Yousri Al-Bishri, CEO of Saudi Paper Manufacturing Co.
Saudi Paper Manufacturing Co.’s agreement to purchase raw material contributed significantly to purchasing large quantities of inventory at competitive prices, which helped build a strategic inventory and reduce fluctuations in global market prices and shipping prices, thus maintaining the planned profit margins, said CEO Yousri Al-Bishri.
In an interview with Argaam, Al-Bishri stated that this affected the gross profit by 34.6% in Q2 2024, compared to 27.7% in the same period a year ago.
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Commenting on the second quarter’s financial results, he explained that the 28% drop in Q2 2024 net profit quarter-on-quarter is due to the decrease in sales volume, as the second quarter coincided with the official holidays and the cessation of major customers from receiving shipments during that period.
Al-Bishri pointed out that sales of paper rolls and converted products amounted to SAR 392 million, while the percentage of export sales reached 9% by the end of the second quarter.
Provisions for accounts receivable fell by SAR 1.9 million in Q2 2024 compared to the same period a year ago, according to the top executive.
He also said that the company’s capital increase by 10% aims to support its capital base, which contributes to enhancing future growth plans and maximizing total returns for shareholders.
The CEO expected the positive performance to continue, given the decline in financing and production costs and the return of economic activity after the holidays.
According to Argaam’s data, Saudi Paper posted a profit jump to SAR 62.3 million in H1 2024, from SAR 29.7 million in the year-earlier period.
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