Globalpharma sale boosts profit 68% for Dubai Investments

Profit for Dubai Investments rose by 68 per cent in 2014, buoyed by the sale of the generic drug maker Globalpharma to the French pharmaceutical company Sanofi.

The company’s profits totalled Dh1.36 billion, up from Dh807 million in 2013, with the Globalpharma deal contributing Dh385m.

Profits excluding the sale of Globalpharma totalled Dh976m – an increase of 20.9 per cent over the previous year.

This increase in profit was accounted for by a fall in direct operating costs and an increase in contract revenue. Operating costs fell by around Dh102m, while total revenues rose to Dh3.2bn, up 14 per cent from Dh2.8bn in 2013.

Investments in the UAE increased by 60 per cent over 2014, rising from Dh 509.6m in 2013 to Dh817.3m.

The company’s investments outside the GCC almost quadrupled across 2014. The value of international investments rose from Dh281.8m in 2013 to Dh887.1m last year.

DI owns about 35 subsidiaries and joint ventures in real estate, IT, manufacturing and aluminium. Its business park subsidiaries have benefited from high demand for space in Dubai’s logistics corridor across 2014.

DI has joint ventures with Union Properties, ANC Investment and Al Qudra Sports Management, as well as non-controlling equity stakes in a number of other companies.

The value of DI’s equity investments rose from Dh701.1m in 2013 to Dh935.1m in 2014.

Standard & Poor’s, the ratings agency, rates the creditworthiness of the Dubai Investments Park Company, DI’s industrial park subsidiary, at BB+ with a stable outlook, indicating that the rating is not likely to be updated in the near future. BB+ is a low investment grade.

The Dubai Investments Park Development Company, one of the company’s subsidiaries, issued a $300m sukuk in February 2013.

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Adam Bouyamourn

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