Saudi printing plunges to US$71.3M loss as packaging revenues slide 21% in 2025

SAUDI ARABIA – Saudi Printing and Packaging Company has reported a net loss of SAR 267.34 million (approximately US$71.3 million) for fiscal year 2025, widening from SAR 219.4 million (US$58.5 million) the previous year as revenues declined 21 percent and accumulated losses reached a staggering 98.4 percent of capital.

Total revenues for the 12-month period fell 20.6 percent to SAR 572.96 million (US$152.8 million), down from SAR 721.2 million (US$192.3 million) in 2024.

The company’s fourth-quarter losses deepened dramatically to SAR 171.3 million (US$45.7 million) compared to SAR 88 million (US$23.5 million) in the prior-year period.

The Numbers Behind the Loss

The financial deterioration reflects multiple pressures.

The company recorded provisions and asset impairments totaling SAR 132.4 million (US$35.3 million).

Shareholders’ equity plummeted to just SAR 12.3 million (US$3.3 million) by year-end, while accumulated losses reached SAR 590.3 million (US$157.4 million), representing 98.38 percent of the company’s SAR 600 million (US$160 million) capital. Earnings per share worsened to a loss of SAR 4.46 (US$1.19).

Restructuring Underway

In response, SPPC is implementing a comprehensive turnaround strategy.

The company is pursuing cost-related measures including manpower optimization, process automation, and asset optimization such as selling unutilized warehouses and land.

The goal is to improve financial stability, reduce accumulated losses below 50 percent of capital, and return to profitability.

In February 2026, the board resolved to permanently cease operations of City Pack Co., a wholly-owned subsidiary in the UAE with AED 10 million (US$2.7 million) in share capital, to reallocate resources toward higher-growth packaging segments.

This aligns with the company’s strategic roadmap announced in August 2025, focusing on improving packaging product efficiency and completing a debt-restructuring program.

Debt Restructuring and Capital Support

The company has secured financial backing from major shareholder Saudi Research and Media Group, which provided a financing agreement of up to SAR 75 million (US$20 million).

In November 2024, SPPC signed an agreement to settle outstanding debt owed to Alinma Bank through transferring two land plots and issuing new shares, a debt conversion that formed part of a broader capital increase approved in December 2025.

What This Means for the Industry

With accumulated losses now at 98.4 percent of capital, shareholders will vote on the company’s continuity plan to ensure operations can continue while the turnaround takes effect.

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