Share analysis: Alliance Assurance – Insurance

Company Overview

SAIDAL was first created in 1982 after the restructuring of the Central Pharmacy of Algeria, when the company acquired existing factories in El Harrach, Dar El Beïda and Gué de Constantine. Later, in 1988, SAIDAL was further allocated an antibiotic complex designed by the National Company of Chemical Industries.

In 1989 SAIDAL became a public company, with economic autonomy and management, and in 1993 it was allowed to take stakes in existing or new businesses. In 1997 Saidal was restructured as an industrial group with three subsidiaries (Pharmal, Antibiotical and Biotic); however, in January 2014 these were merged back into a single company.

SAIDAL is a corporation with 80% of its capital held by the Algerian government, with the remaining 20% sold to the public in 1999 through an initial public offering. The SAIDAL stock is listed on the Algiers Stock Exchange. The company’s mission is to assist in the implementation of national drug policy through the development and production of generic drugs. Following the company’s restructuring in 2014, SAIDAL was divided into a number of units including the management division as well as nine core production units.

The company has three regional distribution centres which focus on the central, eastern and western portions of the country. Subsidiaries and affiliates include Somedial, of which SAIDAL owns a 59% share; Iberal (60%); Winthrop SAIDAL manufacturing (30%); Pfizer SAIDAL manufacturing (50%); Projet SAIDAL-North Africa Holding-FNI (19%); and Taphco Project (44.51%), among others.

In 2014 SAIDAL’s turnover reached AD9.79bn (€90.1m), down 15% from the previous year. This decrease was largely the result of the temporary closure of certain facilities for rehabilitation and modernisation; the withdrawal of certain products from the market; and market share losses for certain products due to the introduction of new operators. The 2014 sales volume was the equivalent of 102m units sold, compared to SAIDAL’s total production capacity of approxiately 200m. In relation to the company’s sales targets, the 2014 results were 76% of the company’s goal for value and 81% in terms of quanity.

Outstanding debts totalled AD5.14bn (€47.3m) in 2014, which represented a 7% decrease compared to 2013. Meanwhile, credit to suppliers amounted to AD1.46bn (€13.4), which represents a roughly 19% increase compared to 2013. Total investments for 2014 reached AD3.35bn (€30.8m), including AD1.41bn (€13m) for renewed projects and AD1.94bn (€17.8m) for new projects.

In terms of human capital, total staff was reduced by 5% and the workforce now stands at 3453 people. The consolidated net profit of the group reached AD1.48bn (€13.6m) in 2014 compared to AD2.66bn (€24.5m) the previous year, a decrease of 44%. However, net cash increased from AD6.9bn (€63.5m) in 2013 to AD7.8bn (€71.8m) in 2014, representing a 14% increase.

Concerning the first half of 2015, turnover was up by 7.42% to AD5.19bn (€47.7m) against AD4.83bn (€44.4m) in the first half of 2014. Meanwhile, for the same periods, net profit rose 26.56% to AD1.04bn (€9.6bn). Earnings per share were AD104 (€0.95) for the first half of 2015, compared to AD83 (€0.76) for the same period of 2014.

Development Strategy

SAIDAL’s strategic plan for 2010/14 was to upgrade existing units, build new units and boost their research and bioequivalency activities. This includes upgrades to five generic drug production facilities; the creation of six new production facilities; the establishment of a new research centre; the development of a centre for bioequivalent medications; and the modernisation of the company’s insulin production site.