Saudi Paper net profit slides 36% to SAR 5.1 mln in H1 2020

Saudi Paper Manufacturing Co. (SPM) posted a drop of 36% year-on-year (YoY) in net profit after Zakat and tax to SAR 5.1 million for H1 2020, compared to SAR 8 million a year earlier.

The profit slump was attributed to reversal of trade receivables worth SAR 40.1 million in H1 2019, despite significant improvement in sales, lower production costs and a decrease in administrative and finance costs.

In Q2 2020, the company turned to a net profit after Zakat and tax of SAR 3.9 million, against a net loss of SAR 15.4 million a year earlier, thanks to higher sales and a decline in costs. Moreover, selling, general and administrative expenses as well as finance costs decreased.

When compared to the previous quarter, net profit increased by over threefold, driven by a decline in selling, general and administrative expenses and the write-back of trade receivables provisions.