SPM profits down 5% to SR13mln in 1Q

Saudi Paper Manufacturing Co. (SPM) announced that its profits after zakat and tax declined 5% to SR 13 million during the first quarter of the year 2022 compared to SR 14 million during the same period of 2021.

This came after SPM announcement on Sunday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The operational profits of the company fell 5% to SR 18.5 million in 1Q against SR 19.48 million in the same period of the year ago.

Moreover, Elm’s gross profit rose 7% to SR 48.5 million in the first quarter this year from SR 45 million, while profit per share slipped to SR 0.69 from SR 0.75.

Lower profits were due to the increase in raw materials cost, and increase in the shipping cost and global logistics, causing the decline in net profit percentage, in addition to the increase in selling and distribution expenses due to increase in sales, and increase in administrative & financing expenses. This decline in net profit offset by a significant increase in the revenue, resulting in an increase in the gross profit value.

The reason for the increase in the company’s net profit during the current quarter compared to the previous quarter is due to the significant growth in revenue and the upswing in the production quantities, resulting a significant improvement in the gross profit.

Additional Information:

The company’s revenues for the first quarter of this year amounted to SAR 194.7 million , compared to SAR 158.49 million for the same quarter of the previous year, an increase of 22.8%, and compared to SAR 147.19 million in the previous quarter, an increase of 32.3%.

The total comprehensive income of the company’s owners for the first quarter of this year amounted to SAR 13.10 million profit compared to SAR 13.97 million profit in the same quarter of the previous year and compared to a loss of SAR 1.49 million for the previous quarter.

The total shareholders’ equity (after excluding minority interests) for the current period ending on March 31, 2022 amounted to SAR 225.66 million , compared to SAR 197.69 million for the period ending on March 31, 2021, resulting in an increase of 14.1%.

The retained earnings as on March 31, 2022 amounted to SAR 38.07 million , which constitutes 19.8% of the capital.

Earnings per share attributable to the company’s shareholders in the current period amounted to SAR 0.69 , compared to the same period of the previous year, which amounted to SAR 0.75.

Basic earnings per share is calculated by dividing the return on the ordinary shareholders of the company by the weighted average number of ordinary shares outstanding during the period.

And based on the approval of the Extraordinary General Assembly on 12-16-2020 to increase the company’s capital from ninety-two million riyals (92,000,000 riyals) to one hundred and ninety-two million riyals (192,000,000 riyals) by way of rights offering.

The weighted average number of shares outstanding for the first quarter of the current year is 19,200,000 shares, and the weighted average number of shares outstanding for the same quarter of the previous year is 18,844,595 shares.