This increase was mainly driven by:

1. Revenue increase of 23.1% due to increased sales volume, new product launches; and the price adjustment for some of its key products that was obtained in 2023

2. A lower than revenue increase in Selling and Distribution (S&D) expenses (by 15.0%) vs 3Q 2022, mainly resulting from efficient S&D spending in addition to the impact of modification of commercial terms of a key distributor’s agreement in the latter part of last year.

3. Finance costs reduced by 92.2% vs 3Q 2022 as the financial charges of 3Q 2022 included a currency devaluation loss on the inter-company loan provided to the Company’s fully owned subsidiary in Egypt. In 4Q 2022, this loan was converted to a sub-ordinated perpetual equity instrument.

This increase was mainly driven by:

1. Revenue growth of 24.1% due to higher sales volume, new product launches; and the price adjustment for some of its key products that was obtained in 2023

2. S&D expenses rose by 12.1%, despite the higher increase in revenue, due to cost efficiency, economies of scale from the growth of revenue and modification of commercial terms of a key distributor’s agreement in the latter part of last year.

3. Finance costs reduced by 94.6% during 9M 2023 as finance costs for 9M 2022 included the currency devaluation loss on the inter-company loan granted to the Company’s fully owned subsidiary in Egypt. In 4Q 2022, this loan was converted to a sub-ordinated perpetual equity instrument, therefore any currency devaluation beyond 4Q 2022 will not impact the Company’s Net Profit with regards to this arrangement with the subsidiary.

During the 3rd Quarter of 2023, the Egypt manufacturing facility has become operational and commenced commercial production. Jamjoom Pharma paid a dividend of SAR 1 per share. And invested c.SAR 30 million in its Algerian Joint Venture to partially finance the acquisition of a manufacturing facility in Algeria.

The Company’s financial position continues to be strong with zero debt. As of 30 September 2023, the Company had a cash balance of SAR 93.2 million, which represented a decrease of 34.0% compared to the balance at year end 2022.

Significant changes in the Statement of Financial Position as at 30 September 2023 from 31 December 2022 were noted as follows:

1.Non-current assets increased by 2.8% driven mainly due to the investment in the Company’s JV in Algeria.

2. Current assets increased by 33.5% mainly due to an increase in trade receivables and inventories stemming from revenue and production growth.

3. Current liabilities increased by 79.1% mainly due to an increase in accruals and other current liabilities due to accruals relating to customer deals being settled at the year end.

4.Non-current liabilities increased by 8.7% mainly due to an increase in provision for employee benefits.

5.Shareholders' equity increased by 11.9% driven by the increase in retained earnings partially offset by decrease in the foreign currency reserve and dividends distributed during the year.