Riyadh – Mubasher: Saudi Pharmaceutical Industries and Medical Appliances Corporation (Spimaco) said that its operations in Egypt will negatively affected by the latest currency floatation.
The company expected that the consolidated net profits will lose around SAR 40 million ($10.67 million) in the fourth quarter of 2016, according to a bourse filing on Sunday.
Spimaco noted that it will take the necessary measures in the coming period to decrease the negative impact by temporarily halting exports of its products until adjusting prices to the new exchange rate.
Moreover, the company will make a feasibility study of manufacturing of some of the products in the Egyptian market, the statement said.
The Saudi-listed firm's profits declined 76.71% year-on-year to SAR 6.8 million in the third quarter of 2016 from SAR 29.2 million.
The Central Bank of Egypt (CBE) decided on 3 November to float the EGP freely against the foreign currencies and leave it to the supply and demand mechanisms.
