The Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents company (Rameda) has reported top line and net income growth at 22% and 196% respectively in the first quarter (Q1) of 2020.
The company’s exceptional performance saw revenue grow by 22.4% y-o-y to EGP 232.4mn in Q1 of 2020, on the back of double-digit growth across all of its verticals.
The exception to this came in the company’s exports, which contracted due to the ongoing restrictions due to the coronavirus (COVID-19) pandemic.
Revenue growth was primarily driven by improvements in average price points coupled with a return to normalised volumes following the November 2019 completion of the company’s facility upgrade and expansion. Rameda is now able to fully utilise its facility with minimal disruption.
It recorded a gross profit of EGP 106.2m in Q1 of 2020, with a GP margin of 45.7%, up 4.5 percentage points from 41.1% in Q1 of 2019.
“Rameda has ended the first quarter of what promises to be a highly eventful year at the company,” said Rameda CEO Dr Amr Morsy, adding “External circumstances are driving a rapid evolution of our operating environment and necessitating even greater agility and readiness to innovate.”
Morsy also said, “Our industry is a highly globalised one, and despite the disruptions of API supply across the global pharmaceutical industry wrought by the coronavirus pandemic, Rameda’s financial results met expectations in Q1 of 2020.”
Rameda has focused on being as proactive as possible in facing the crisis. This has included putting in place a targeted set of policies ensuring its ability to continue providing patients with their much-needed medication.
The company has secured 90% of the needed APIs to fulfil its expected production requirements until the end of Q3 of 2020, Morsy added.
Rameda Chief Financial Officer, Mahmoud Fayek, said, “Despite the stresses placed on the Egyptian and global markets during the coronavirus pandemic and its associated economic impacts, recovering volumes after last year’s production disruptions combined with improvements in our average price points delivered solid top-line growth for Rameda during Q1 of 2020.”
Fayek added that revenues had exceeded the company’s budgeted figure for the period, coming in at EGP 232.4m, on the back of broad-based growth across the company’s verticals barring export sales.
“The management’s successful portfolio enhancement strategy to promote more recently launched and recently acquired high value molecules whilst improving the product portfolio mix led to a healthy revenue growth,” Fayek said, ”Rameda’s bottom line nearly tripled during the period, booking EGP 23.9m for Q1 of 2020, reflecting enhanced operating margins and efficiency resulting from treasury operations, with net profit margin showing exceptional growth to 10.3% from the 4.2% of last year.”
