SPIMACO expects upbeat performance to continue in Q4 2025

This potential uptrend would be 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, the CFO told Argaam.

These positive contributors will help boost revenues and sustain profitability improvement by year-end, he further stated.

Al-Oud also explained that the rise in the Q3 2025 profit was driven mainly by an improved product mix and the redirection of 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 lifted operating margins and the company’s overall profitability,” said the CFO.

He added that the 7.2% year-on-year (YoY) decline in Q3 revenues was primarily due to an 18% drop in private-sector sales amid heightened competition in the local market.

Additionally, during the same quarter, SPIMACO witnessed a 36% pullback in export sales, hurt by weak demand in some regional markets.

The CFO also highlighted that the government-sector sales reached SAR 109.6 million, up 50% YoY, 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 topline slump, SPIMACO focused on improving revenue quality, which was evident in the significant improvement in the Q3 2025 net profit compared to the same period last year, according to Al-Oud.

According to Argaam data, SPIMACO profit (before minority interest) rose to SAR 154.7 million by the end of the first nine months of 2025. The third-quarter earnings reached SAR 43.6 million.