Saudi Paper Manufacturing Co.’s (SPM) net profit slumped 36% to SAR 8.6 million in Q1 2023, from SAR 13.3 million a year earlier.
| Item | Q1 2022 | Q1 2023 | Change |
|---|---|---|---|
| Revenues | 194.70 | 217.28 | 11.6 % |
| Gross Income | 48.50 | 52.18 | 7.6 % |
| Operating Income | 18.50 | 18.69 | 1.1 % |
| Net Income | 13.30 | 8.55 | (35.7 %) |
| Average Shares | 32.04 | 37.07 | 15.7 % |
| EPS (Riyals) | 0.42 | 0.23 | (44.5 %) |
| Item | Q4 2022 | Q1 2023 | Change |
|---|---|---|---|
| Revenues | 189.25 | 217.28 | 14.8 % |
| Gross Income | 43.29 | 52.18 | 20.5 % |
| Operating Income | 8.84 | 18.69 | 111.5 % |
| Net Income | 6.33 | 8.55 | 35.1 % |
| Average Shares | 37.07 | 37.07 | - |
| EPS (Riyals) | 0.17 | 0.23 | 35.1 % |
The profit decline was attributed to higher financing costs (SAIBOR) despite a significant increase in sales of jumbo rolls and converting products, which led to higher gross profit, as well as selling and distribution expenses.
The company made an effort to consume the relatively high-cost raw material inventory during the quarter but managed to maintain profit margins. The decrease in net profit was also due to an increase in the provision for impairment of trade receivables and provision for Zakat.
Sequentially, the company’s net profit rose 35.1% from SAR 6.3 million in Q4 2022 on higher sales due to growing demand.
Total shareholders’ equity, excluding minority interest, stood at SAR 409.97 million as of March 31, 2023, compared to SAR 225.66 million a year earlier.
Argaam Investment Company has updated the Privacy Policy of its services and digital platforms. Know more about our Privacy Policy here.
Argaam uses cookies to personalize content, to provide social media features and analyze traffic, that we might also share with third parties. You consent to our cookies if you use this website
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}