SPIMACO turns to SAR 165.6 mln loss in 2022; Q4 at SAR 107.2 mln

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) swung to a net loss of SAR 165.6 million for 2022, against a net profit of SAR 26.5 million a year earlier.

Revenue decreased 2.3%, or SAR 33.4 million, year-on-year (YoY) to SAR 1.42 billion on the back of slightly weaker income from sale of products. This was partially offset by stronger services revenue growth.

Gross profit dropped 8.8%, or SAR 54.3 million, YoY to SAR 566.3 million for 2022 primarily due to an unfavorable change in sales mix, price revisions from the Saudi Food and Drug Authority (SFDA).

Selling, general and administrative expenses (SG&A) increased 15.9% to SAR 638.1 million compared to SAR 550.8 million in 2021. The increase stemmed from the revised salary scheme, which saw salaries adjusting in line with market benchmark, payment of benefits to employees whose services have been terminated as well as an increase in sales and promotion and training expenses, in line with the business recalibration process jump-started in 2022.

Research and development expenses (R&D) also rose by 46.4% YoY to SAR 42.6 million on the back of higher salaries and benefits due to the recalibration of the science organization team.

Depreciation and amortization increased to SAR 90.2 million compared to SAR 88.1 million in 2021.

The company also incurred an operating loss of SAR 126.1 million compared to a profit of SAR 55.5 million in 2021. Net finance costs rose 9.5% YoY to SAR 43.2 million.

Zakat and income tax expense increased by SAR 12.6 million YoY to SAR 25.0 million,

The fourth-quarter net loss also deepened by 138% from SAR 45.05 million in Q3 2022.

Shareholders’ equity, after minority interest, dropped to SAR 1.53 billion as of Dec. 31, 2022, from SAR 1.83 billion a year earlier.