Avalon Pharma profit jumps 72% to SAR 35M in 9M 2024; Q3 at SAR 3.9M

The third-quarter net earnings climbed 34.4% to SAR 3.9 million, from SAR 2.9 million in Q3 2023. The three-month gross profit also soared by 36.63% YoY to SAR 12.55 million, thanks to the growth in sales volumes, the improved product variety and lower production cost per unit on the pick-up in output volumes.

This uptick was attributed to strong sales across all distribution channels in Q3 2024, compared to the same quarter of last year. Government sales led with an annual sales increase of SAR 11.63 million, thanks to product deliveries under a contract awarded by the National Unified Procurement Co. (NUPCO), followed by export sales (SAR 7.94 million) and private-sector sales (SAR 740,000).

The 177.6% YoY hike in export sales was mainly attributed to sales of new customers from Jordan, Yemen and Libya, alongside increased sales of existing clients in Kuwait and the UAE.

However, the company’s net income fell 82.3% from SAR 21.8 million in Q2 2024.

The quarterly profit drop came as the topline contracted by 19.85% quarter-on-quarter (QoQ) to SAR 81.06 million in Q3 2024, mainly due to demand seasonality as most private-sector clients tend to undertake procurement for goods in Q2 ahead of the summer and Hajj holidays. But this was partially offset by the improved public-sector performance on the back of product deliveries under the NUPCO-awarded contract.

Moreover, Avalon Pharma witnessed a QoQ sales slump in Q3 2024, which fueled a SAR 17.57 million sequential pullback in gross profit. However, this downturn was partially capped by a QoQ decrease in selling and distribution expenses for the current quarter.

Total shareholders’ equity, no minority interest, reached SAR 326.19 million as of Sept. 30, 2024, compared to SAR 272.82 million in the corresponding period of 2023.