Avalon Pharma’s CEO says Q3 profit margins hit by seasonal factors

Mohammed Al-Ghannam, CEO of Middle East Pharmaceutical Industries Co. (Avalon Pharma)

Mohamed Al Ghannam, CEO of Middle East Pharmaceutical Industries Co. (Avalon Pharma), said the company will continue delivering satisfactory results in the fourth quarter of 2025, with the export segment expected to record the highest growth rates, driven by seasonal demand and new international agreements.

He told Al Arabiya TV that the decline in profit margins during Q3 2025 was due to seasonal factors related to the nature of the products and market movement, and not linked to the company’s operational performance.

Avalon Pharma’s Q3 2025 results recorded significant growth year-on-year, despite seasonal fluctuations affecting some products, the CEO added.

According to data available with Argaam, the company posted a net profit of SAR 52.5 million in the first nine months of 2025, a 50% increase from SAR 35 million in the year-earlier period. Q3 net profit rose 114% YoY to SAR 8.3 million.

The Q3 2025 profit growth was attributed to a 33% increase in revenues to SAR 107.95 million, driven by 61% and 11% YoY increases in sales from the private and export segments, respectively.