Ibnsina Pharma achieved net revenues of EGP 2.9bn, up 51.1% year-over-year in the first quarter of 2018, the company announced on Monday. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) recorded a 69.4% year-over-year increase to reach EGP 92.3m in Q1 2018. Meanwhile, the net profit registered at EGP 28m in Q1 2018, representing a year-over-year growth of 46.3%. Furthermore, Ibsina Pharma's gross profit recorded EGP 215.7m in Q1 2018, up 44.9% year-over-year and yielding a gross profit margin of 7.5% during the period. The slight contraction in gross processing margin between Q1 2017 and Q1 2018 was due to the management's decision to reduce cash purchases during the quarter to minimise financial expenses, following successive hikes implemented by the Central Bank of Egypt throughout 2017. Following a record year in the pharmaceutical market with EGP 49.6bn in end-user sales in 2017, Q1 2018 showed sustained growth momentum despite the economic challenges and uncertainty in the Egyptian market. Moreover, end-user sales grew by 30.8% year-over-year, from EGP 11.1bn in Q1 2017 to EGP 14.6bn Q1 2018. Ibnsina Pharma was the fastest growing pharmaceutical distributor in Egypt with the second-largest market share. The company's growth surpassed the total market in terms of sales by a spread of at least 12% over the last three years. Q1 2018 marked the largest spread, with growth exceeding that of the market by 19% thanks to its value-based differentiated strategy. On the other hand, the company's total capital expenditures amounted to EGP 45m in Q1 2018, directed at investments in new distribution sites as well as upgrades to existing ones. The company's client pharmacies network was the main driver behind achieved sales, while wholesalers contributed 20% to total revenue growth, according to the statement. Wholesalers were also the fastest growing segment in Q1 2018, (86.1% revenue growth year-over-year), followed by third-party and other (67.4% revenue growth year-over-year) and personal care (63.6% revenue growth year-over-year).
