Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda), posted a net profit of EGP 82.4m in fiscal year 2019 (FY19), down 36.1% year-on-year (YoY), with a corresponding net profit margin of 9.2% against a net profit margin of 16.0% in FY18. The fall in net profit follows the drop in EBITDA and EBITDA margins in addition to increased finance expenses between the two periods
Rameda announces its consolidated full-year and fourth quarter (Q4) results for 2019, with revenues up by 11.0% YoY to record EGP 894.0m in FY19, driven mainly by the launch of new molecules and an overall improvement in average prices.
“2019 was a landmark year for Rameda, with significant milestones achieved positioning the Group to fully capture the growth and evolving demand dynamics of Egypt’s ever-growing pharmaceutical industry,” commented Dr. Amr Morsy, CEO.
“The year ended with the Group’s successful listing on the Egyptian Stock Exchange in December 2019 and the completion of a capital increase for EGP 582.5 million that will enable Rameda to accelerate its growth potential,” he said.“2019 also saw us execute the largest upgrades in Rameda’s more than three-decade history, with EGP 250 million invested during the last three years across the Group’s three factories. The main objectives of our upgrades were to de-risk existing production lines, add production capabilities for strategic products and comply with the latest Good Manufacturing Practices (GMP) requirements. With their completion, our production capacity has grown by 63% by year-end 2019,” Dr. Morsy added
“We are particularly pleased with our financial performance during the period, despite the significant disruptions in production volumes resulting from the upgrades to our manufacturing facility, which took place during the first nine months of 2019,” said Mahmoud Fayek, Chief Financial Officer.
“Our top line grew by 11.0% YoY to EGP 894.0m in FY19, driven by private sales on the back of an improvement in our portfolio mix and despite disruptions in the supply of our outsourced lyophilised product. However, with the commissioning of our two new lyophilised lines in November 2019, we will now be manufacturing this product fully inhouse. Although the disruption also affected our profitability during the year, with our adjusted EBITDA down by 9.7% YoY, the resumption of full operations upon the completion of these upgrades during the last quarter of 2019 saw a significant improvement in both revenue growth and margins during the period, with 4Q19 revenues up 17.9% YoY and an adjusted EBITDA margin of 36.9% YoY. We look forward to realising the full impact of our upgraded facility and enhanced capacity from 2020 onward,” added Mahmoud.