Jamjoom Pharma announced strong financial results for the fiscal year ending December 31, 2023, recording net profits of SAR 463.8 million. This represents a significant 30% increase compared to the previous year's profits of SAR 356.5 million in 2022. This outstanding performance reflects the company's sustained growth and its ability to strengthen its position in the Saudi and regional pharmaceutical markets.
Background on the company and its market growth
Founded in Jeddah, Saudi Arabia in 2000, Jamjoom Pharma quickly became one of the leading pharmaceutical companies in the Middle East and North Africa region. The company reached a historic milestone in June 2023 with its listing on the Saudi Stock Exchange (Tadawul), a move that garnered significant investor interest and enhanced its transparency and governance. Jamjoom Pharma focuses on developing, manufacturing, and marketing a wide range of high-quality pharmaceutical products, contributing to a strong reputation and the trust of consumers and healthcare professionals.
Key factors behind profit growth
According to the official statement published by the company on the Saudi Stock Exchange (Tadawul) website, this significant increase in profits is attributed to several complementary factors. Foremost among these is revenue growth, driven by increased demand for the company's products and an improved sales mix focused on higher-margin products. Strong operating leverage also contributed to improved gross profit margins, meaning the company successfully increased its production and sales efficiently without a corresponding increase in fixed costs. Furthermore, profits were boosted by positive net finance income and the share of profits realized from the successful joint venture in Algeria, reflecting the success of the company's regional expansion strategy. Expected credit loss provisions also decreased, and the company did not incur any exceptional charges that had impacted the previous year's results.
Economic impact and dividend distributions
This strong financial performance by Jamjoom Pharma reflects the dynamism of the healthcare and pharmaceutical sector in the Kingdom, a key pillar of Saudi Vision 2030, which aims to diversify the economy and localize vital industries. Based on these positive results, the company's board of directors has recommended an interim cash dividend for the second half of 2023, underscoring the company's commitment to delivering attractive returns to its investors. The total recommended dividend is SAR 140 million, to be distributed across 70 million eligible shares. This translates to a dividend of SAR 2 per share, representing 20% of the share's par value. The entitlement date for shareholders registered as of March 1, 2024, is set for March 15, 2024, with the dividend to be paid on that date.
