Julphar
julphar.net
Discussion report and analysis of the board of directors of the listed
public shareholding company
Date 11 May 2023
Name of the Listed Company Gulf Pharmaceutical Industries PSC Julphar
The period of the financial statements
Quarter 1 - 2023
covered by the report
1. Net sales reached 454.1 mAED, an increase of 8.5%
as compared to Q1 2022.
Overview of the main results during the
2. EBITDA from continuing operations for QI 2023 is
financial period
45.4 mAED, comparing to QI 2022 EBITDA of 40.0
mAED.
Securities issued during the financial
AED nil
period
1. Continued and increased focus on the development
of the Company's product pipeline
Summary of the most important non-
2. Successful licensing arrangements for the co­
financial eventsand developments
development of products
during the financial period
3. Approval of new products launches in line with the
strategic roadmap
1. The operational performance of the Company has
showing continued positive trend while
Summary of operational performance
overcoming the challenges.
during the financial period
2. The Company's strong focus on the output
efficiency continues.
QI'23 QT22
Net sales (nAED) 454.1 418.6
Gross profit (mAED) 138.3 130.6
Summary of profit and loss during the Gross profit (%) 30.5% 31.2%
financial period EBITDA from continuing 45.4 40.0
operations (mAED)
EBITDA from continuing 10.0% 9.6%
operations (% of net sales)
Page 1 of 3
Julphar jlnl? T +971 7 246 1461
POBox 997 Ras Al Khaimah dndll ujoIj 997 i99^io F +971 7 246 2462 <i—UlgxJI >'il rl j n I I j I -s II
United Arab Emirates dniinll cwjoJI oljLopi E info@julphar.net Gulf Pharmaceutical Industriesjulphar.net
Gross margins remained sustained with no significant
fluctuation from the prior period presented.
The total equity has decreased by 19.2 mAED resulting
from the net loss for the period of 3.9 mAED (of which
Summary of financial position as at the 3.1 mAED due to hyperinflation adjustment).
end of the financial period The further decline in total equity was the result of
foreign currency translation reserve by 15.4 mAED
followed by 1.3 mAED loss on cashflow hedge reserve.
Cashflow from operating activities reached 7.2 mAED
during the current period, followed by used in investing
Summary of cash flows during the
activities of 3.7 mAED.
financial period
During the current period, cashflows from financing
activities reached to 37.5 mAED.
Net sales 454.1 mAED
Main performance indicators Gross margins 138.3 mAED
EBITDA from continuing operations 45.4 mAED
The total spending and global demand for medicines
will increase over the next five years to approximately
$1.9 trillion by 2027 (growth rate of 3-6%).
Highest volume growth is expected in Latin America,
Expectations for the sector and the
Asia and Africa, driven by a mix of population growth
company's role in these expectations
and expanded access.
Demand for innovative drugs will drive oncology
spending almost double the current level.
Source; /QW4 Data (Jan 18,2023)
UAE's economy is projected to expand 3.5% (real GDP
growth). Continued government stimulus, strong
Expectations regarding the economy and rebound in tourism and construction etc., helped the
its impact on the company and the sector economic recovery to its pre-COVID-19 crisis level.
Source: Oxford economies, Reuters, IMG, Bloomberg,
Moody's, Central Bank UAE
The future plans for growth of the Company are as
follows:
1. Continued focus on the strategic areas of business
Future plans for growth and changes in 2. Strengthen sales organization in core markets and
operations in future periods increase market share with the existing portfolio
3. New alliances and partnerships to strengthen the
product portfolio of the Company
4. Launch new products in core therapeutic areas
Page 2 of 3
Julphar jldU T +971 7 246 1461
POBox 997 Ras Al Khaimah doiAJI (plj 997 n/jj i^gain F +971 7 246 2462 a^JIgxJI oLcI I 1, JI
United Arab Emirates dmidl ayjoJI aljlopl E info@julphar.net Gulf Pharmaceutical IndustriesJulnhar
julphar.net
5. Invest in capital expenditure to increase production
capacity and new manufacturing technologies and
improve operations efficiency
The Company continues to invest in capital expenditure
for achieving targeted growth and sustained
performance by:
The size and impact of current and
1. Expanding the product portfolio with investing in
projected capital expenditures on the new product dossiers
company 2. Continuing upgrading the existing production
facilities
3. Redesigning current processes to address new
requirements from government authorities
The developments of the The implementation of the following projects have been
implementation of projects, plansand discussed in the Board of Directors' meetings:
1. Growth strategy 2030
transactions and deals that were
2. New products launch to add in the product
discussed by the company's board of
portfolio
directors in the report for the previous
3. License arrangement for co-development of
fiscal year products
The name of the chairman of the
company or the authorized Sheikh Saqr Humaid AlQasimi
signatory
Signature and Date 11 May 2023
______________
Company's Seal _
Page 3 of 3
Julphar jlnh
T +971 7 246 1461
POBox 997 Ras Al Khalmah djopJI 997 iggziia F +971 7 246 2462 O-^JIgaJI i~il rl i n I I j { 1 P II
United Arab Emirates 6-ninJI cuyall oljlojll E info@julphar.net Gulf Pharmaceutical IndustriesJulphar
julphar.nct
Detailed analysis of accumulated losses
Date 11 May2023
Name of the Listed Company Gulf Pharmaceutical Industries PSC (Julphar)
Define the period of the Quarter 1 -2023
financial statements
Value of the Accumulated AED 254.2 million as of 31 March2 023
losses
Accumulated losses to capital 22.0% as of3 1 March 2023
ratio
The main reasons leading to The accumulated losses are from the prior years and the
these accumulated losses and net loss for the period Q1 2023 contributed to the
their history increase in accumulated losses.
Measures to be taken to The following measures were taken:
•
address accumulated losses: Regain market share of core products;
•
Restructure products portfolio and launch new
products in the therapeutic areas in various markets;
and
•
Implement further process improvements and
productivity enhancement initiatives.
Sheikh Saqr Humaid AIQasimi
The Name of the Authorized Signatory
Designation Chairman
Signature and Date 11 May 2023
Company's Seal
Julphar Jlill.;i 1197172461461
POBox 99/ Ros Al Khnimah �1 lJl,llJ 997 J/.JI �g::uo F t97J 7 21f6 246?
United Arab Lmiratcs 6:nl.OJI CljJ_JilJI ulJIDVI E info(fDjL1lpl1or.nel

Sentiment: positive