ALGERIA – The board of Jamjoom Pharmaceuticals Factory Company (Jamjoom Pharma) has agreed to provide a corporate guarantee to support the issuance of a credit facility for its joint venture (JV) in Algeria, Jamjoom Algeria Lil Dawa SPA.
This move aligns with Saudi Law and is in proportion to the company’s shareholding in the JV. Hence, Jamjoom Pharma will be guaranteeing SAR 21.75 million (US$5.7M).
The facility will be used to finance the addition of a special production line for Ophthalmology products to enable the existing facility in Algeria to boost the company’s strategic objectives.
This initiative is part of Jamjoom Pharma’s broader strategy to enhance its operations and expand its product offerings.
Jamjoom Pharma holds a 49% stake in Jamjoom Algeria’s share capital. The company’s commitment to this joint venture underscores its commitment to expanding its presence in the Algerian market and contributing to the country’s healthcare sector.
In the first quarter (Q1) of 2024, Jamjoom Pharma logged net profits valued at SAR 102.96 million (US$27.4M), an annual rise of 22% from SAR 84.40 million (US$22.5M).
This significant increase in profitability underscores the company’s robust financial performance and its ability to navigate market challenges effectively.
The corporate guarantee issued by Jamjoom Pharma is a crucial step in supporting the growth of its Algerian operations.
The medium-term loan worth SAR 44.40 million (US$11.8M )will be provided by Société Générale Algérie SPA to Jamjoom Algeria.
This financial support will enable the JV to invest in new production capabilities, thereby enhancing its competitiveness and market reach.
Jamjoom Pharma’s decision to provide a corporate guarantee for its Algerian JV is a strategic move aimed at ensuring the long-term success of its operations in Algeria.
By guaranteeing a significant portion of the loan, Jamjoom Pharma demonstrates its confidence in the JV’s ability to generate returns and contribute to the company’s overall growth.
In conclusion, Jamjoom Pharma’s commitment to its Algerian JV is a testament to its commitment to expanding its global presence and enhancing its product offerings.
The company’s robust financial performance and strategic investments in new production lines position it well for future growth and success.
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