Saudi Paper Manufacturing Profits Increased to SR21 mln during 2Q, by 39%

The net profit after zakat and tax for the Saudi Paper Manufacturing Company grew to SR21 million during the 2Q, compared to SR15 million during the same quarter of the previous year, at a rate of 39%.

This came following announcement on Monday of the interim condensed financial results for the period ending on June 30, 2022 (6 months).

The operational profit amounted to SR7 million during the 2Q, compared to SR21 million during the same quarter of the previous year, a decline of 66%.

The gross profit amounted to SR41 million during the 2Q, compared to SR43 million during the same quarter of the previous year, a decrease of 5%.

The net profit after zakat and tax during the current period amounted to SR34.4 million, compared to SR29 million during the same period of the previous year, an increase of 18%.

Profits per share during the current period amounted to SR1.79, compared to SR1.53 during the same period of the previous year.

The reason for the increase in the company’s net profit during the current quarter compared to the same quarter of the previous year is due to the increase in sales and the achievement of capital gains as a result of selling one of the company’s owned lands, despite the problems of global supply chains that exacerbated in the current quarter and the shortage of pulp in global markets due to the many tensions and economic instability globally, which resulted in an unprecedented rise in pulp prices and the company made great efforts to secure the internal market need of paper hard-rolls and finished products.

The reason for the increase in the company’s net profit during the current quarter compared to the previous quarter is due to the improvement in the gross profit ratio and achievement of capital gains as a result of the sale of one of the company’s owned lands, despite the problems of global supply chains that have worsened in the current quarter.

The reason for the increase in the company’s net profit during the current period compared to the same period of the previous year is due to the significant increase in sales and the increase in the value of gross profit and achievement of capital gains as a result of selling one of the company’s owned lands, despite the problems of global supply chains that have exacerbated in the current period and the shortage in the supply of pulp in global markets due to the many tensions and economic instability globally, which resulted in an unprecedented rise in pulp prices and the company made great efforts to secure the internal market need of paper hard-rolls and finished products.

The company’s sales for the second quarter of this year amounted to SR 146.29 million, compared to SR 141.26 million for the same quarter of the previous year with a increase of 3.6% and compared to the previous quarter of SR 194.70 million with an decrease of 24.9%. The Sales for the current period ending June 30, 2022 (six months) amounted to SR 340.98 million, compared to SR 299.75 million for the same period of the previous year with an increase of 13.8%.

The total comprehensive income of the owners of the company for the second quarter of this year amounted to SR 20.63 million profit compared to SR 16.21 million profit in the same quarter of the previous year, compared to SR 13.10 million profit for the previous quarter. The total comprehensive income of the owners of the company for the current period ending June 30, 2022 (six months) amounted to SR 33.73 million profit, compared to SR 30.18 million profit for the same period of the previous year.

The total shareholders’ equity (after excluding non-controlling interest) for the current period ending on June 30, 2022 amounted to SR 246.29 million , compared to SR 213.89 million for the period ending on June 30, 2021, with an increase of 15.1% resulting from increase in profits.

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

The profit per share attributable to the company’s shareholders in the current period amounted to SR 1.79 compared to the same period of the previous year which is amounted to SR1.53.

The profits per share is calculated by dividing the net profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. As per the approval of the Extraordinary General Assembly dated 16/12/2020 company increase the capital from ninety two million riyal (SR 92,000,000 ) to one hundred and ninety two million riyal (SR 192,000,000 ) by offering priority rights. The weighted average number of outstanding shares for the current period is 192,000,000 shares, and the weighted average number of outstanding shares for the same period of the previous year is 19,023,279 shares.