Saudi Paper Manufacturing Co. turned to a net profit after Zakat and tax of SAR 9.2 million for the first nine months of 2020, against a net loss of SAR 16.2 million a year earlier.
The nine-month period results were driven by higher sales and a decline in productions costs. However, the company’s net profit was hit by SAR 11.3 million worth of provisions, compared to a reversal of SAR 40.3 million provision a year earlier.
In Q3 2020, the company turned to a net profit after Zakat and tax of SAR 4.1 million, against a net loss of SAR 24.2 million a year earlier, thanks to a decline in the costs of paper pulp and other production costs along with better operating efficiency. Moreover, selling, general and administrative expenses as well as finance costs decreased.
When compared to the previous quarter, net profit increased by 4.85, thanks to a decline in selling, general and administrative expenses as well as Zakat charges.