Ibnsina pharmacy's (ISPH) market share increased to 20.8% in September 2019 (9M19) from 20.2% in the first nine months (9M) of 2018, reinforced by 8.8% year over year (Y-o-Y) increase in deliveries, as all business segments recorded double-digit growth, according to Pharos Holding for financial investment's report. The company achieved revenues of EGP 4.490m in the third quarter of 2019 (3Q19), compared to EGP 3.575m in 3Q18, up approximately by 26% YoY. On an annual basis, ISPH recorded revenues of EGP 12.218m in 9M19, from EGP 9.683m in 9M18 achieving annual growth of 26%. The company achieved net profit of EGP 144m in 3Q19, up from EGP 60m in 2Q19, an approximate increase by 138% quarter over quarter (QoQ). The company posted gross profits of EGP 437m in 3Q19 up from EGP 316m in 2Q19, recording 38% growth, and a gross profit margin of 9.97% in 3Q19 up from 8.26% in 2Q19. In parallel, the 9M19 gross profit margin enhancement to 8.76%, up from 8.56% in 9M18, resulted from lower cash-based and whole sales growth by 22.2% versus higher credit-based and hospital and tender' sales growth by 56% YoY. ISPH's 9M19 capex outlay closed at EGP 221.9m with 52% allocated to new distribution sites by adding three new distribution centres with a total of 62 sites, 10% for new vehicles by adding 16 new vehicles in 9M19, 36% to technology, and 2% to new headquarters. Pharos expects ISPH's market share to grow annually by 1-2 price per share (pps), as they believe that growth would be supported by new medications introduced to market at higher prices, future revisions in current medical prices, and Egypt's low per capita expenditure on pharmaceutical products. It will also increase through an annual population increase of 2%, and the implementation of the universal healthcare system.
