Logo of Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO)
Saudi Pharmaceutical Industries and Medical Appliances Corp.’s (SPIMACO) reported strong revenue growth in Q1 2023, supported by higher sales, improved sales mix and increased production across its facilities. The leap reflected the company's efforts on strategic refocus since the beginning of 2022.
In a statement to Argaam, SPIMACO pointed out that the Saudi market accounted for 89.2% of total revenues. Moreover, the company maintained its first rank sector-wise, with a market share of 7.6%.
The positive start of the first quarter of 2023 is of a cautious reaction to a fundamental shift in the company’s path, SPIMACO’s CEO Khaled Alkhattaf noted.
Moreover, CFO Michael Baum indicated that the last period witnessed an increase in revenues and high-cost control mechanisms, which resulted in profit growth.
He stressed that the company expects to achieve revenue growth between 12-14%, in addition to an enhanced gross profit margin. This was driven by a positive shift in sales levels, with cost rationalization strategies and an expected increase before interest, taxes, depreciation and debt, at a rate of 9-10%.
The company's profit increased to SAR 55.2 million in Q1 2023, compared to SAR 33.3 million in Q1 2022, Argaam earlier reported.
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