SPIMACO turns to loss of SAR 13.3 mln in H1 2022, Q2 at SAR 46.7 mln

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) swung to a net loss of SAR 13.3 million in H1 2022, against a net profit of SAR 57.2 million in the prior-year period

The first-half results were negatively impacted by the change in sales mix, which led to a 10.35% drop year-on-year (YoY) in revenue to SAR 81 million. Moreover, some products were repriced by the Saudi Food and Drug Authority (SFDA) as well as a decrease in the sales of a licensed product.

Despite the significant drop in revenues, gross profit declined by just 3% YoY, or SAR 10 million, due to the improvement in production utilization. Operating profit tumbled by 103% YoY.

Operating expenses rose by SAR 21 million, with the general and administration (G&A) expenses growing by SAR 19 million. Other operating expenses also saw an increase of SAR 12 million in line with the company’s transformation strategy.

In Q2 2022, the company turned to a net loss after Zakat and tax of SAR 46.7 million from a net profit of SAR 31 million a year earlier. SPIMACO cited a plunge of 220% YoY in operating profit, a 30% drop in gross profit, along with the repricing of some products by SFDA. 

The company reported a net profit of SAR 33.33 million in Q1 2022. The quarterly losses were attributed to a 20.22% drop in sales, along with higher operating expenses.

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