SPIMACO Records Losses of SR52 mln during Q2

The Saudi Pharmaceutical Industries and Medical Appliances (SPIMACO) recorded losses after zakat and tax of SR52 million during the second quarter, compared to a profit of SR29 million during the same quarter of the previous year.
This came after the announcement on Sunday of the financial results for the period ending on 30-06-2022 “6 months”.
The operational loss amounted to SR39 million during the second quarter, compared to a profit of SR33 million during the same quarter of the previous year.
The gross profit amounted to SR121 million during the second quarter, compared to SR174 million during the same quarter of the previous year, down 30%.
The net loss after zakat and tax during the current period amounted to SR21 million, compared to a profit of SR54 million during the same period of the previous year.
The loss per share during the current period amounted to SR0.11, compared to a profit of SR0.48 during the same period of the previous year.
The net profit decreased by SR81 million (-277%) as a result of a decrease in operating profit by SR72 million (-220%) and a decrease in gross profit by SR 52.47 million (-30%). The decrease in gross profit is attributable to the sales mix which had a negative impact during the quarter. Also, repricing of some products by SFDA and a decrease in sales for one of our licensor products had a negative impact on gross profit. The operating profit further decreased due to an increase in operating expenses by SR 20 million in line with the company’s transformation strategy.
The company reported a net loss SR51.77 million for the current quarter compared to net profit of SR30.66 million for the previous quarter. The reduction in net profit is mainly due to the sales mix which had a negative impact during the quarter and an increase in operating expenses.
Sales revenue declined by SR 81 million (-10.35%) compared to same period last year mainly due to the sales mix which had a negative impact. Also, repricing of some products by SFDA as well as a decrease in sales of one of our licensor products negatively impacted revenues. Despite the significant decline in revenues, the gross profit only declined by SR10 million (-3%) due to the improvement in production utilization. Operating profit decreased by SAR 60 million (-103%) mainly due to increase in selling and marketing expenses by SR21 million, general and administration expenses by SR19 million and an increase in other operating expenses by SR12 million in line with the company’s transformation strategy. Decrease in provision for credit losses by SR3 million slightly reduce the negative impact on operating profit. Increase in zakat expenses by SR15 million further contributed towards net loss for the current period.
Certain comparison items of income and expenses have been reclassified to conform with the presentation of the current period.
The profit per share for the current period and for the similar period last year were calculated after deducting the non-controlling interests’ share of the net profit.