Ibnsina Pharma, Egypt’s fastest-growing and second-largest pharmaceutical distributor achieved EGP3.7bn in net revenues, marking 29.3% increase, according to the audited results for the 3-month period ending 31 March 2019, 1Q19 releesed on Sunday.
The company posted gross profit of EGP 292.7m and gross profit margin of 7.85% in 1Q19, up approximately 0.4 percentage points from 7.49% in 1Q18.
“Ibnsina Pharma has started 2019 on strong footing, putting us in pole position to continue our rapid organic growth trajectory,” said Omar Abdel Gawad, Co-CEO of Ibnsina Pharma. “Ibnsina Pharma’s share of the total pharma market expand from 12.5% five years ago to 19.7% as of 31 March 2019. The
company’s ability to keep closely abreast of trends affecting Egypt’s pharmaceuticals market allows us to move quickly in refining our value-based differentiation strategy. This approach to value creation has proved its ability to generate durable success and has seen our EBITDA climb 50% year-on-year to record EGP 138.6 million for Q1 2019,” he concluded.
“We continue to explore opportunities for expansion and allocating the resources necessary to sustain our market-beating performance,” said Mahmoud Abdel Gawad, Co-CEO of Ibnsina Pharma. “Our market is rapidly growing , moving forward Ibnsina Pharma’s ability to cope with the challenges posed by the new competitive landscape and to continue delivering the results investors have come to expect will depend above all on the quality of our assets and how we go about generating and leveraging economies of scale,” Mahmoud concluded.
Furthermore, the results indicate that economies of scale and cost efficiencies lead to a further expansion at the Earnings before interest, tax, depreciation and amortization (EBITDA)
level, which grew by 50.1% year-on-year to EGP 138.6m in 1Q19. This represented an increase in the EBITDA margin of 0.5 percentage points to 3.7% during the same period.
Margin expansion trickled down to operating profit, which recorded 71.9m in 1Q19, up a remarkable 42.6% year-on-year and yielding an operating profit margin of 1.9%. Net profit recorded EGP 40.9m in 1Q19, growing at 46.6% year-on-year to yield a net profit margin of 1.1%. Growth in the company’s bottom line camedespite one-off charges of EGP 15m incurred during the period versus EGP 12m last year .
The quarter saw Ibnsina Pharma serve 42,143 customers across Egypt and make 2
million deliveries, up 5.3% year-on-year.