Saudi Paper cuts net losses to SAR 16 mln in 9M

09/10/2019 Argaam Exclusive

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Saudi Paper Manufacturing Co. (SPM) trimmed net losses after zakat and tax by 69.2 percent year-on-year (YoY) to SAR 16.2 million in the first nine months 2019 due to the profit generated from the reversal of trade receivables provision in the current period.

 

The nine-month figures were also backed by better gross profit and lower administrative expenses.

 

Accumulated losses stood at SAR 153.4 million, or 62.6 percent of the company’s capital as of Sept. 30, 2019.



Financials (M)

Item 9m 2018 9m 2019 Change‬
Revenues 392.06 398.74 1.7 %
Gross Income 66.25 70.00 5.7 %
Operating Income (17.13) (7.33) 57.2 %
Net Income (52.96) (16.50) 68.9 %
Average Shares 29.08 29.08 -
EPS (Riyals) (1.82) (0.57) 68.9 %

The third quarter net losses narrowed by 35 percent YoY to SAR 24.2 million, thanks to improved gross profit and gross profit margins amid lower prices of global paper pulp and administrative expenses.

 

When compared to the previous quarter, SPMC widened net losses by 56.9 percent from SAR 15.4 million, owing to higher banking charges. The court dismissed the paper manufacturer’s claim against a local affiliate.



Current Quarter Comparison (M)

