Gulf Pharmaceutical Industries (Julphar) on Friday announced a net revenue of AED273.4 million from continuing operations in Q1 2026, reflecting a year-on-year decrease of 3.0 percent, while delivering improved profitability.
EBITDA from continuing operations amounted to AED44.5 million, representing an increase of 69.8 percent, with EBITDA margin improving to 16.3 percent from 9.3 percent in the prior‑year period.
Operating profit rose to AED31.7 million, while net profit from continuing operations increased to AED28.4 million, compared to AED1.5 million in Q1 2025.
Gross profit increased 10.3 percent year‑on‑year to AED119.7 million, with gross margin improving to 43.8 percent compared to 38.5 percent in Q1 2025.
During the quarter, the group maintained operational continuity and financial discipline amid a challenging operating environment shaped by regional developments and supply chain disruptions, it said.
The decline in revenue was mainly linked to shipment timing, while the group continues to see good underlying demand for its products across most of its operating markets, supported by adequate in‑market inventory levels to meet patient needs. Profitability improved materially during the quarter, supported by margin expansion, reduced finance costs, and disciplined cost management.
The improvement in profitability was primarily driven by higher gross margins, lower operating expenses, and a significant reduction in finance costs following the deleveraging actions completed in 2025. Finance costs declined by 78.4 percent year‑on‑year during the quarter, it said.
“Despite a challenging operating environment, Julphar continued to demonstrate resilience in the first quarter through disciplined execution and a clear focus on financial and operational fundamentals," said Sheikh Saqer bin Humaid Al Qasimi, Chairman of the Board of Julphar.
He added that the improvement in profitability and margin performance reflects the Group’s commitment to prudent management, effective governance, and supporting the continuity and sustainability of its operations.
Basel Ziyadeh, Chief Executive Officer of Julphar, said: “Julphar’s first‑quarter performance reflects the strength and adaptability of our core operations. Despite external challenges, including regional developments, supply chain disruptions, and inflationary cost pressures, we delivered improved margins and strong profitability through disciplined execution, effective cost management, and enhanced operational efficiency.” - TradeArabia News Service