‎Saudi Paper Q2 gross, operating profits spurred by sales growth: CEO

‎Saudi Paper Q2 gross, operating profits spurred by sales growth: CEO

Saudi Paper Manufacturing Co. (SPM) saw a jump in Q2 sales value by 38.2%, thanks to stronger sales of paper rolls and other products, which led to a rise in gross profit and operating profit by 56% and 347%, respectively, after operating the new paper rolls production line in April 2023, said CEO yousseri Elbishry.

In an interview with Argaam, Elbishry said that the production capacity increased by 31% following the operation of the new production line.

He pointed to a slight increase in fixed production costs, despite the higher financing expenses in the current quarter due to the high cost of financing locally and globally, noting that SPM recorded SAR 19 million capital gains in Q2 2022 from selling an owned land plot.

As for his forecasts for SPM's performance in Q3 2023, Elbishry said that the company expects a slight increase in prices after some tree pulp plants halted operations to conduct periodic maintenance in the coming period, in addition to demand for tree pulp from East Asia, which is considered a major driver for market prices. He noted that the company's performance has been continuing to pick up since early 2020.

Moreover, prices of pulp and raw materials witnessed stability since