The Saudi Pharmaceutical Industries and Medical Supplies (SPIMACO Pharmaceuticals) turned to profitability during the second quarter of 2020, bringing the net profit after zakat and tax to 25.89 million riyals compared to 195.87 million riyals Net losses in the second quarter of last year, because the company reduced its accumulated losses to less than 20% of its capital.
According to Arabiya Net, the company clarified in a statement to the Saudi market that its shift to profitability is due to substantially reducing the cost of sales; As a result of increased production efficiency, and lower operating expenses.
and indicated that sales fell 6.4%, compared with the same quarter of the previous year, as a result of a decrease in export sales to temporarily stop the export of medicines and pharmaceuticals due to precautionary measures and preventive measures. To limit the spread of the emerging corona virus.
The company added in a statement to Tadawul that its net profit for the half reached 67.7 million riyals during the first half ending on June 30, 2020, compared to recording losses of 221 million riyals during the same period Period from the previous year.
The company said that the reasons for the increase in net profit are due to the improvement in private sector sales during the current period, despite the decrease in export sales.
The company has also achieved, during the current period, an increase in gross profit by 46.5% as a result of substantially reducing the cost of sales, which was the most important reason for increasing production efficiency. As a result, and the decrease in operating expenses, operating profit and net profit increased during the current period compared with the same period of the previous year.
(Amazon fun knowledge)
