EARNINGS WATCH- Ibnsina Pharma’s 2Q2019 profits surge 26% y-o-y: Ibnsina Pharma reported a 26% y-o-y increase in consolidated net profits to EGP 60.5 mn in 2Q2019, up from EGP 48 mn last year, the company said in a statement (pdf). Revenues rose 24% y-o-y to EGP 3.9 bn. The company grew its distribution network in 1H2019. It now operates 62 distribution centers, up from 57 in 1H2018. The company’s gross profitability for 1H2019 was boosted by “a temporary change in the contribution of different sectors to absolute revenue growth, with the company’s (cash intensive) wholesale segment seeing its contribution decline relative to traditional levels.” Ibnsina Pharma served more than 42k customers across Egypt and made 2.7 mn deliveries (up 4% y‐o‐y) during 1H.

Outlook: “Heading into the second half of 2019, we are taking all measures to ensure that core profitability and the bottom line continue on their positive trajectory, with a focus on fostering economies of scale across our distribution network and leveraging the bonuses traditionally provided by our suppliers’ at year‐end,” co-CEO Mahmoud Abdel Gawad said.