Ibn Sina Pharma Announces EGP 200 Million Investment Plan for 2024
Ibn Sina Pharma, Egypt's leading pharmaceutical distributor, has revealed its ambitious investment plan of EGP 200 million for the year 2024.
The company's expansion strategy involves increasing the number of its branches, currently standing at 71, and implementing significant technological infrastructure upgrades.
These investments are poised to contribute to the company's anticipated growth in market share and overall profitability in the forthcoming period.
Mohamed Shawky, the head of Ibn Sina Pharma's Investor Relations Sector, shared that the company presently commands an impressive 24% share of the Egyptian pharmaceutical market, boasting a substantial business volume of EGP 24 billion.
Shawky disclosed to DNE that the funding for these new initiatives will be facilitated through the optimization of the company's cash receipts cycle.
Notably, this cycle was streamlined to a single day in September 2023, a remarkable improvement from the previous nine-day cycle in September 2022.
Highlighting the financial performance, Shawky reported a notable 101% surge in the company's net profit before interest, reaching EGP 996.7 million in September 2023, compared to EGP 495 million in the corresponding period of 2022.
However, he acknowledged that an increase in financing costs had a slight impact on the net profit margin.
During the initial nine months of 2023, the company's Earnings Before Interest, Taxes, and Depreciation (EBITDA) experienced a substantial growth of 101%, escalating to EGP 23.8 billion, compared to EGP 15.8 billion in the same period of 2022.
Shawky further revealed a strategic shift in the company's focus towards imported products, citing a higher profit margin of 13%, as opposed to the 8% margin associated with local products.
The consolidated net profits of Ibn Sina Pharma witnessed an impressive 46% increase in the first nine months of 2023, reaching EGP 173.6 million, a notable upswing from EGP 118.4 million recorded during the corresponding period in 2022.
The company's proactive investment and financial strategies position it favorably for continued success in the dynamic pharmaceutical landscape.