Saudi Paper Manufacturing Co. (SPM) posted a profit jump to SAR 62.3 million in H1 2024, from SAR 29.7 million in the year-earlier period.
| Item | 6m 2023 | 6m 2024 | Change |
|---|---|---|---|
| Revenues | 419.46 | 431.50 | 2.9 % |
| Gross Income | 116.31 | 149.31 | 28.4 % |
| Operating Income | 50.05 | 74.67 | 49.2 % |
| Net Income | 29.70 | 62.25 | 109.6 % |
| Average Shares | 37.07 | 37.07 | - |
| EPS (Riyals) | 0.80 | 1.68 | 109.6 % |
The profit growth was spurred by a 2.9% year-on-year (YoY) increase in revenue, thanks to the improved sales on increased demand for paper rolls, as well as the improvement in sales of recycled paper for a subsidiary.
SPM signed an agreement to procure raw materials at costs that maintain planned profit margins. The step helped the company build a strategic inventory and reduce fluctuations in global market prices and shipping rates.
Moreover, financing coststhe partial repayment an increase inincome.
The second-quarter bottom line rose by 23% to SAR 26 million from SAR 21.15 million in Q2 2023, as the company signed an agreement to procure raw materials at costs that maintain planned profit margins. Provisions for accounts receivable and financing costs also declined.
| Item | Q2 2023 | Q2 2024 | Change |
|---|---|---|---|
| Revenues | 202.18 | 202.33 | 0.1 % |
| Gross Income | 64.13 | 67.45 | 5.2 % |
| Operating Income | 31.35 | 30.42 | (3.0 %) |
| Net Income | 21.15 | 26.00 | 22.9 % |
| Average Shares | 37.07 | 37.07 | - |
| EPS (Riyals) | 0.57 | 0.70 | 22.9 % |
| Item | Q1 2024 | Q2 2024 | Change |
|---|---|---|---|
| Revenues | 229.18 | 202.33 | (11.7 %) |
| Gross Income | 81.86 | 67.45 | (17.6 %) |
| Operating Income | 44.25 | 30.42 | (31.3 %) |
| Net Income | 36.25 | 26.00 | (28.3 %) |
| Average Shares | 37.07 | 37.07 | - |
| EPS (Riyals) | 0.98 | 0.70 | (28.3 %) |
The paper manufacturer’s net earnings dropped by 28.3% from SAR 36.2 million in Q1 2024.
Total shareholders’ equity, after minority interest, reached SAR 517.85 million as of June 30, 2024, up from SAR 431.1 million a year earlier.
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