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‎Saudi Paper market share exceeds 40% in 2023: CEO

March 17, 2024
in Business
‎Saudi Paper market share exceeds 40% in 2023: CEO
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Saudi Paper market share exceeds 40% in 2023: CEO

Yousri Al-Bishri, CEO of Saudi Paper Manufacturing Co.

Saudi Paper Manufacturing Co.’s (SPM) market share reached approximately 40.6% by the end of 2023, CEO Yousri Al-Bishri told Argaam.

He added that higher 2023 earnings were driven by robust sales of paper rolls after the operation of the new production line in April 2023. This in turn contributed to increasing sales by 31% to meet the needs of the local and regional markets.

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The sales of manufacturing products increased significantly, in line with the company’s strategy to enhance its market share, develop its products, foray into new markets, and have greater geographical access, the top executive said.

He added that boosting the company’s production capacity also contributed to the optimal utilization of human and financial resources, which was reflected in lower production costs.

Sales of paper rolls and manufacturing products amounted to SAR 977 million, including sales of subsidiaries. Meanwhile, export sales constituted 13% of SPM’s total sales by the end of Q4 2023.

Production costs, after installing the new line, fell by 12.5% of fixed production costs, Al-Bishri said.

He added that the prices of pulp and raw materials rose marginally, noting that SPM maintains its profit margins through aligning selling prices with the costs of raw materials.

The paper manufacturer did not have to take new provisions for poor sales, due to its effective policies and procedures, which improved the collection performance, the CEO said. He indicated that the percentage of debts overdue for more than one year is 5.7%.

Looking ahead, the company will likely maintain robust performance and sales growth, according to Al-Bishri.

SPM posted a 55.5% profit rise to SAR 72.9 million in 2023, from SAR 46.9 million a year earlier. The fourth-quarter bottom line more than tripled to SAR 20.8 million, according to data available with Argaam.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Argaam EN – https://www.argaam.com/en/article/articledetail/id/1713182

Tags: business‎PaperSaudi
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