‎Saudi Paper posts strong results in Q1 2022, expects excessive question to proceed in Q2: CEO

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Saudi Paper Manufacturing Co. CEO Yousseri Elbishry


Saudi Paper Manufacturing Co. (SPM) reported a worthy home of results for basically the most indispensable quarter of 2022, amid global supply chain challenges and elevated inflation charges, CEO Yousseri Elbishry told Argaam in a phone interview.

The worldwide supply chain crisis elevated the cost of raw supplies, because the cost of pulp paper and packaging supplies jumped 60% and 25% twelve months-on-twelve months, respectively.

Provide is low amid an ongoing supply chain, whereas native and global suppliers are unable to meet the agreed time limits. Check of for merchandise is witnessing a considerable upward push, as gross sales grew by 23%. Orders were standard by the quit of basically the most indispensable quarter of the twelve months, and production became once fully lined by buyer orders, Elbishry acknowledged, expecting excessive question to stay within the second quarter of 2022.


 

SPM’s exports are estimated at SAR 20 million – nearly equivalent to the old quarter’s level – which account for 10% of gross sales.

On completely different hand, he explained that the firm financed working capital by SAR 36 million to assemble strategic stock of pulp to be definite operational continuity. The Tadawul-listed firm additionally bought a brand novel paper production line to ramp up its production capability by 32%, to reduce production expenses per ton and beef up its geographical attain across the teach.

The production capability of Kuwait-based mostly Al-Juthoor Paper Tissue Manufacturing Plant elevated by 4,200 tons yearly to 10,200 tons yearly on expansion. The plant contributed 2% to the firm’s first-quarter in finding income, Elbishry added, expecting this contribution to double, based totally on a gradual expand in capability.

The firm’s provisions stood at almost SAR 153 million, represented by buyer debts, stock provisions, quit-of-service provisions, and a lot of others.

The firm’s Q1 2022 in finding income dropped to SAR 133 million, from SAR 14.1 million within the prior-twelve months period, Argaam reported.