Saudi Paper profit leaps to SAR 72.9M in 2023; Q4 at SAR 20.8M

Saudi Paper Manufacturing Co. (SPM) posted a 55.5% profit rise to SAR 72.9 million in 2023, from SAR 46.9 million in the year-earlier period.

The profit growth was driven by a 17.2% year-on-year (YoY) increase in sales, on better sales of paper rolls as the new production line commenced operations in April 2023. Accordingly, SPM’s selling capacity improved by 31% to meet the needs of local and regional markets.

The company also reported a decline in production costs and lower provisions for trade receivables in 2023, on the collection of customer dues, which in turn bolstered SPM’s liquidity.

On the other hand, selling and marketing expenses increased by SAR 14.3 million. Finance costs rose by SAR 12.6 million, on higher interest rates locally and globally.

SPM allocated an additional Zakat provision of SAR 5.2 million in 2023 for the previous year after an initial assessment by the Zakat, Tax and Customs Authority (ZATCA).

The fourth-quarter bottom line more than tripled to SAR 20.8 million from SAR 6.3 million in Q4 2022.

On a sequential basis, the paper manufacturer’s net profit decreased by 7.1% from SAR 22.4 million.

Total shareholders’ equity, after minority interest, reached SAR 472.61 million as of Dec. 31, 2023, up from SAR 401.32 million a year earlier.

View More Financial Results