Saudi Paper Manufacturing Co. (SPM) posted a drop of 36% year-on-year (YoY) in net profit after Zakat and tax to SAR 5.1 million for H1 2020, compared to SAR 8 million a year earlier.
The profit slump was attributed to reversal of trade receivables worth SAR 40.1 million in H1 2019, despite significant improvement in sales, lower production costs and a decrease in administrative and finance costs.
| Item | 6m 2019 | 6m 2020 | Change |
|---|---|---|---|
| Revenues | 276.98 | 288.55 | 4.2 % |
| Gross Income | 41.81 | 81.45 | 94.8 % |
| Operating Income | (9.40) | 32.53 | 446.2 % |
| Net Income | 7.79 | 4.88 | (37.3 %) |
| Average Shares | 29.08 | 29.08 | - |
| EPS (Riyals) | 0.27 | 0.17 | (37.3 %) |
In Q2 2020, the company turned to a net profit after Zakat and tax of SAR 3.9 million, against a net loss of SAR 15.4 million a year earlier, thanks to higher sales and a decline in costs. Moreover, selling, general and administrative expenses as well as finance costs decreased.
When compared to the previous quarter, net profit increased by over threefold, driven by a decline in selling, general and administrative expenses and the write-back of trade receivables provisions.
| Item | Q2 2019 | Q2 2020 | Change |
|---|---|---|---|
| Revenues | 121.88 | 142.67 | 17.1 % |
| Gross Income | 16.78 | 39.68 | 136.5 % |
| Operating Income | (8.19) | 17.57 | 314.5 % |
| Net Income | (15.53) | 3.83 | 124.7 % |
| Average Shares | 29.08 | 29.08 | - |
| EPS (Riyals) | (0.53) | 0.13 | 124.7 % |
| Item | Q1 2020 | Q2 2020 | Change |
|---|---|---|---|
| Revenues | 145.87 | 142.67 | (2.2 %) |
| Gross Income | 41.76 | 39.68 | (5.0 %) |
| Operating Income | 14.96 | 17.57 | 17.5 % |
| Net Income | 1.06 | 3.83 | 262.5 % |
| Average Shares | 29.08 | 29.08 | - |
| EPS (Riyals) | 0.04 | 0.13 | 262.5 % |
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