Saudi Printing and Packaging Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

Saudi Printing and Packaging Co. reported a net loss of SAR 17.55 million for the six-month period ending June 30, 2026, a 68.4% improvement compared to a SAR 55.58 million loss in the same period last year, largely due to a SAR 31.35 million non-recurring gain from converting loans into equity.
Total revenue for the first half of 2026 fell by 32.6% YoY to SAR 199.84 million, driven by reduced business volumes and demand across both the printing and packaging segments due to changing market dynamics.
The company’s external auditor highlighted a material uncertainty regarding the group's ability to continue as a going concern, as accumulated losses have reached SAR 607.86 million, representing 93.22% of its share capital.
Financial stability remains under pressure with current liabilities exceeding current assets by SAR 353.1 million and total shareholders' equity dropping 83.5% YoY to SAR 37.17 million, leaving the company dependent on successful restructuring and continued lender support.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	108.01	146.55	-26.298	91.82	17.632
Gross Profit (Loss)	6.27	6.92	-9.393	3.02	107.615
Operational Profit (Loss)	-15.2	-19.16	-20.668	-19.42	-21.73
Net Profit (Loss) Attributable to Shareholders of the Issuer	-24.76	-31.18	-20.59	7.21	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-24.76	-31.18	-20.59	7.32	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	199.84	296.55	-32.611
Gross Profit (Loss)	9.29	16.84	-44.833
Operational Profit (Loss)	-34.61	-31.91	8.461
Net Profit (Loss) Attributable to Shareholders of the Issuer	-17.55	-55.58	-68.423
Total Comprehensive Income Attributable to Shareholders of the Issuer	-17.44	-55.52	-68.587
Total Shareholders Equity (after Deducting Minority Equity)	37.17	225.89	-83.545
Profit (Loss) per Share	-0.27	-0.93
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	607.86	93.22
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	The decrease in revenues during the current quarter compared to the corresponding quarter of the previous year is primarily due to lower revenues in both the printing and packaging segments, driven by market changes that led to a reduction in business volume in both sectors
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The decrease in net loss during the current quarter compared to the same quarter of the previous year is attributed to a reduction in selling, marketing, general, and administrative expenses, in addition to lower finance costs
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The increase in revenues during the current quarter compared to the previous quarter is attributable to higher revenues in the packaging segment, driven by an increase in certain business volumes
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The increase in net loss during the current quarter compared to the previous quarter is due to the fact that the prior quarter's results included non-recurring income of SAR 31.35 million resulting from the conversion of loans into equity
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The decrease in revenues during the current period compared to the same period of the previous year is attributable to lower revenues in both the printing and packaging segments, as a result of market dynamics and a reduction in business volume and demand across both sectors
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The decrease in net loss during the current period compared to the same period of the previous year is attributable to the conversion of loans into equity amounting to SAR 31.35 million in the first quarter of 2026, as well as lower selling, marketing, general, and administrative expenses, in addition to a reduction in finance costs.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	Material Uncertainty Related to Going Concern 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 353.1 million (31 December 2025: 399.7 million) and the Group had accumulated losses of 607.8 million (31 December 2025: 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. Our conclusion is not modified in respect of this matter.
Reclassification of Comparison Items	Certain figures for the comparison period have been reclassified to conform with the presentation for the current period.
Additional Information	- Total revenues for the current quarter reached SAR 108.01 million compared to SAR 146.55 million for the same quarter of the previous year, representing a decrease of 26.29%, and compared to SAR 91.82 million in the previous quarter, representing an increase of 17.63%. - Total shareholders’ equity (after deducting non-controlling interests) at the end of the current quarter stood at SAR 37.17 million compared to SAR 225.89 million for the same quarter of the previous year, representing a decrease of 83.54%, and compared to SAR 61.93 million at the end of the previous quarter, representing a decrease of 39.97%. - Total comprehensive loss for the current quarter amounted to SAR 24.76 million compared to a total comprehensive loss of SAR 31.18 million for the same quarter of the previous year, and compared to a total comprehensive income of SAR 7.32 million for the previous quarter. - Accumulated losses reached SAR 607.86 million, representing 93.22% of the share capital.