Saudi Paper CEO says sales surged, production neared 100,000 tons in 2022

Yousseri Elbishry, CEO of Saudi Paper Manufacturing

Saudi Paper Manufacturing Co. (SPM) reported a significant increase in the sales of paper rolls or finished products, compared to the previous periods, and saw better gross profit, which drove earnings higher, CEO Yousseri Elbishry told Argaam in a phone call.

Paper pulp prices peaked in 2022, then started to gradually decline to normal averages. SPM maintained profit margins, thanks to enhanced production efficiency and a slight rise in selling prices.

SPM’s production capacity neared 100,000 annually at the end of 2022, while export sales reached around SAR 10 million (SAR 9.97 million) in the fourth quarter of 2022, he revealed.

The company overcame the supply chain crisis, Elbishry added, ruling out any crisis in the fourth quarter.

Elsewhere, the CEO elaborated that the agreement signed with Toscotec for the supply of a new production line for raw tissue paper rolls had no impact on Q4 2022 financial results, as the new line will commence operations in Q2 2023.   

He also cited the impact of inflation on raw material prices, adding that when inflation rates start to gradually decline, factories were encouraged to operate at maximum capacity, which drove higher market demand.

Elbishry expects SPM to continue growth this year, especially after machine No. 2 launched operations in Q2 2022, noting that the company witnessed increasing growth in the last three years.

The paper manufacturer’s net profit leapt 55% to SAR 46.9 million in 2022, compared to SAR 30.3 million a year earlier. The fourth-quarter net profit came in at SAR 6.3 million, Argaam earlier reported.