Compared With The
Item Q3 2018 Q3 2019 Change‬
Revenues 114.26 121.76 6.6 %
Gross Income 13.79 28.19 104.4 %
Operating Income (16.02) 2.07 112.9 %
Net Income (37.41) (24.29) 35.1 %
Average Shares 29.08 29.08 -
EPS (Riyals) (1.29) (0.84) 35.1 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2010 198.66 80.5 % 55.79 31.0 % 29.83 31.9 % 1.03
Q2 2010 209.51 48.1 % 59.42 38.1 % 31.95 66.8 % 1.10
Q3 2010 196.70 40.2 % 55.64 20.4 % 30.17 22.2 % 1.04
Q4 2010 198.71 19.7 % 61.01 12.2 % 30.62 11.1 % 1.05
Q1 2011 201.89 1.6 % 57.80 3.6 % 30.04 0.7 % 1.03
Q2 2011 230.53 10.0 % 52.33 (11.9 %) 23.32 (27.0 %) 0.80
Q3 2011 201.97 2.7 % 50.84 (8.6 %) 24.12 (20.1 %) 0.83
Q4 2011 201.28 1.3 % 49.77 (18.4 %) 22.94 (25.1 %) 0.79
Q1 2012 212.05 5.0 % 57.14 (1.1 %) 25.42 (15.4 %) 0.87
Q2 2012 204.51 (11.3 %) 59.37 13.4 % 26.29 12.8 % 0.90
Q3 2012 182.44 (9.7 %) 52.62 3.5 % 24.06 (0.3 %) 0.83
Q4 2012 194.87 (3.2 %) 38.32 (23.0 %) 26.35 14.9 % 0.91
Q1 2013 206.67 (2.5 %) 36.26 (36.5 %) 0.70 (97.3 %) 0.02
Q2 2013 212.77 4.0 % 54.49 (8.2 %) 9.34 (64.5 %) 0.32
Q3 2013 194.61 6.7 % 45.46 (13.6 %) 14.43 (40.0 %) 0.50
Q4 2013 205.69 5.6 % 33.86 (11.7 %) (4.24) (116.1 %) (0.15)
Q1 2014 205.50 (0.6 %) 46.17 27.3 % 8.13 1069.9 % 0.28
Q2 2014 204.50 (3.9 %) 53.10 (2.5 %) 12.05 29.1 % 0.41
Q3 2014 179.76 (7.6 %) 41.62 (8.4 %) 2.78 (80.7 %) 0.10
Q4 2014 167.96 (18.3 %) 38.38 13.4 % 2.10 149.5 % 0.07
Q1 2015 185.48 (9.7 %) 46.76 1.3 % 4.86 (40.2 %) 0.17
Q2 2015 165.36 (19.1 %) 38.39 (27.7 %) (3.39) (128.1 %) (0.12)
Q3 2015 112.79 (37.3 %) 18.07 (56.6 %) (71.13) (2654.9 %) (2.45)
Q4 2015 137.23 (18.3 %) 18.17 (52.7 %) (44.37) (2212.9 %) (1.53)
Q1 2016 140.09 (24.5 %) 29.26 (37.4 %) (7.23) (248.6 %) (0.25)
Q2 2016 130.25 (21.2 %) 30.69 (20.1 %) (7.34) (116.6 %) (0.25)
Q3 2016 100.73 (10.7 %) 16.72 (7.4 %) (21.63) 69.6 % (0.74)
Q4 2016 106.21 (22.6 %) 18.06 (0.6 %) (35.19) 20.7 % (1.21)
Q1 2017 128.52 (8.3 %) 27.62 (5.6 %) (6.57) 9.0 % (0.23)
Q2 2017 121.39 (6.8 %) 30.89 0.6 % (3.92) 46.5 % (0.13)
Q3 2017 138.45 37.4 % 31.21 86.6 % (3.28) 84.8 % (0.11)
Q4 2017 127.46 20.0 % 34.82 92.8 % (34.89) 0.9 % (1.20)
Q1 2018 170.33 32.5 % 40.08 45.1 % 4.60 170.0 % 0.16
Q2 2018 107.48 (11.5 %) 12.38 (59.9 %) (10.43) (165.9 %) (0.36)
Q3 2018 114.26 (17.5 %) 13.79 (55.8 %) (37.41) (1,041.4 %) (1.29)
Q4 2018 149.40 17.2 % 14.92 (57.2 %) (62.49) (79.1 %) (2.15)
Q1 2019 155.10 (8.9 %) 25.03 (37.5 %) 23.32 406.7 % 0.80
Q2 2019 121.88 13.4 % 16.78 35.5 % (15.53) (48.9 %) (0.53)
Q3 2019 121.76 6.6 % 28.19 104.4 % (24.29) 35.1 % (0.84)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2010 30.85 % 24.27 % 15.66 %
Q2 2010 30.21 % 24.79 % 15.96 %
Q3 2010 29.22 % 23.62 % 15.50 %
Q4 2010 28.85 % 22.97 % 15.25 %
Q1 2011 28.99 % 23.10 % 15.22 %
Q2 2011 27.39 % 21.54 % 13.79 %
Q3 2011 26.65 % 20.50 % 12.98 %
Q4 2011 25.22 % 18.16 % 12.02 %
Q1 2012 24.84 % 17.58 % 11.32 %
Q2 2012 26.48 % 18.32 % 12.05 %
Q3 2012 27.35 % 19.10 % 12.33 %
Q4 2012 26.13 % 19.15 % 11.10 %
Q1 2013 23.66 % 16.30 % 8.04 %
Q2 2013 22.80 % 15.28 % 5.83 %
Q3 2013 21.57 % 13.89 % 4.56 %
Q4 2013 20.75 % 12.92 % 2.47 %
Q1 2014 21.99 % 14.07 % 3.38 %
Q2 2014 22.04 % 13.78 % 3.75 %
Q3 2014 21.97 % 13.29 % 2.35 %
Q4 2014 23.66 % 13.85 % 3.31 %
Q1 2015 24.38 % 14.04 % 2.96 %
Q2 2015 23.64 % 12.84 % 1.20 %
Q3 2015 22.42 % 7.20 % (7.17 %)
Q4 2015 20.20 % 2.44 % (14.22 %)
Q1 2016 18.70 % 0.57 % (17.56 %)
Q2 2016 18.48 % (0.58 %) (19.89 %)
Q3 2016 18.66 % 2.32 % (14.61 %)
Q4 2016 19.85 % 4.62 % (14.96 %)
Q1 2017 19.99 % 4.89 % (15.19 %)
Q2 2017 20.42 % 5.85 % (14.73 %)
Q3 2017 21.79 % 9.17 % (9.90 %)
Q4 2017 24.14 % 9.79 % (9.43 %)
Q1 2018 24.57 % 10.73 % (5.14 %)
Q2 2018 21.79 % 7.95 % (7.39 %)
Q3 2018 19.45 % 4.90 % (14.78 %)
Q4 2018 14.99 % 5.77 % (19.28 %)
Q1 2019 12.56 % 3.49 % (24.82 %)
Q2 2019 13.04 % 4.31 % (25.05 %)
Q3 2019 15.49 % 7.56 % (22.41 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2010 29.08 3.48 3.48 18.57
Q2 2010 29.08 3.92 3.92 18.37
Q3 2010 29.08 4.11 4.11 19.44
Q4 2010 29.08 4.21 4.21 20.46
Q1 2011 29.08 4.22 4.22 21.51
Q2 2011 29.08 3.93 3.93 20.75
Q3 2011 29.08 3.72 3.72 21.58
Q4 2011 29.08 3.45 3.45 22.38
Q1 2012 29.08 3.29 3.29 23.26
Q2 2012 29.08 3.40 3.40 22.33
Q3 2012 29.08 3.39 3.39 23.17
Q4 2012 29.08 3.51 3.03 24.10
Q1 2013 29.08 2.66 2.18 22.15
Q2 2013 29.08 2.08 1.60 22.53
Q3 2013 29.08 1.75 1.27 22.96
Q4 2013 29.08 0.70 0.70 21.80
Q1 2014 29.08 0.95 0.95 22.10
Q2 2014 29.08 1.04 1.04 22.39
Q3 2014 29.08 0.64 0.64 22.49
Q4 2014 29.08 0.86 0.86 22.64
Q1 2015 29.08 0.75 0.75 22.79
Q2 2015 29.08 0.22 0.29 22.85
Q3 2015 29.08 (2.32) (1.56) 20.21
Q4 2015 29.08 (3.92) (2.94) 18.16
Q1 2016 29.08 (4.34) (3.35) 13.92
Q2 2016 29.08 (4.47) (3.56) 13.63
Q3 2016 29.08 (2.77) (2.55) 12.93
Q4 2016 29.08 (2.45) (2.45) 11.27
Q1 2017 29.08 (2.43) (2.43) 11.54
Q2 2017 29.08 (2.31) (2.31) 11.42
Q3 2017 29.08 (1.68) (1.68) 11.19
Q4 2017 29.08 (1.67) (1.67) 9.59
Q1 2018 29.08 (1.29) (0.99) 10.37
Q2 2018 29.08 (1.51) (1.38) 9.95
Q3 2018 29.08 (2.69) (2.64) 6.67
Q4 2018 29.08 (3.64) (3.59) 3.44
Q1 2019 29.08 (2.99) (4.49) 5.40
Q2 2019 29.08 (3.17) (4.66) 4.88
Q3 2019 29.08 (2.72) (4.22) 2.88

