Ibn Sina Pharma, Egypt’s largest pharmaceutical distributor, has announced its plans to invest EGP 200m in 2024. The company aims to expand its network of branches, which currently stands at 71, and to upgrade its technological infrastructure. These investments are expected to increase the company’s market share and profitability in the coming period.
According to Mohamed Shawky, the head of the company’s Investor Relations Sector, Ibn Sina Pharma holds about 24% of the Egyptian market and has a business volume of EGP 24bn. He told DNE that the company will finance its new investments by improving its cash receipts cycle, which was reduced to one day in September 2023, compared to nine days in September 2022.
Shawky also said that the company’s net profit before interest grew by 101% in September 2023, reaching EGP 996.7m, compared to EGP 495m during the same period in 2022. However, he noted that the increase in financing costs hurt the net profit margin.
The company’s earnings before interest, taxes, and depreciation (EBITDA) also increased by 101% during the first nine months of 2023, reaching EGP 23.8bn, compared to EGP 15.8bn during the same period in 2022.
Shawky added that the company has shifted its focus to imported products, which have a higher profit margin of 13%, compared to 8% for local products.
The company’s consolidated net profits rose by 46% during the first nine months of 2023, reaching EGP 173.6m, compared to EGP 118.4m during the same period in 2022.