Saudi Printing’s Accumulated Losses Hit 36% of Capital
Riyadh-based Saudi Printing & Packaging Co. (SPPC) has announced accumulated losses of 218.21 million Saudi riyals, amounting to 36.37% of its capital, based on the interim financial results for August 2024.
The results were finalised on 18 September, 2024, according to the company’s statement to Saudi Exchange (Tadawul).
The losses were mainly attributed to a decline in sales in both the printing and packaging segments due to challenging market conditions that negatively impacted revenues. Additionally the company recorded an impairment of 30.46 million riyals related to property, plant, and equipment, and unproductive spare parts inventory in the printing sector. Increase in financing costs was stated to be another loss maker.
The company has planned several measures to tide over the losses including expanding its product range and adding new production lines to boost sales, consolidating the packaging operations to enhance production efficiency and reduce costs, restructuring the printing sector to cut expenses, and reducing bank loans to decrease financing costs.
The procedures and instructions applicable on companies listed in Tadawul whose accumulated losses reach 20% or more of the capital will be applied.
