Saudi Paper's net profit down 6% to SAR 23m for the first nine months of 2014

30/09/2014 Argaam Exclusive

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Saudi Paper Manufacturing Company, a manufacturer of tissue rolls and waste paper recycling, reported a net profit of SAR 23m for the nine months ended September 30, 2014, a 6% decline compared to the same period last year.

A net profit of SAR 2.8m was reported for Q3-2014 compared to SAR 12.1m for Q2.



Financials (M)

Item 9m 2013 9m 2014 Change‬
Revenues 614.05 589.76 (4.0 %)
Gross Income 136.20 140.88 3.4 %
Operating Income 54.07 50.63 (6.3 %)
Net Income 24.46 22.97 (6.1 %)
Average Shares 29.08 29.08 -
EPS (Riyals) 0.84 0.79 (6.1 %)

The company attributed the decline of the first nine months of 2014’s net profit, compared to the same period last year, to the increase of advertising expense, financial charges, and pre-operating expenses of international operation. This decrease is offset by the increase of gross profit.

The decline of Q3-2014’s net profit compared to the same period last year was attributed to the decline of sales, increase of advertising expense, financial charges, and pre-operating expenses of international operation.

The decline of Q3-2014’s net profit compared to the previous period (Q2-2014) was attributed to the temporary decline of sales.



Current Quarter Comparison (M)

Compared With The
Item Q3 2013 Q3 2014 Change‬
Revenues 194.61 179.76 (7.6 %)
Gross Income 45.46 41.62 (8.4 %)
Operating Income 20.91 13.44 (35.7 %)
Net Income 14.43 2.78 (80.7 %)
Average Shares 29.08 29.08 -
EPS (Riyals) 0.50 0.10 (80.7 %)


