SPIMACO’s Q1 profit jumps 66% to SAR 55.2 mln

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) reported a net profit leap of 66% to SAR 55.2 million in Q1 2023, compared to SAR 33.3 million in the prior-year period.

The profit rise was buoyed by an increase of 36.7%, or SAR 142.8 million, year-on-year (YoY) in revenue to SAR 532.1 million on the back of strong growth in revenue from the sale of products and services. 

Revenue from sale of pharmaceutical products grew 37.3% YoY to SAR 486.9 million. Revenue from services reported strong growth of 29.9% YoY on the back of continued positive performance from medical services. 

Gross profit rose 38.4%, or SAR 71.2 million, YoY to SAR 256.9 million in Q1 2023 primarily due to the revised commercial strategy, which saw a favorable shift in the client mix, an upgrade in the marketable portfolio concentrating on stock keeping units (SKUs) with higher profitability and coupled with commercial spend rationalization.

The first-quarter gross profit margin expanded to 48.3% from 47.7% in Q1 2022.

On the other hand, selling, general and administrative expenses (SG&A) increased 23.1% YoY. Research and development expenses (R&D) also jumped by 56.8% YoY.

The company turned profitable from a net loss of SAR 106.76 million in Q4 2022.

Shareholders’ equity, after minority interest, dropped to SAR 1.59 billion by March 31, 2023, from SAR 1.86 billion a year earlier.

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