The Saudi Paper Manufacturing Co. reported a net profit increase by 54.85% in 2022 to 46.89 million riyals after zakat and tax, compared to 30.28 million riyals in the year-earlier period.
The Dammam-based company stated that the growth in its net profit was due to the noticeable upswing in sales brought about by an increase in market share and growth in demand for its products, which led to an improvement in the value and percentage of the gross profit.
The paper manufacturer said that this was achieved despite the high prices of pulp and freight in the global and local markets, and the challenges faced by the global supply chains that worsened during the middle of 2022.
Saudi Paper said that it had taken great efforts to meet local market requirements by building a stock of raw materials that would cover the needs until mid-2023. The start of a new production line is also expected to increase production capacity without interruption and meet its goals of expansion and redeployment to support the distribution of hygienic paper rolls and related products.
The company also explained that though the increase in bank interest rates had an impact on financial expenses in the year 2022, it did not affect the company’s timely payment of loan balances, interests, and other financial obligations of long and medium-term loans.