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2005 - - - - - -
Q2 2005 - - - - - -
Q3 2005 84.98 - 30.13 - 22.36 -
Q4 2005 82.26 - 31.69 - 16.84 -
Q1 2006 80.05 - 27.24 - 18.98 -
Q2 2006 89.73 - 29.88 - 19.70 -
Q3 2006 93.52 10.0 % 28.36 (5.9 %) 19.50 (12.8 %)
Q4 2006 102.30 24.4 % 24.75 (21.9 %) 13.88 (17.6 %)
Q1 2007 98.36 22.9 % 29.93 9.9 % 20.40 7.5 %
Q2 2007 111.70 24.5 % 36.81 23.2 % 24.77 25.7 %
Q3 2007 111.89 19.6 % 33.02 16.4 % 20.50 5.1 %
Q4 2007 121.66 18.9 % 36.43 47.2 % 17.68 27.4 %
Q1 2008 125.22 27.3 % 39.35 31.5 % 25.07 22.9 %
Q2 2008 136.40 22.1 % 41.58 13.0 % 25.82 4.2 %
Q3 2008 117.86 5.3 % 35.21 6.6 % 18.76 (8.5 %)
Q4 2008 126.43 3.9 % 36.41 (0.1 %) 21.78 23.2 %
Q1 2009 110.05 (12.1 %) 42.59 8.2 % 25.44 1.4 %
Q2 2009 141.44 3.7 % 43.01 3.4 % 22.12 (14.3 %)
Q3 2009 140.32 19.1 % 46.21 31.2 % 27.67 47.5 %
Q4 2009 166.02 31.3 % 54.40 49.4 % 31.14 43.0 %
Q1 2010 198.66 80.5 % 55.79 31.0 % 33.23 30.6 %
Q2 2010 209.51 48.1 % 59.42 38.1 % 35.26 59.4 %
Q3 2010 196.70 40.2 % 55.64 20.4 % 32.73 18.3 %
Q4 2010 198.71 19.7 % 61.01 12.2 % 33.33 7.0 %
Q1 2011 201.89 1.6 % 57.80 3.6 % 32.75 (1.5 %)
Q2 2011 230.53 10.0 % 52.33 (11.9 %) 26.44 (25.0 %)
Q3 2011 201.97 2.7 % 50.84 (8.6 %) 27.22 (16.8 %)
Q4 2011 201.28 1.3 % 49.77 (18.4 %) 25.63 (23.1 %)
Q1 2012 212.05 5.0 % 57.14 (1.1 %) 29.55 (9.8 %)
Q2 2012 204.51 (11.3 %) 59.37 13.4 % 30.57 15.6 %
Q3 2012 182.44 (9.7 %) 52.62 3.5 % 28.86 6.0 %
Q4 2012 194.87 (3.2 %) 38.32 (23.0 %) 12.99 (49.3 %)
Q1 2013 206.67 (2.5 %) 36.26 (36.5 %) 6.06 (79.5 %)
Q2 2013 212.77 4.0 % 54.49 (8.2 %) 24.00 (21.5 %)
Q3 2013 194.61 6.7 % 45.46 (13.6 %) 20.91 (27.6 %)
Q4 2013 205.69 5.6 % 33.86 (11.7 %) 4.70 (63.8 %)
Q1 2014 205.50 (0.6 %) 46.17 27.3 % 16.20 167.4 %
Q2 2014 204.50 (3.9 %) 53.10 (2.5 %) 21.00 (12.5 %)
Q3 2014 179.76 (7.6 %) 41.62 (8.4 %) 13.44 (35.7 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2005 - - - - - -
Q2 2005 - - - - - -
Q3 2005 18.78 - 0.65 - 18.78 0.65
Q4 2005 15.30 - 0.53 - 15.30 0.53
Q1 2006 17.43 - 0.60 - 17.43 0.60
Q2 2006 17.80 - 0.61 - 17.80 0.61
Q3 2006 17.94 (4.5 %) 0.62 - 17.94 0.62
Q4 2006 15.60 2.0 % 0.54 - 15.60 0.54
Q1 2007 18.61 6.7 % 0.64 - 18.61 0.64
Q2 2007 22.28 25.2 % 0.77 - 22.28 0.77
Q3 2007 20.59 14.8 % 0.71 - 20.59 0.71
Q4 2007 21.16 35.6 % 0.73 - 21.16 0.73
Q1 2008 22.51 21.0 % 0.77 - 22.51 0.77
Q2 2008 23.55 5.7 % 0.81 - 23.55 0.81
Q3 2008 16.51 (19.8 %) 0.57 - 16.51 0.57
Q4 2008 21.86 3.3 % 0.75 - 21.86 0.75
Q1 2009 22.63 0.5 % 0.78 - 22.63 0.78
Q2 2009 19.15 (18.7 %) 0.66 - 19.15 0.66
Q3 2009 24.68 49.5 % 0.85 - 24.68 0.85
Q4 2009 27.56 26.1 % 0.95 - 27.56 0.95
Q1 2010 29.83 31.9 % 1.03 - 29.83 1.03
Q2 2010 31.95 66.8 % 1.10 - 31.95 1.10
Q3 2010 30.17 22.2 % 1.04 - 30.17 1.04
Q4 2010 30.62 11.1 % 1.05 - 30.62 1.05
Q1 2011 30.04 0.7 % 1.03 - 30.04 1.03
Q2 2011 23.32 (27.0 %) 0.80 - 23.32 0.80
Q3 2011 24.12 (20.1 %) 0.83 - 24.12 0.83
Q4 2011 22.94 (25.1 %) 0.79 - 22.94 0.79
Q1 2012 25.42 (15.4 %) 0.87 - 25.42 0.87
Q2 2012 26.29 12.8 % 0.90 - 26.29 0.90
Q3 2012 24.06 (0.3 %) 0.83 - 24.06 0.83
Q4 2012 26.35 14.9 % 0.91 - 12.39 0.43
Q1 2013 0.70 (97.3 %) 0.02 - 0.70 0.02
Q2 2013 9.34 (64.5 %) 0.32 - 9.34 0.32
Q3 2013 14.43 (40.0 %) 0.50 - 14.43 0.50
Q4 2013 (4.24) (116.1 %) (0.15) - (4.24) (0.15)
Q1 2014 8.13 1069.9 % 0.28 - 8.13 0.28
Q2 2014 12.05 29.1 % 0.41 - 12.05 0.41
Q3 2014 2.78 (80.7 %) 0.10 - 2.78 0.10

