SPIMACO turns to SAR 76.8 mln profit in H1, Q2 at SAR 22.1 mln

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) reported a net profit of SAR 76.8 million in H1 2023, versus a net loss of SAR 13.3 million in a year earlier period.

Revenue increased by 34.4%, or SAR 240.9 million, to SAR 940.8 million on the back of a beneficial change in the client mix, expansion of sales across the private and government channels, and a rise in sales volume due to high demand for the company's products.

Gross Profit increased by 44% YoY, or SAR 134.5 million, to SAR 440.4 million for H1 2023 as a result of strong growth of 34% YoY in H1 2023 revenue.

Depreciation and amortization expenses decreased by 8.6% to SAR 41.5 million compared to SAR 45.4 million in H1 2022.

SPIMACO’s net profit for Q2 2023 reached SAR 22.1 million, compared to a net loss of SAR 46.65 million in Q2 2022.

This was spurred by a revenue increase of 31.6% YoY to SAR 408.7 million on the back of strong growth in revenue from selling products as well as services.

Gross profit rose 52.7% YoY to SAR 183.5 million in Q2 2023, primarily due to the revised commercial strategy, which saw a favorable shift in the client mix and an upgrade in the marketable portfolio coupled with tight cost control.

The company also cited lower selling, general, and administrative expenses (SG&As).

On a quarterly basis, net earnings plunged 59.7% from SAR 54.74 million.

Shareholders’ equity, with no minority interest, stood at SAR 1.60 billion as of June 30, 2023, compared to SAR 1.74 billion a year earlier.

Accumulated losses reached SAR 102.1 million as of June 30, 2023, representing 9% of capital.

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