Jamjoom Pharma boosts presence in key markets, ramp up production: CEO

Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) delivered a strong start to the year, with revenue growth accelerating by 28% year-on-year (YoY) in Q1 2024, thanks to increased volumes, CEO Tarek Youssef Hosni told Argaam.

 

The company reported industry-leading profitability and returns, he said, citing increased volumes across gastrointestinal, cardiovascular and general medicine portfolios.

 

For more exclusive interviews

 

Further, the company continues to consolidate and grow its market share in the legacy ophthalmology and dermatology segments.

 

Jamjoom’s earnings before interest, tax, depreciation, and amortization (EBITDA) margins exceeded 35% in Q1 2024, marking one of the highest quarterly levels. Net profit margins also reaffirm commitment to cost efficiency and operating excellence.

 

The pharmaceuticals producer recorded growth in its key markets, with up to 25% in Saudi Arabia, 23% in the GCC region, 59% in Iraq and 116% in Egypt, said Hosni, noting that the company bolstered its presence in these markets.

 

Hosni described these markets as “strategic”, where the company invested considerable time and effort to understand the dynamics driving growth and address unmet needs for patients in the region.

 

“We believe that as we diligently ramp up our new facilities, and continue achieving commercial excellence, we can unlock much more growth potential in these markets in the future,” Hosni indicated.

 

The company’s growth in production, excluding the Egypt facility, reached 14%, while Egypt facility contributed nearly 4.7 million units in Q1 2024.

 

“We are strategically ramping up our operations in Egypt and we are already able to fulfill about 40% of the Egyptian market’s demand through local production.”

 

Jamjoom expects to see a significant increase in production in the coming quarters, as it further ramps up operations in Egypt and commences commercial production at the new Jeddah sterile facility. This is in addition to the company’s initiatives to optimize operations through introducing lean manufacturing principles, enhancing supply chain management, automation and efficient resource management.

 

Hosni highlighted the importance of expanding market demand through successful marketing strategies, while constantly educating the market about the company’s products. It also continues to consistently supply the market with high-quality healthcare solutions.

 

“With our recent growth, we have more than doubled our cash balance to SAR 210.5 million. However, we are committed to delivering the growth that we achieve to our shareholders in the most lucrative way possible,” stated Hosni.

 

He added that 50% of this cash balance -pending the approval of the upcoming annual general meeting - will be distributed to shareholders. For the remainder and further cash generated during the year, the company plans to continue giving out 50-60% of net profit as dividends on an interim basis, reinvesting in the business through capex and working capital, as well as remaining on the lookout for inorganic growth options.

 

“We are well equipped to achieve sustainable positive growth in the medium term, as we recently expanded our manufacturing capabilities and product offerings and continued to target the highest levels of commercial excellence.”

 

Jamjoom Pharma is well equipped to achieve sustainable positive growth in the medium term, supported by various external factors, quality manufacturing potential and a distinguished team, he said.

 

The company reported a net profit of SAR 103 million in Q1 2024, compared to SAR 84.4 million a year earlier, data compiled with Argaam showed.