The Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO) reported net profits of 100.2 million SAR for the first nine months of 2026, dropping 31.2% compared to 145.6 million SAR during the same period in 2025, while posting a net loss of 33.3 million SAR in the third quarter.
The Bottom Line
- Q3 Earnings Shock: SPIMACO shifted to a net loss of 33.3 million SAR in Q3 2026, missing market expectations after posting a 42.1 million SAR profit in Q3 2025.
- Revenue Contraction: Third-quarter revenues dropped 6.55% year-over-year to 388.1 million SAR, heavily impacted by a 50% pullback in government sector sales.
- Non-Recurring Pressures: Financial results absorbed a 24 million SAR non-recurring expense from deferred tax asset adjustments following an overseas stakeholder exit.
Government Sales Slump Drives Q3 Revenue Contraction
Mubasher reported that government sector sales plummeted 50%, wiping out 63 million SAR in revenue compared to the previous year, even as private sector segments showed relative resilience.
Alarabiya noted that the corporation shifted from a net profit of 68.4 million SAR in the second quarter of 2026 to a 33.3 million SAR loss in the third quarter. Comparing the current quarter sequentially against the previous quarter, revenues dropped by 21% amounting to 105 million SAR, driven by a 57% drop in government sector sales worth 82 million SAR alongside an 8% drop in private sector sales worth 21 million SAR.
Deferred Tax Revaluations and Impairment Provisions
Beyond operational headwinds, balance sheet adjustments weighed heavily on the bottom line. The company recorded a 24 million SAR non-recurring expense in Q3 resulting from the reversal of deferred tax asset balances. This adjustment followed the primary foreign shareholder’s divestment of its stake, which triggered a mandatory reevaluation of related tax treatments.
Furthermore, credit risk provisions expanded significantly. SPIMACO increased its allowance for expected credit losses on financial assets by 14 million SAR during the quarter—and by 29 million SAR across the nine-month window—citing softening collection rates and heightened credit risk exposure tied to accounts receivable.
| Financial Metric | Q3 2026 | Q3 2025 | YoY Change |
|---|---|---|---|
| Net Profit / (Loss) (SAR) | (33.3 Million) | 42.1 Million | N/A (Shift to Loss) |
| Revenue (SAR) | 388.1 Million | 415.3 Million | -6.55% |
| Nine-Month Net Profit (SAR) | 100.2 Million | 145.6 Million | -31.2% |
| Shareholders’ Equity (SAR) | 1638.6 million SAR | 1546.3 million SAR | N/A |
Nine-Month Resilience Cushions Balance Sheet Growth
Despite the severe third-quarter downturn, cumulative metrics for the first nine months of 2026 reflect underlying stability across core operations. Total revenues for the nine-month period inched up 0.3% to reach 1.305 billion SAR, compared to 1.301 billion SAR in the first nine months of 2025, as reported by Mubasher.
Sahifa Maal noted that basic earnings per share dropped to 0.84 SAR for the current period, down from 1.22 SAR a year prior. At the same time, total shareholders’ equity—excluding minority interest—strengthened to 1638.6 million SAR by September 30, 2026, expanding from 1546.3 million SAR at the close of the corresponding period in 2025. Independent auditor Al-Jasser & Al-Shehri Chartered Accountants issued an unmodified clean review opinion with no qualified remarks.
External Comparables and Base Effects
A significant portion of the year-over-year earnings compression stems from challenging baseline comparisons rather than structural operational decay. During the third quarter of 2025, the corporation booked exceptional gains from the disposal of fixed assets that failed to repeat in 2026. Alarabiya highlighted that “other revenues” contracted 142% year-over-year in Q3, erasing 19 million SAR due to the absence of those prior-year asset sales.
For the nine-month span, the contraction in other revenues reached 96%, representing a 37 million SAR shortfall against the baseline set in 2025. Additionally, the company recorded a non-recurring expense of 23 million SAR during the nine-month period due to the reversal of deferred tax asset balances following the primary foreign shareholder’s exit and subsequent tax treatment revaluations.
Additional Disclosures
The company confirmed that certain comparative figures for revenues and expenses were reclassified to align with the current period’s presentation.
