Jamjoom Pharma ups profit margin forecast to 33%: CEO

Tarek Youssef Hosny, CEO of Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma)

Tarek Youssef Hosny, CEO of Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) expects the company to continue growing and achieve added value.

The forecast for the earnings before interest, taxes, depreciation, and amortization (EBITDA) margin for 2025 has been raised to between 31.5 and 33%, from previous estimates of 30-31.5%, following the growth recorded in the first half of the year, he told Argaam in an interview.

The CEO said that Jamjoom Pharma maintained its exceptional performance during H1 2025, attributing the growth to the strong momentum achieved in the first quarter, reflecting the resilience of its strategy in a dynamic operating environment. This was achieved by focusing on strategic brands, improved operational efficiency, and disciplined cost management.

He indicated that improved operational efficiency in research and development (R&D), manufacturing, and distribution contributed to boost profitability, while maintaining a commitment to innovation and quality. The company also continued to strengthen its key partnerships, launch new products, and drive its sustainability efforts.

Meanwhile, the company’s sales witnessed strong momentum across key markets during H1 2025. The Saudi market continued to drive growth, with revenues rising by 20.6% to SAR 577.8 million, accounting for more than two-thirds of the company’s total revenue. The Gulf markets accounted for SAR 107.7 million, led by the UAE and Oman, while sales in the Iraqi market grew by 27.3% to SAR 83.2 million, Hosny said.

He disclosed that revenue from the Egyptian market grew by 12.8% in Egyptian pounds, but declined when converted to Saudi riyals due to the depreciation of the Egyptian pound.

Meanwhile, revenue from other export markets totalled SAR 48.4 million, down 10% due to regional tensions in Jordan and Lebanon. However, export growth in Morocco and Libya helped mitigate the negative impact.

Hosny also stated that the company is currently re-evaluating its distribution channels to ensure sustainable margins and achieve lower-risk growth in these markets.

Jamjoom Pharma’s H1 2025 revenue was backed by several therapeutic areas, most notably general medicine, which grew by 37.7%. The ophthalmology and dermatology segments together accounted for 43.1% of the topline. The diabetes drug portfolio grew by 71.5%, while the cardiovascular treatments segment increased 31.1%, he added.

Total production at the company’s three plants reached 86 million units during H1 2025, with the Jeddah plan leading the way with 68 million units at a utilization rate of 90.5%. Production at the Egypt plant grew by 54.1%, reaching 14 million units.  The new sterile products plant in Jeddah continued its expansion, doubling its annual output to 4 million units with a utilization rate of 32.2%, which supported supplies in ophthalmology and sterile product segments.

Hosny said the Algeria project contributed SAR 6.5 million to H1 2025 profit, leveraging local manufacturing to enhance efficiency and reduce costs. He noted that this provides a solid platform for future expansion into neighboring North and West African markets.

He also highlighted that Jamjoom Pharma will continue expanding into high-value therapeutic areas, accelerating regional expansion initiatives, and strategically investing in R&D and business alliances, especially in its core focus areas, with disciplined spending and a scalable platform.

According to data available with Argaam, the company reported a net profit of SAR 289.1 million for H1 2025, compared to SAR 209.9 million in the same period in 2024. Q2 net profit reached SAR 132 million.