On 2026-07-30 15:51:55 (Saudi Time), Saudi Printing and Packaging Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue declined 32.611% YoY to SAR 199.84 million (from SAR 296.55 million), driven by lower revenues in both the printing and packaging segments due to market dynamics and a reduction in business volume and demand across both sectors. Despite the revenue decline, the net loss attributable to shareholders narrowed significantly by 68.423% YoY to SAR 17.55 million (from SAR 55.58 million), primarily due to the conversion of loans into equity amounting to SAR 31.35 million in Q1 2026, combined with lower selling, marketing, general, and administrative expenses and a reduction in finance costs.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 17.632% to SAR 108.01 million (vs. SAR 91.82 million in the prior quarter), driven by higher revenues in the packaging segment due to an increase in certain business volumes. However, net profit swung to a loss of SAR 24.76 million from a profit of SAR 7.21 million in the previous quarter, primarily because the prior quarter's results included a non-recurring gain of SAR 31.35 million from the conversion of loans into equity, which was absent in the current quarter.

Other Items

The external auditor issued an unmodified conclusion for the six-month period ending 30 June 2026, but included a material uncertainty paragraph related to going concern. As stated in the auditor's report: "We draw attention to Note 2.1 to the interim condensed consolidated financial statements, which indicates that, as at 30 June 2026, the Group's current liabilities exceeded its current assets by SAR 353.1 million (31 December 2025: SAR 399.7 million) and the Group had accumulated losses of SAR 607.8 million (31 December 2025: SAR 590.3 million), representing approximately 93.2% of the Company's share capital (31 December 2025: 98.4%). Note 2.1 also describes the Group's continuing losses, dependence on successful implementation of management's restructuring plans, and continued shareholder and lender support and the risk of a limited liquidity headroom if key actions are delayed or not completed. These events and conditions together with the other matters indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern." Accumulated losses stood at SAR 607.86 million, representing 93.22% of share capital, while total shareholders' equity (after deducting non-controlling interests) declined 83.545% YoY to SAR 37.17 million. Loss per share for the current period was SAR -0.27, compared to SAR -0.93 in the same period of the prior year.

Original announcement:

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