KAMPALA: Cipla Quality Chemical Industries Limited (CiplaQCIL) has tabled a stronger performance in the 2022 Financial Year (FY) compared to the 2021 FY where the company was faced with COVID-19 related challenges that hindered the exportation of drugs since most countries had closed their borders hence disrupting the supply chain.
Speaking at the CiplaQCIL media engagement dubbed ‘Facts behind the figures’ held at Golden Tulip in Kampala on Wednesday, June 22, 2022, the company’s Chief Executive Officer Ajay Kumar announced that Cipla became the first to produce COVID treatment in Uganda.
Kumar said the Molnupiravir Capsules are to be used to treat mild coronavirus. “Details as to whether the drug can be used to treat other COVID-19 variants will be communicated as MDA continues to do more studies,” Kumar added noting that the drug was first developed during the , course of the first and second COVID-19 wave.
Narrating further about the quality of the drug, Kumar also noted that Cipla invests so much money to produce good quality products. “Some people think that in Africa, we produce substandard products but in our company, we prioritize quality by producing good quality products,” he added.
Stating further Cipla’s achievements in the 2022 FY, Kumar said the company was able to table 3 new products; Azithromycin that was used in COVID treatment, Cipladon+ and Q-TIB. More to that, the company also recovered 5.3 million dollars of the Zambia debt and had a turnaround in profitability EBITDA $13.7 million Vrs $2.2 million in PY.
Shedding more light on the company’s strong performance, Frederick Kakooza, the Chief Finance Officer said that compared to FY 2021, there has been an improvement in all financial ratios. “This financial year, there has been an improved cash profitability and working capital has increased from 78.6 in FY 2021 to 103.5 in FY 2022,” he added, also noting that the company’s revenue declined by 6% compared to the previous year but a profitable financial position was enabled by reducing the cost of operation whilst maintaining standard quality products.
Amidst all these achievements, CiplaQCIL was also able to make a Memorandum of Understanding with government of Uganda for anti-cancer, sickle cell anaemia and TB.
In preparation for FY 2023, Cipla plans to prioritize the following;
i) private market focus by building a strong sales structure to accelerate growth of this segment.
ii) New facility by ensuring a timely completion for commencement of Oncology facility.
iii) Data rich tech platform in supply chain, manufacturing, finance.
iv) Re-imagine portfolio; Add new 9 products in the portfolio along with expansion of therapeutic areas.
v) Financials; Target sustainable and profitable growth. Focus on improving overall return ratios.
vi) Sustainability; Strong focus on sustainability, build on a legacy rooted in caring for people, communities and planet.
vii) Talent; Retain and attract the best talent to support growth strategies.
To resolve an upcoming crisis that might be stimulated by the Russia-Ukraine conflict and it’s impact on Cipla’s supply chain, CEO Kumar said the company has built de-risking activities to mitigate impact.
He noted that Cipla depends on strong partners and has also restructured the supply chain to make sure that the company does not run out of raw materials which are mostly imported.
Cipla Quality Chemical Industries Limited (CiplaQCIL), a leading pharmaceutical manufacturing company in Sub Saharan Africa operating in Uganda, is spread out in 31 countries and supplies to 19 of these.
The company not only focuses on manufacturing drugs to make money, but also caring for human life by making the drugs available to the people since prevention is better that cure.
