Saudi Paper Manufacturing Co. (SPM) is expected to maintain positive performance, thanks to improved selling prices, reduced costs, promising market conditions and a potential company restructuring, CNBC Arabia reported, citing Chief Executive Officer (CEO), Yousri Al Bashry.
SPM will likely report strong operating performance in Q3 2020, he added.
"We have gone through several challenges, but we reported improved earnings in Q2 2020, thanks to the efforts of both the board of directors and the executive management," Al Bashry indicated.
Higher gross profit in Q2 2020 was also driven by higher sales, lower costs, and decreased distribution, selling and administrative expenses. SPM reported lower financing charges in the second quarter, as it managed to reschedule the outstanding loan, which reflected the creditors' confidence in the company.
When asked about the impact of the COVID-19 outbreak on SPM operations, Al Bashry indicated that the company was somehow impacted due to the closure of hypermarkets and other wholesale outlets, however, there was an increasing demand for the tissue paper products from entities and other cleaning services companies.
SPM reported net earnings of SAR 5.1 million in H1 2020, compared to SAR 8 million in year-earlier period. Q2 2020 earnings stood at SAR 3.9 million versus net loss of SAR 15.4 million in prior-year period, Argaam reported.
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