Saudi Paper profit up 14% to SAR 83.2M in 2024; Q4 at SAR 390,000

Saudi Paper Manufacturing Co. (SPM) posted a 14% profit rise to SAR 83.2 million in 2024, from SAR 72.9 million in the year-earlier period.

The positive performance is driven by 3.2% increase in sales in 2024 compared 2023 due to an increase in paper roll sales, as a result of the company's focus on products that meet growing market needs, especially sustainable products.

Additionally, the company reported a 5.5% increase in gross profit, a decrease in financing expenses and an increase in other income.

However, operating expenses increased as the company undertook major, non-recurring maintenance work, resulting in an increase in maintenance costs of SAR 2.5 million. General and administrative expenses, in addition to selling and distribution expenses, also grew due to increased sales volume and export quantities, representing 17.2% of the total sales. This is in line with the company’s strategy to increase its share in neighboring foreign markets, given the imminent start of operation of the new production line No. 5, which will increase the company’s production capacity by 60,000 tons in 2025. Furthermore, the high cost of diesel affected some aspects of the operating cost.

The fourth-quarter bottom line fell 98.1% to SAR 390,000 from SAR 20.8 million in Q4 2023.

On a sequential basis, the paper manufacturer’s net profit decreased by 98.1% from SAR 20.59 million.

Total shareholders’ equity, after minority interest, reached SAR 512.79 million as of Dec. 31, 2024, up from SAR 472.61 million a year earlier.

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