SPIMACO turns to SAR 36 mln profit in 9M 2023, incurs SAR 41 mln loss in Q3

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) swung to a net profit of SAR 36 million in the first nine months of 2023, against a net loss of SAR 58.4 million in the year-earlier period.

The nine-month revenue jumped 25.1% year-on-year (YoY) to SAR 1.32 billion, on improved client mix, sales growth across the private and government sector channels, and a rise in sales volume due to high demand for the company's products.

Gross profit climbed 41.3% YoY to SAR 606.4 million, thanks to the strong revenue growth that outpaced the 14% YoY rise in the cost of goods sold.

Amortization and depreciation expenses declined 7.7% YoY to SAR 61.5 million on a drop in non-tangible assets.

SPIMACO also reported an operating profit of SAR 87.9 million against an operating loss of SAR 31.8 million in the first nine months of 2022.

On the other hand, selling, general and administrative expenses (SG&A) rose 2.5% YoY to SAR 450.5 million. Net finance costs (FCs) jumped 57.3% YoY to SAR 51.5 million.

In the third quarter of the year, the company cut net losses to SAR 41 million from SAR 45 million in Q3 2022, thanks to a 6.9% rise YoY in revenue to SAR 381.6 million.

Gross profit leapt 34.7% YoY to SAR 166 million. Research and development costs dropped by 33.3% on an annual basis to SAR 7.5 million.

Amortization and depreciation expenses declined 5.8% YoY to SAR 20 million.

The company turned to losses from a net profit of SAR 22.2 million in Q2 2023, hurt by a fall of 6.6% quarter-on-quarter (QoQ) in revenue to SAR 381.6 million. Gross profit decreased by 9.5% QoQ to SAR 166 million.

Total shareholders’ equity, after minority interest, decreased to SAR 1.54 billion as of Sept. 30, 2023, from SAR 1.69 billion in the year-earlier period.

Accumulated losses reached SAR 149.2 million as of Sept. 30, 2023, representing 12.4% of the company’s capital.

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