SPIMACO turns to net profit of SAR 109.5 mln in 2020

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) reported a net profit after Zakat and tax of SAR 109.5 million for 2020 against a net loss of SAR 484 million last year.

The profit growth was driven by a 5% year-on-year (YoY) rise in sales revenue, amid better private sector sales, which was further supported by a 12% YoY decline in the cost of sales. Selling and marketing expenses decreased by SAR 34 million, or 10% YoY, with the impairment of trade receivables declining by SAR 94 million, or 98% YoY.

The company also reported lower finance costs and an increase of SAR 52 million in its profit share from associates and joint venture companies.

Moreover, some of the non-recurring expenses recorded in 2019 had a positive impact on 2020 performance, as these expenses included impairment of goodwill of SAR 137 million and financial guarantee expenses of SAR 108 million.

In Q4 2020, SPIMACO narrowed net losses by 90.6% to SAR 28.4 million, from SAR 303.95 million in prior-year period.

Shareholders’ equity, excluding minority interest, decreased by 1.4% YoY to SAR 1.915 billion in 2020.