Rameda expects to hit operating profits of LE255M in 2019

CAIRO - 26 January 2020: Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) expected its operating profits before tax, interest, depreciation and amortization to decrease by 11.7 percent, to reach about LE 255 million in 2019, compared to LE 289 million in 2018.

Ramida added in a statement to the Egyptian Exchange (EGX) Sunday that during the last quarter of 2019, the adjusted operating profits before tax, interest, depreciation and amortization decreased 2 percent to reach about LE 96 million.

It pointed out that the company's revenues increased by 11 percent on an annual basis to record LE 890 million during 2019, noting that in the last quarter of the year, the company's revenues amounted to about LE 271 million with an annual growth rate of 16.3 percent.

“With the upgrades and expansion works undertaken between January-November 2019 now complete, and with the resumption of uninterrupted production, management expects a stronger growth and profitability momentum heading into 2020,” it stated, adding that Rameda’s facilities are now fully-operational with a 60 percent increase in production capacity, including the group’s new lyophilized lines.

“This will pave the way for streamlined production, new product launches, and increased opportunities in toll manufacturing segment, all of which will lead to higher revenues and lower costs through improved economies of scale,” it clarified.

Listing of Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) in EGX took place in December.

“Trading commenced on Rameda (RMDA.CA) with a celebration of company number 215 on EGX’s main market platform in the presence of Rameda’s management, EGX’s Chairman Mohamed Farid Saleh and EGX management,” EGX said in a statement then.

EGX added public and private offering covered 376,60 million shares representing 48.99 percent of the company’s total shares with a price of LE 4.66/share and with a total value of LE 1,754,983,960; LE 1.6 billion for private placement and LE87.7 million for public placement.

“The IPO resulted in allocating 18.83 million shares representing 5 percent of the total shares offered, while the private placement allocated 357,77 million shares representing 95 percent,” it clarified, adding that the private placement was oversubscribed by 1.2 times and the IPO by 36 times.