Latest news with #JamjoomPharmaceuticalsFactoryCo
Argaam
6 days ago
- Business
- Argaam
Jamjoom Pharma ups profit margin forecast to 33%: CEO
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.
Argaam
26-02-2025
- Business
- Argaam
Jamjoom Pharma 2024 revenue growth reflects operational improvements: CEO
Tarek Hosni, CEO of Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma), said the company generated revenues of SAR 1.3 billion in 2024, marking a 20% year-on-year (YoY) increase, driven by operational improvements and strong sales of high-margin products. In a meeting with investors and financial analysts, Hosni said the EBITDA margin hit 33.2%, generating SAR 437 million—up 27% from the previous year. Net profit stood at SAR 357 million, which could have reached SAR 370 million if not for the precautionary provisions taken by the company. Jamjoom Pharma launched nine new products in 2024 across several therapeutic areas, including consumer health and antibiotics, the top executive said. He added that the company's strategy is to launch six to 10 products annually to strengthen its market share. Hosni said the company is expanding its presence in the biologics and biosimilars sector while exploring new opportunities in weight-loss and type 2 diabetes treatments. Additionally, Jamjoom Pharma plans to open new manufacturing facilities. The company doubled its production capacity over the past three years, increasing from 88 million units in 2021 to an expected 170 million in 2024. In addition, it continues to enhance production efficiency while maintaining capital expenditures within the target range of 4% to 6% of revenue. The firm also saw an 11% growth in Saudi Arabia, the GCC (30%), Iraq (11%), North Africa (22%), and Egypt (19%), the CEO said, noting that all key markets achieved double-digit growth rates. During the meeting, CFO Anwer Mohiuddin highlighted that production and raw material costs increased by 23% due to higher manufacturing volumes across all facilities. However, the company effectively managed costs, helping to sustain profitability levels. Further, Hosni said Jamjoom Pharma reviewed its strategy at the end of 2024 and set a new vision focused on expanding in the GCC, Asia, and North Africa. The company aims to make strategic investments to acquire market share and strengthen its leadership in key sectors. The management is committed to achieving a 12% annual revenue growth from 2025 to 2027 while maintaining a 30% profit margin. It also plans to continue distributing 50% to 60% of profits on a semi-annual basis.
