Saudi Paper turns to net profit of SAR 15.1 mln in 2020

Saudi Paper Manufacturing Co. (SPM) turned to a net profit after Zakat and tax of SAR 15.1 million for 2020, compared to a net loss of SAR 27.9 million a year earlier.

The company attributed the earnings to the significant improvement in gross profit due to lower cost of sales, availability of raw materials at an affordable price, lower other production costs, and better efficiency of operations.

Lower selling, distribution and administrative expenses, and Zakat provisions also contributed to the company’s performance.

For Q4 2020, the company swung to a net profit after Zakat and tax of SAR 6.2 million, compared to a net loss of SAR 11.3 million for the same quarter in 2019.

The decline in the net loss is due to higher sales and lower cost of sales, resulting in improvement of gross profit.

On a sequential basis, net profit after Zakat and tax soared by 56.7% due to lower selling, distribution and administrative expenses, finance charges, and Zakat provisions.