‎SPIMACO expects upbeat performance to continue in Q4 2025

Abdulaziz Al-Oud, CFO of Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO), expects the company to continue its positive growth trajectory during the fourth quarter of 2025, backed by strong demand in the local market, expanding government sales, improved supply-chain efficiency, and ongoing gains from operational optimization and higher manufacturing-line productivity.

He told Argaam that these factors will help boost revenues and sustain profitability improvement by year-end.

Al-Oud also explained that the rise in Q3 2025 profit was driven mainly by an improved product mix and redirecting resources toward higher-margin products.

“The company has addressed previous operational challenges affecting certain product categories and enhanced sales efficiency. Moreover, the underutilized production lines were ramped up to increase sales volumes and reduce fixed costs, which positively impacted operating margins and the company’s overall profitability,” said the CFO.

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He added that the 7.2% decline in Q3 revenues year-on-year was primarily due to an 18% drop in private-sector sales, caused by heightened competition in the local market, and a 36% decline in export sales, driven by weak demand in some regional markets.

The CFO also highlighted that the government-sector sales reached SAR 109.6 million, up 50% year-on-year, driven by better operational efficiency, local product support, and the localization of several pharmaceutical items.

Meanwhile, the contract manufacturing segment saw strong growth of 338%, with sales rising to SAR 18.9 million, as more companies relied on national manufacturing facilities for production.

Despite the slight decline in topline, SPIMACO focused on improving revenue quality, which was clearly reflected in the significant improvement in net profit compared to the same period last year, according to Al-Oud.

According to Argaamdata, SPIMACO profit (before minority interest) rose to SAR 154.7 million by the end of the first nine months of 2025. Q3 profits reached SAR 43.6 million.

Abdulaziz Al-Oud, CFO of Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO), expects the company to continue its positive growth trajectory during the fourth quarter of 2025, backed by strong demand in the local market, expanding government sales, improved supply-chain efficiency, and ongoing gains from operational optimization and higher manufacturing-line productivity.

He told Argaam that these factors will help boost revenues and sustain profitability improvement by year-end.

Al-Oud also explained that the rise in Q3 2025 profit was driven mainly by an improved product mix and redirecting resources toward higher-margin products.

“The company has addressed previous operational challenges affecting certain product categories and enhanced sales efficiency. Moreover, the underutilized production lines were ramped up to increase sales volumes and reduce fixed costs, which positively impacted operating margins and the company’s overall profitability,” said the CFO.

He added that the 7.2% decline in Q3 revenues year-on-year was primarily due to an 18% drop in private-sector sales, caused by heightened competition in the local market, and a 36% decline in export sales, driven by weak demand in some regional markets.

The CFO also highlighted that the government-sector sales reached SAR 109.6 million, up 50% year-on-year, driven by better operational efficiency, local product support, and the localization of several pharmaceutical items.

Meanwhile, the contract manufacturing segment saw strong growth of 338%, with sales rising to SAR 18.9 million, as more companies relied on national manufacturing facilities for production.

Despite the slight decline in topline, SPIMACO focused on improving revenue quality, which was clearly reflected in the significant improvement in net profit compared to the same period last year, according to Al-Oud.

According to Argaamdata, SPIMACO profit (before minority interest) rose to SAR 154.7 million by the end of the first nine months of 2025. Q3 profits reached SAR 43.6 million.