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‎Saudi Paper sees higher selling prices in Q4: CEO

October 30, 2023
in Business
‎Saudi Paper sees higher selling prices in Q4: CEO
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Saudi Paper expects higher selling prices in Q4 2023: CEO

Yousseri Elbishry, Saudi Paper CEO

Saudi Paper Manufacturing Co. expects an increase in selling prices during the fourth quarter of 2023, due to the rise in global pulp prices. It also predicts to maintain its strong performance, thanks to the continuous demand for its products, said CEO Yousseri Elbishry.

In an interview with Argaam, the top executive indicated that pulp prices have been recently on the rise in global markets. However, Saudi Paper is constantly monitoring the pricing, while building a strategic inventory at competitive prices that would cover its needs until February 2024, in order to maintain fair profit margins.

He also said that the year-on-year (YoY) hike in Saudi Paper’s Q3 2023 net profit was driven by a 20.9% YoY sales growth, as a result of the increase in sales of paper rolls and transformative products. This contributed to a YoY surge in gross and net profit of 73.9% and 261.2%, respectively.

Moreover, Saudi Paper’s production capacity rose by 31% YoY, with no significant increase in fixed costs, which in turn improved the company’s profitability. This expansion is reflected in an uptick in sales volumes, hence higher earnings, according to the CEO.

Elbishry pointed out that export sales represent about 6% of the total, given the size of the local market, with the company prioritizing meeting the local market’s needs before expanding abroad.

Saudi Paper posted a 28% profit rise in the first nine months of 2023 to SAR 52.1 million, from SAR 40.6 million in the year-earlier period. The Q3 profit amounted to SAR 22.4 million, according to Argaam’s data.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Argaam EN – https://www.argaam.com/en/article/articledetail/id/1680259

Tags: business‎PaperSaudi
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