SPIMACO's market share hits 12.1%, positive performance to sustain: CFO

Saudi Pharmaceutical Industries and Medical Appliances Corp.’s (SPIMACO) CFO Abdulaziz Al Oud, said that the company's share in the Kingdom's pharmaceutical market reached 12.1% by the end of Q1 2025. 
 

In an interview with Argaam, Al-Oud added that these figures reflect the continued improvement of SPIMACO's competitive position in the market, emphasizing its leadership in the private sector within the Kingdom, based on the quality of its products, its diversity, and its operational efficiency.
 

He also pointed out that the positive results recorded during the first quarter reflect the successful implementation of the strategy aimed at boosting operational efficiency and achieving sustainable growth.
 

The company’s net profit rose despite the limited growth in revenue, which was due to controlling operating costs, diversifying the product portfolio, and introducing new products that meet the needs of the local and regional markets, thus improving profit margins, according to the CFO.
 

He added that SPIMCO successfully boosted its foothold, particularly in the government sector, which helped increase market share in line with its vision to strengthen its position as a leading company in the pharmaceutical sector.
 

Al Oud further indicated that SPIMACO's Q1 sales amounted to nearly SAR 339 million in the private sector and SAR 84 million in the government sector, powered by expanding partnerships with government agencies. In addition, regional market sales amounted to approximately SAR 28 million, in addition to SAR 29 million from manufacturing contracts and SAR 6 million from other sources.
 

Al Oud also pointed out that Q1 profit included SAR 18.1 million resulting from the sale of certain fixed assets as part of the plan to move to the new headquarters and consolidate operations and subsidiaries into a single location that supports operational efficiency. He indicated that the proceeds from the sale of assets that no longer served SPIMACO’s operational needs were used to strengthen its financial position and support investment in strategic initiatives.
 

“There are currently no plans to sell additional assets, as a restructuring of non-operating assets has been implemented in line with the company's strategy. This goal has been achieved in terms of improving resource efficiency towards more strategic initiatives and strengthening the financial position,” said the CFO.
 

He also stressed that if future developments arise that require a reassessment of assets, they will be addressed in the best interests of the company and shareholders.
 

Al Oud also expects continued positive operational performance in the second quarter, backed by continued cost control, expansion of quality products, and a focus on priority markets, especially the government sector. “This will be in line by continued implementation of strategic initiatives that support sustainable growth and deliver added value to shareholders, while emphasizing readiness to address any potential challenges related to market fluctuations or raw material costs,” he added.
 

According to Argaam’s data, SPIMACO's profit rose to SAR 75.1 million in Q1 2025, compared to SAR 39.5 million in the same period a year ago.