expansion initiatives, and strategically investing in research and development and business alliances, especially in its core focus areas, with disciplined spending and a scalable platform.