CEO of Gulf Pharmaceutical Industries reports 'disappointing' second quarter net loss, remains cautious in outlook
Gulf Pharmaceutical Industries, one of the largest pharmaceutical manufacturers in the Middle East and Africa, has reported a "disappointing" net loss in the second quarter of 2019.
The loss of AED96 million ($26.1 million) on sales of AED100 million in the three months from April to June come as the company, better known as Julphar, continues to be impacted by a ban on its products in Saudi Arabia.
Jerome Carle, CEO of Julphar, said: "Our second quarter performance was disappointing primarily due to continued challenges in Saudi Arabia coupled with unfavourable conditions in some of our key markets. However, we have started a transformation that will make us stronger in the long run.
"We remain cautious in our outlook but we are confident we are taking the right actions to ensure a full recovery and achieve our long term objectives."
Julphar said its revenue was negatively impacted by the Saudi Food & Drug Authority's temporary ban on the export of the company's products to the kingdom in September 2018.
Carle said as a result the company's management has focused on cost reductions and has taken several actions to strengthen the organisation and maximise cash flows.
Last month, Julphar announced the appointment of new executive employees to help guide the company towards profitability and long-term success.
It was reported that Julphar had also cut about 150 jobs, or 3 percent of its workforce.
Julphar employs more than 5,000 people and distributes pharmaceutical products to more than 50 countries on five continents.
It has 16 internationally accredited facilities in Africa, Middle East and Asia that produce more than a million boxes of medicine a day.