Jamjoom Pharmaceuticals Factory Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 (Nine Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 292.6 | 237.8 | 23.04 | 298.4 | -1.94 |
| Gross Profit (Loss) | 187.2 | 151.1 | 23.89 | 198.1 | -5.5 |
| Operational Profit (Loss) | 84.7 | 60 | 41.17 | 92.6 | -8.53 |
| Net Profit (Loss) after Zakat and Tax | 77.2 | 45.6 | 69.3 | 86.3 | -10.54 |
| Total Comprehensive Income | 76.4 | 45.6 | 67.54 | 85.5 | -10.64 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 893 | 719.8 | 24.06 |
| Gross Profit (Loss) | 584.9 | 468.5 | 24.84 |
| Operational Profit (Loss) | 271.1 | 195.1 | 38.95 |
| Net Profit (Loss) after Zakat and Tax | 247.9 | 139.6 | 77.58 |
| Total Comprehensive Income | 215 | 137 | 56.93 |
| Total Share Holders Equity (after Deducting Minority Equity) | 1,361.3 | 1,283.7 | 6.04 |
| Profit (Loss) per Share | 3.54 | 1.99 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The Company’s net profit in the current quarter increased by 69.4% to reach SAR 77.2 million compared to SAR 45.6 million for the same quarter last year.
This increase was mainly driven by:
1. Revenue increase of 23.1% due to increased sales volume, new product launches; and the price adjustment for some of its key products that was obtained in 2023
2. A lower than revenue increase in Selling and Distribution (S&D) expenses (by 15.0%) vs 3Q 2022, mainly resulting from efficient S&D spending in addition to the impact of modification of commercial terms of a key distributor’s agreement in the latter part of last year.
3. Finance costs reduced by 92.2% vs 3Q 2022 as the financial charges of 3Q 2022 included a currency devaluation loss on the inter-company loan provided to the Company’s fully owned subsidiary in Egypt. In 4Q 2022, this loan was converted to a sub-ordinated perpetual equity instrument. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | Net profit decreased by 10.5% to reach SAR 77.2m in 3Q 2023 compared to SAR 86.3m in 2Q 2023. The slight decrease in quarterly revenue by 1.9% contributed to this outcome. Additionally, gross profit margin saw a reduction from 66.4% in 2Q 2023 to 64.0% in 3Q 2023, due to a change in the product and market mix and a seasonality effect from the summer holidays in the main market of KSA during July and August. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The Company’s net profit in the current period increased by 77.6% to reach SAR 247.9 million in 9M 2023 compared to SAR 139.6m for the same period last year.
This increase was mainly driven by:
1. Revenue growth of 24.1% due to higher sales volume, new product launches; and the price adjustment for some of its key products that was obtained in 2023
2. S&D expenses rose by 12.1%, despite the higher increase in revenue, due to cost efficiency, economies of scale from the growth of revenue and modification of commercial terms of a key distributor’s agreement in the latter part of last year.
3. Finance costs reduced by 94.6% during 9M 2023 as finance costs for 9M 2022 included the currency devaluation loss on the inter-company loan granted to the Company’s fully owned subsidiary in Egypt. In 4Q 2022, this loan was converted to a sub-ordinated perpetual equity instrument, therefore any currency devaluation beyond 4Q 2022 will not impact the Company’s Net Profit with regards to this arrangement with the subsidiary. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform to the current period’s presentation. |
| Additional Information | General Comments:
During the 3rd Quarter of 2023, the Egypt manufacturing facility has become operational and commenced commercial production. Jamjoom Pharma paid a dividend of SAR 1 per share. And invested c.SAR 30 million in its Algerian Joint Venture to partially finance the acquisition of a manufacturing facility in Algeria.
The Company’s financial position continues to be strong with zero debt. As of 30 September 2023, the Company had a cash balance of SAR 93.2 million, which represented a decrease of 34.0% compared to the balance at year end 2022.
Significant changes in the Statement of Financial Position as at 30 September 2023 from 31 December 2022 were noted as follows:
1.Non-current assets increased by 2.8% driven mainly due to the investment in the Company’s JV in Algeria.
2. Current assets increased by 33.5% mainly due to an increase in trade receivables and inventories stemming from revenue and production growth.
3. Current liabilities increased by 79.1% mainly due to an increase in accruals and other current liabilities due to accruals relating to customer deals being settled at the year end.
4.Non-current liabilities increased by 8.7% mainly due to an increase in provision for employee benefits.
5.Shareholders' equity increased by 11.9% driven by the increase in retained earnings partially offset by decrease in the foreign currency reserve and dividends distributed during the year. |
| Attached Documents |  |
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