Saudi Paper profit rises 28% to SAR 52.1 mln in 9M 2023; Q3 at SAR 22.4 mln

Saudi Paper Manufacturing Co. posted a 28% profit rise in the first nine months of 2023 to SAR 52.1 million, from SAR 40.6 million in the year-earlier period. 

The company cited a 22.3% increase year-on-year (YoY) in sales, driven by the improved sales of paper rolls, especially after the operation of the new production line for paper rolls in April 2023. This boosted production capacity by 31% with a slight increase in fixed production costs.

The better profit was made despite an increase of SAR 10 million YoY in sales and marketing expenses, including shipping expenses to customers as a result of increased sales. Financing costs also rose by SAR 10.9 million YoY, due to a rise in the cost of financing locally and globally during the current period.

In Q3 2023, the company’s net profit more than tripled to SAR 22.4 million from SAR 6.21 million in the prior-year period.

The third-quarter net earnings grew 6% from SAR 21.15 million in Q2 2023.

Total shareholders’ equity, after minority interest, reached SAR 453.16 million as of Sept. 30, 2023, up from SAR 253.39 million a year earlier.

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