Jamjoom Pharmaceuticals Factory Co. “Jamjoom Pharma” (4015) has raised its growth expectations for the second half of 2024 to a range between 15% and 18%, up from the previous range of 12% to 15%, according to statements made by the company’s CEO, Tarek Youssef Hosni, to “Argaam.”
Optimism
Hosni expects profit margins before interest, taxes, and depreciation to range from 31% to 32.5% during the period from July to December. This is higher than the previous estimates of 30% to 31.5%.
Hosni said his company is confident in its strategy and market position, which will support this momentum.
So what
The increase in Jamjoom Pharma’s growth expectations for the second half of the year comes as a result of its strong performance during the first six months of 2024, during which its net profit rose by approximately 23% YoY, reaching SAR 210 million.
Meanwhile, its net profit for the second quarter grew by around 24% to SAR 107 million.
The Board of Directors recommended distributing SAR 112 million in “interim cash dividends” for the first half, at 1.6 SAR apiece. These dividends will be paid on August 25.
Some context
The CEO of the leading pharmaceutical company in the Middle East and Africa attributed Jamjoom Pharma’s growth in Saudi Arabia to its focus on high-potential products, along with precise demand planning and portfolio optimization.
He also provided more details on the first-half results, as follows:
– The company focuses on maximizing shareholder value through dividend distributions, capital expenditures, and exploring non-organic growth opportunities.
– Beyond annual revenue growth, effective cost control, economies of scale, and process improvements have helped maintain strong profit margins despite external challenges.
– The main factory in Jeddah produced over 72 million units, while the factory in Egypt contributed 9.2 million units.
– Saudi Arabia, the Gulf, Iraq, and Egypt were “key growth markets” for the company, with “strong performance” in ophthalmology and dermatology.
– The diabetes, cardiovascular, and consumer health sectors recorded “exceptional growth.”
Now what
In an interview with “Al Arabiya Business,” Hosni revealed that the company has doubled its production over the last three years, now having four factories.
He noted that the local market represents between 50% and 55% of Jamjoom Pharma’s business volume.
He also mentioned that the company has achieved higher revenues and growth than the market and outperformed key competitors.
Hosni added that the “new factory” in Jeddah will begin actual production and sales at the start of next year.
Regarding Jamjoom Pharma’s production development, Hosny said, “We produced 88 million units in 2021,” which were sold in the market. He hopes to reach 170 million units by the end of this year.”
