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Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) is expected to maintain positive results at the same rate, excluding the impact of the unforeseen circumstances, chief executive officer Mohammed bin Sultan Alsultan, told Argaam.
The pharmaceuticals company reported improved operating and net profit, compared to a prior year period, despite lower revenue in Q2 2020.
The CEO attributed the profit improvement to reduction of operating expenses, and lowering of provisions for impairment of trade receivables, which positively reflected on operating profit, net profit as well as the sales mix for Q2 2020.
The company also sold higher-margin products which boosted profitability.
Improved results in the second quarter were also driven by efficient production, started in the second half of 2019, which lowered costs of sales, and increased gross profit, Alsultan said.
SPIMACO reported SAR 70.8 million net profit in H1 2020, compared to a loss of SAR 208.8 million in year-earlier period, Argaam reported.
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