SPIMACO says private sector sales, toll manufacturing lift Q4 profit: CFO

Saudi Pharmaceutical Industries & Medical Appliances Corp. (SPIMACO) posted higher net income on an improved sales mix within the pharmaceuticals segment, with the private sector—the largest contributor to sales —posting growth of around 25%, CFO Abdulaziz Al Oud told Argaam.

Contract manufacturing, a higher-margin business, rose about 16%, directly supporting profitability, alongside better operating efficiency and tighter discount controls, which enhanced revenue quality and margins.

Private-sector sales reached SAR 239.5 million in Q4 2025, compared with SAR 51.9 million from government sales.

The private sector remained the key contributor to profitability, alongside strong support from higher-margin contract manufacturing activities.

Revenue rose 5.3% in Q4 2025, driven by a focus on higher-value products, cost discipline and a balanced approach to growth and sustainability.

The launch of more than eight new medications in 2025 began to support Q4 performance, with further upside expected in 2026 as distribution expands and market share increases. The company noted that the full impact typically materializes gradually as supply chains stabilize.

SPIMACO added that its oncology and high-toxicity drugs facility represents a strategic move to expand into higher-value segments, supporting innovation and pharmaceutical security in the Kingdom.

For 2026, the company will build on 2025 results through operational efficiency, strategic partnerships and progress in innovation and biopharma, while maintaining a balance between growth and profitability.