Saudi Paper profit soars to SAR 36.3M in Q1 2024

Saudi Paper Manufacturing Co. (SPM) posted a profit leap to SAR 36.3 million in Q1 2024, from SAR 8.6 million in the year-earlier period.

Sales increased 5.5% during Q1 2024 on higher sales of paper rolls after operations started at the new production line in April 2023. It contributed to boosting sales capacity by 31% to meet local and regional markets’ needs. In addition, sales of recycled paper by a subsidiary improved.

The company noticed improved profitability, as it signed an agreement to purchase raw materials that contributed to building a strategic inventory at costs that maintain the planned profitability margins by cushioning fluctuations in global market prices, which resulted in an increase in the gross profit to 35.7% compared to 24.0% in Q1 2023.

In addition, the company reported lower financing expenses by SAR 1.40 million after repaying long-term loans.

On a sequential basis, the paper manufacturer’s net profit rose by 74.1% from SAR 20.82 million.

Total shareholders’ equity, after minority interest, reached SAR 508.64 million as of Q1 2024, up from SAR 472.61 million a year earlier.

The total comprehensive income of the company's owners amounted to SAR 36.04 million in Q1 2024, compared to SAR 8.65 million in Q1 2023 and SAR 23.33 million in Q4 2023.

Also, retained earnings amounted to SAR 165.7 million as of March 31, 2024, representing 49.17% of the capital.

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