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2010 20.60 20.60 3.86
Q2 2010 17.70 17.70 3.78
Q3 2010 16.57 16.57 3.50
Q4 2010 16.23 16.23 3.34
Q1 2011 13.40 13.40 2.63
Q2 2011 13.91 13.91 2.63
Q3 2011 12.92 12.92 2.22
Q4 2011 15.58 15.58 2.40
Q1 2012 19.73 19.73 2.79
Q2 2012 14.48 14.48 2.20
Q3 2012 15.16 15.16 2.22
Q4 2012 13.96 16.17 2.03
Q1 2013 17.18 20.96 2.06
Q2 2013 31.50 40.96 2.91
Q3 2013 34.54 47.62 2.63
Q4 2013 79.70 79.70 2.54
Q1 2014 85.25 85.25 3.67
Q2 2014 77.37 77.37 3.61
Q3 2014 More than 100 More than 100 3.57
Q4 2014 54.30 54.28 2.07
Q1 2015 61.85 61.82 2.03
Q2 2015 More than 100 More than 100 2.09
Q3 2015 NEG NEG 1.62
Q4 2015 NEG NEG 2.02
Q1 2016 NEG NEG 1.92
Q2 2016 NEG NEG 1.75
Q3 2016 NEG NEG 1.23
Q4 2016 NEG NEG 1.81
Q1 2017 NEG NEG 1.68
Q2 2017 NEG NEG 1.17
Q3 2017 NEG NEG 1.43
Q4 2017 NEG NEG 1.75
Q1 2018 NEG NEG 1.55
Q2 2018 NEG NEG 1.59
Q3 2018 NEG NEG 1.88
Q4 2018 NEG NEG 4.40
Q1 2019 NEG NEG 2.32
Q2 2019 NEG NEG 2.04
Q3 2019 NEG NEG 3.44

Business Segments (Million)

Compared With The
Period Transformative Industries Trade and Others Disposals
Q1 2014 199.39 6.11 -
Q2 2014 150.92 53.58 -
Q3 2014 159.67 20.09 -
Q4 2014 146.82 21.15 -
Q1 2015 165.51 19.97 -
Q2 2015 149.60 15.76 -
Q3 2015 102.66 10.13 -
Q4 2015 80.26 56.69 -
Q1 2016 130.83 9.25 -
Q2 2016 123.39 6.85 -
Q3 2016 94.08 6.66 -
Q4 2016 66.39 39.82 -
Q1 2017 119.44 9.08 -
Q2 2017 112.05 9.34 -
Q3 2017 128.87 9.58 -
Q4 2017 73.87 53.60 -
Q1 2018 161.34 8.99 -
Q2 2018 100.00 7.48 -
Q3 2018 107.94 6.31 -
Q4 2018 141.14 8.25 -
Q1 2019 149.00 6.10 -
Q2 2019 115.81 6.07 -
Q3 2019 116.75 5.01 -

Current
Market Cap (M Riyal) 2,895.17
Enterprise Value (EV) (M) 3,294.94
Shares Outstanding ((M)) 37.07
EPS ( Riyal) (TTM) 2.71
Book Value (BV) ( Riyal) 13.72
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 27.85
P/E (TTM) 28.77
Price/book 5.69
Return on Average Assets (%) (TTM) 9.2
Return on Average Equity (%) (TTM) 21.9

Share Price

Saudi Paper Manufacturing Co. (SPM)


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