SPPC
Saudi Printing and Packaging Co.
As of: May 28, 2026
Company Profile
Saudi Printing and Packaging Company (SPPC) is a Saudi Joint Stock Company primarily engaged in printing works, packaging services, and the manufacture of plastic products. The Group operates through several subsidiaries in Saudi Arabia and the United Arab Emirates, including Hala Printing, Al-Madinah Printing, and Emirates National Factory for Plastic Industries (ENPI). Its revenue model is based on the sale of printed materials, packaging solutions, and plastic goods. The Group is a subsidiary of Saudi Research and Media Group (SRMG), which provides financial support. Key dependencies include media licenses from the Ministry of Culture and Media and banking facilities for working capital and capital expenditure.
The Story
SPPC is currently facing a severe financial contraction characterized by deep operating losses, shrinking revenues, and a capital structure under extreme distress.
Source: Annual 2025 (2026-04-04)
Performance & Distributions
Market Pricing Multiples
Growth Story
The growth narrative for SPPC is currently one of significant contraction rather than expansion. Revenue has declined steadily from 779.2 million in fiscal 2023 to 573.0 million in the TTM period. This downward trend is reflected in a negative Sustainable Growth Rate of -1.09%, indicating that the business lacks the internal capacity to fund growth. Instead of reinvesting for the future, the company is actively shrinking its asset base, evidenced by the transfer of land and buildings to settle bank obligations and the formal procedures to cease operations at its subsidiary, City Pack Co., in the United Arab Emirates.
Profitability Dynamics
Profitability metrics reveal a story of severe value destruction, with a massive ROIC vs. WACC gap of -16.1%. The company reported an operating margin of -37.7% and a net loss of 267.3 million for the TTM period. These losses were exacerbated by significant non-cash charges, including a 110 million goodwill impairment and 10 million in property and equipment impairments during fiscal 2025. Cash flow generation remains under intense pressure, with the company relying on a 85 million loan from its major shareholder, Saudi Research and Media Group, to maintain liquidity as current liabilities exceed current assets by nearly 400 million.
Risk & Capital Structure
Risk Factors
The risk profile is dominated by a material uncertainty regarding the company's ability to continue as a going concern, with accumulated losses reaching 98.4% of its share capital. Financial risk is heightened by a high relevered beta of 1.81 and the breach of several bank covenants, which has led to the reclassification of long-term debt as current. Business-specific risks include geopolitical tensions in the Middle East and the ongoing liquidation of underperforming subsidiaries. The company is currently dependent on a debt-to-equity restructuring plan and continued shareholder support to stabilize its balance sheet.
Governance Disclosures
We track 9 key governance and oversight matters for this company in our database.
Key Management and Board Remuneration
Total compensation for key management personnel and the Board of Directors for the year 2025 was SAR 8,726,378, which includes short-term benefits, post-employment benefits, and board allowances.
Concentrated Revenue Transactions with Related Parties
The Group engages in substantial commercial activities with subsidiaries of its parent company, including SAR 21,371,778 in sales to Saudi Research and Publishing Company and SAR 1,360,303 in sales to the parent company itself.
Research Report
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