Saudi Paper net profit slips 5% to SAR 13.3 mln in Q1 2022

Saudi Paper Manufacturing Co.'s (SPM) net profit after Zakat and tax fell to SAR 13.3 million in Q1 2022, down 5% from SAR 14.1 million in the prior-year period.

The profit decline resulted from rising raw material costs, escalating domestic and global shipping costs, along with increased selling and administrative expenses due to higher sales and incremental administrative and financing expenses.

This drop was offset by a significant increase in revenues, resulting in higher gross profit.

On a sequential basis, Q1 2022 net profit after Zakat and tax reported a 14-fold rise from SAR 930,000 in Q4 2021.

Total shareholders’ equity, excluding minority interest, rose 14% to SAR 225.7 million in Q1 2022, from SAR 197.7 million in the year-ago period.

In December 2020, SPM board of directors approved increasing the company's capital from SAR 92 million to SAR 192 million via a rights issue. The weighted average number of shares outstanding for Q1 2022 totaled 19.2 million and 18.8 million for the same quarter a year earlier.

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