Ibn Sina Pharma plans to invest over US$6.47M in Egypt after profit rise

EGYPT – Ibn Sina Pharma has decided to invest 200 million Egyptian pounds (over US$6.4 million) in the Arab Republic of Egypt over the next year.

In a press statement published by DNE, Mohamed Shawky, the Head of Ibn Sina Pharma’s Investor Relations Sector, said: “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.”

This expansion strategy comes after Ibnsina Pharma reported a revenue of EGP 72.554 million (US$2.36 million) for the first quarter of 2023, an increase of 22.18% year-on-year (YoY).

Moreover, the company topped the list of drug distribution companies in Egypt in 2023 per publicly available data shared by IQVIA, a global provider of advanced analytics.

The company has a market share of 23.7 % in the distribution of the Egyptian pharmaceutical market according to IQVIA.

For his part, Mohamed Shawky stated: “Ibn Sina Pharma holds about 24% of the Egyptian market and has a business volume of 24 billion Egyptian pounds.”

He confirmed that the company’s earnings before interest, taxes, and depreciation (EBITDA) increased by 101% during the first nine months of 2023, reaching EGP 23.8 billion (US$770 million), compared to EGP 15.8 billion (US$510 million) during the same period in 2022.

Shawky further stated 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 173.6 million (US$5.62 million), compared to EGP 118.4 million (US$3.83 million) during the same period in 2022,” Shanky told DNE.

In a pioneering move to increase the company’s market share and profitability, Ibn Sina Pharma is preparing to make additional investments in the Arab Republic of Egypt.

Ibn Sina Pharma is increasing its dominance of industry market share as Egypt’s pharmaceutical sector is poised for significant growth, with the potential to achieve US$5 billion in exports by 2030.

“The company’s net profit before interest grew by 101% in September 2023, reaching EGP 996.7 million (US$32.26 million), compared to EGP 495 million (US$16.02 million) during the same period in 2022. However, the increase in financing costs hurt the net profit margin,” explained Mohamed Shawky.

The total investment plan is over US$6.47 million in Egypt, which will be used in the marketing and distribution of the company’s pharmaceutical products throughout the country.

For 2024, Ibn Sina Pharma plans to not only expand its countrywide network of branches, which currently stands at 71, but also to upgrade its technological infrastructure.

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