On 2026-08-06 08:07:32 (Saudi Time), Saudi Paper Manufacturing Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue increased by 14.734% YoY to SAR 501.4 million from SAR 437.01 million, driven by higher sales volumes in the paper manufacturing segment following the commissioning of Production Line No. 5, which expanded production capacity, alongside improved average selling prices and profit margins. Net profit attributable to shareholders surged by 144.331% YoY to SAR 84.49 million from SAR 34.58 million, primarily due to a gross profit improvement of approximately SAR 27.1 million stemming from the higher sales volumes and better margins, further supported by lower selling and administrative expenses, a reduction in the impairment provision for trade receivables, higher earnings from the Company's share of results of its associate, the absence of foreign exchange losses on a foreign currency loan that were recognized in the prior period, and higher other income recorded in the current period.

Quarter-on-Quarter Performance Drivers

QoQ revenue was nearly flat, declining marginally by 0.5% to SAR 250.05 million from SAR 251.35 million in the previous quarter, as the company maintained a steady pace of sales. However, net profit surged 47.437% QoQ to SAR 50.35 million from SAR 34.15 million, driven by improved profit margins, lower operating expenses, and a reduction in the impairment provision for trade receivables. The gross profit margin expanded to 34.43%, reflecting better cost efficiency and higher average profit margins per ton following the commissioning of Production Line No. 5.

Other Items

The external auditor issued an unmodified conclusion on the condensed consolidated interim financial statements for the six-month period ended 30 June 2026. The auditor's report includes an other matter paragraph noting that the Group's financial statements for the year ended 31 December 2025 were audited by a different auditor, who issued an unmodified opinion dated 7 Shawwal 1447H (corresponding to 26 March 2026), and that the condensed consolidated interim financial statements as of 30 June 2025 were also reviewed by another auditor, who issued an unmodified conclusion dated 16 Safar 1447H (corresponding to 10 August 2025). No accumulated losses were reported. Total shareholders' equity (after deducting minority equity) stood at SAR 645.45 million as of the current period, compared to SAR 547.83 million in the same period of the prior year, representing an increase of 17.819%. Earnings per share for the current period was SAR 2.29, compared to SAR 0.94 in the same period of the prior year. The weighted average number of shares outstanding for the current period was 36,954,212 shares, based on total shares of 37,070,000 less treasury shares of 115,788. No material risks related to going concern or debt default were disclosed in this announcement.

Original announcement:

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.