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 35.29 % 29.60 % 20.56 %
Q3 2006 33.91 % 29.97 % 19.81 %
Q4 2006 30.15 % 27.54 % 18.81 %
Q1 2007 29.41 % 26.61 % 18.22 %
Q2 2007 29.53 % 26.33 % 18.34 %
Q3 2007 29.35 % 25.78 % 18.17 %
Q4 2007 30.70 % 25.92 % 18.63 %
Q1 2008 30.95 % 25.81 % 18.39 %
Q2 2008 30.37 % 25.03 % 17.73 %
Q3 2008 30.44 % 24.41 % 16.71 %
Q4 2008 30.15 % 24.40 % 16.69 %
Q1 2009 31.75 % 25.08 % 17.23 %
Q2 2009 31.71 % 23.75 % 16.17 %
Q3 2009 32.46 % 25.35 % 17.04 %
Q4 2009 33.38 % 26.48 % 16.85 %
Q1 2010 30.85 % 24.27 % 15.66 %
Q2 2010 30.21 % 24.79 % 15.96 %
Q3 2010 29.22 % 23.62 % 15.50 %
Q4 2010 28.85 % 22.97 % 15.25 %
Q1 2011 28.99 % 23.10 % 15.22 %
Q2 2011 27.39 % 21.54 % 13.79 %
Q3 2011 26.65 % 20.50 % 12.98 %
Q4 2011 25.22 % 18.16 % 12.02 %
Q1 2012 24.84 % 17.58 % 11.32 %
Q2 2012 26.48 % 18.32 % 12.05 %
Q3 2012 27.35 % 19.10 % 12.33 %
Q4 2012 26.13 % 19.15 % 11.10 %
Q1 2013 23.66 % 16.30 % 8.04 %
Q2 2013 22.80 % 15.28 % 5.83 %
Q3 2013 21.57 % 13.89 % 4.56 %
Q4 2013 20.75 % 12.92 % 2.47 %
Q1 2014 21.99 % 14.07 % 3.38 %
Q2 2014 22.04 % 13.78 % 3.75 %
Q3 2014 21.97 % 13.29 % 2.35 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2005 - - - -
Q2 2005 - - - -
Q3 2005 29.08 - - 8.52
Q4 2005 29.08 - - 8.26
Q1 2006 29.08 - - 8.44
Q2 2006 29.08 2.38 2.38 9.47
Q3 2006 29.08 2.35 2.35 10.09
Q4 2006 29.08 2.36 2.36 10.63
Q1 2007 29.08 2.41 2.41 11.26
Q2 2007 29.08 2.56 2.56 11.69
Q3 2007 29.08 2.65 2.65 12.33
Q4 2007 29.08 2.84 2.84 13.13
Q1 2008 29.08 2.98 2.98 13.88
Q2 2008 29.08 3.02 3.02 14.10
Q3 2008 29.08 2.88 2.88 14.68
Q4 2008 29.08 2.90 2.90 15.37
Q1 2009 29.08 2.91 2.91 16.14
Q2 2009 29.08 2.76 2.76 15.76
Q3 2009 29.08 3.04 3.04 16.61
Q4 2009 29.08 3.23 3.23 17.56
Q1 2010 29.08 3.48 3.48 18.57
Q2 2010 29.08 3.92 3.92 18.37
Q3 2010 29.08 4.11 4.11 19.44
Q4 2010 29.08 4.21 4.21 20.46
Q1 2011 29.08 4.22 4.22 21.51
Q2 2011 29.08 3.93 3.93 20.75
Q3 2011 29.08 3.72 3.72 21.58
Q4 2011 29.08 3.45 3.45 22.38
Q1 2012 29.08 3.29 3.29 23.26
Q2 2012 29.08 3.40 3.40 22.33
Q3 2012 29.08 3.39 3.39 23.17
Q4 2012 29.08 3.51 3.03 24.10
Q1 2013 29.08 2.66 2.18 22.15
Q2 2013 29.08 2.08 1.60 22.53
Q3 2013 29.08 1.75 1.27 22.96
Q4 2013 29.08 0.70 0.70 21.80
Q1 2014 29.08 0.95 0.95 22.10
Q2 2014 29.08 1.04 1.04 22.39
Q3 2014 29.08 0.64 0.64 22.49

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 71.32 71.32 17.94
Q3 2006 67.50 67.50 15.75
Q4 2006 24.93 24.93 5.55
Q1 2007 27.79 27.79 5.93
Q2 2007 24.58 24.58 5.38
Q3 2007 25.32 25.32 5.44
Q4 2007 28.15 28.15 6.09
Q1 2008 22.55 22.55 4.84
Q2 2008 27.78 27.78 5.95
Q3 2008 30.28 30.28 5.94
Q4 2008 33.65 33.65 6.35
Q1 2009 23.88 23.88 4.30
Q2 2009 26.85 26.85 4.69
Q3 2009 23.83 23.83 4.36
Q4 2009 21.98 21.98 4.05
Q1 2010 20.60 20.60 3.86
Q2 2010 17.70 17.70 3.78
Q3 2010 16.57 16.57 3.50
Q4 2010 16.23 16.23 3.34
Q1 2011 13.40 13.40 2.63
Q2 2011 13.91 13.91 2.63
Q3 2011 12.92 12.92 2.22
Q4 2011 15.58 15.58 2.40
Q1 2012 19.73 19.73 2.79
Q2 2012 14.48 14.48 2.20
Q3 2012 15.16 15.16 2.22
Q4 2012 13.96 16.17 2.03
Q1 2013 17.18 20.96 2.06
Q2 2013 31.50 40.96 2.91
Q3 2013 34.54 47.62 2.63
Q4 2013 79.70 79.70 2.54
Q1 2014 85.25 85.25 3.67
Q2 2014 77.37 77.37 3.61
Q3 2014 More than 100 More than 100 3.57

Business Segments (Million)

Compared With The
Period Transformative Industries Trade and Others Disposals
Q1 2014 199.39 6.11 -
Q2 2014 150.92 53.58 -
Q3 2014 159.67 20.09 -

Current
Market Cap (M Riyal) 2,917.41
Enterprise Value (EV) (M) 3,317.19
Shares Outstanding ((M)) 37.07
EPS ( Riyal) (TTM) 2.71
Book Value (BV) ( Riyal) 13.72
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 28.06
P/E (TTM) 28.99
Price/book 5.74
Return on Average Assets (%) (TTM) 9.2
Return on Average Equity (%) (TTM) 21.9

Share Price

78.70
(1.60) (1.99 %)

Saudi Paper Manufacturing Co. (SPM)


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