Saudi Paper Manufacturing Company’s net profit increased by 54.85% in 2022, to about 46.89 million riyals, after zakat and taxes, compared to about 30.28 million riyals in 2021.
And the “Paper Industry” said in a statement in “Saudi Tadawul”, today, Sunday, that the increase in net profit in 2022 is due to the significant increase in sales, through an increase in the company’s market share and growth in demand for its products, which resulted in an improvement in value and gross profit percentage.
He added that this is despite the high prices of cellulose raw materials prime and goods in global and local market.
The company was impacted by the global supply chain crisis, which worsened in mid-2022, and affected the company’s production and achievement of better results.
The paper industry said that it has made great efforts to meet the requirements and needs of the local market by building up a stock of raw materials prime which covers its needs until mid-2023 AD and covers the planned start-up of the new production line no. 2.
He added that this will help support the implementation of the company’s plan to produce the maximum possible capacity without disruption and meet its expansion and redeployment goals to support the distribution of finished products from paper rolls and ready-made products.
He explains that the increase in the bank interest rate has had an impact on a significant increase in borrowing costs in the year 2022, and this has not affected the company’s fulfillment of timely payment of loans, interest and other obligations and the reduction of long and medium-term bank loan balances.