Saudi Paper net profit jumps 18% to SAR 34.4 mln in H1 2022; Q2 at SAR 21.1 mln on land sale

Saudi Paper Manufacturing Co.'s (SPM) net profit after Zakat and tax rose 18% to SAR 34.4 million in H1 2022, from SAR 29.2 million in the prior-year period. 

The paper manufacturer cited a significant increase in sales and gross profit. It also recorded capital gains from selling one of its owned lands, despite the global supply chain challenges that have exacerbated in the current period and the shortage in the supply of pulp in global markets. This led to an unprecedented rise in pulp prices and the company made great efforts to fulfill the local market needs of paper hard-rolls and finished products.

The second-quarter net profit after Zakat and tax climbed 39% to SAR 21.1 million, compared to SAR 15.1 million in Q2 2021. The profit growth was spurred by better sales and the capital gains arising from SPM’s sale of one of its land plots, despite the global supply chain challenges that exacerbated in the current quarter and the shortage of pulp in global markets. This, in turn, led to an unprecedented rise in pulp prices and the company made great efforts to fulfill the local market needs of paper hard-rolls and finished products.

The Q2 2022 net profit after Zakat and tax increased by 58.4% from SAR 13.3 million in the previous quarter.

Total shareholders’ equity, excluding minority interest, rose 15% to SAR 246.29 million as of June 30, 2022, from SAR 213.89 million in the year-ago period.

Retained earnings as of June 30, 2022, amounted to SAR 59.13 million, representing 30.8% of the company's capital.

On June 14, SPM announced that its subsidiary, Saudi Investment Recycling Co. (SIRC), sold a land plot in Riyadh, Al Sulay District for SAR 24.76 million. The proceeds will be used for financing expansion projects. 

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