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Saudi Paper Manufacturing Co. announces the interim financial results for the period ending on 31-03-2018 (Three Months)

SPM 2300 -0.27% 36.55 -0.10
Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) 4.7 -6.3 - -33.8 -
Gross profit (loss) 40.1 27.6 45.29 32.3 24.15
Operational profit (loss) 11.7 2.2 431.82 -16.5 -
Earning or loss per share, Riyals 0.1 -0.14 - - -
All figures are in (Millions) Saudi Arabia, Riyals
Element EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year Net profit increase by 174% compared with same quarter last year is due to increase in sales and higher gross margin, value and percentage.
Reasons of increase (decrease) for quarter compared with previous quarter Net profit increase by 114% compared with previous quarter is due to increase in sales and higher gross margin, value and percentage.
Other notes Sales for the period ended March 31,2018 increased by 32.5% to SAR 170.3 Million compared to SAR 128.5 Million for the same period of the last year, and increased by 33.6% to SAR 170.3 Million in the current period compared to SAR 127.5 Million for the previous Quarter. Total comprehensive income of the owners of the company for the period ended March 31,2018 increased by 4995% to SAR 22.9 Million compared to a loss of SAR (0.47) Million for the same period of the previous year, and increased by 159% to SAR 22.9 Million in the current period compared to a loss of SAR (38.4) Million for the previous Quarter. Total shareholders' equity (after excluding minority interest) as at March 31, 2018 decreased by 10.1% compared to March 31,2017 from SAR 335.5 million to SAR 301.6 million. Earnings per share for the period ending March 31, 2108 amounted to SAR 0.10 compared to SAR (0.14) for period ending March 31,2017. Accumulated losses as at March 31,2018 amounted to SAR 205.8 Million, which represents 45.7% of share capital as a result of the financial impact from the application of IFRS in addition to the operating losses for the last three years. The company has achieved a very positive results for the period ending March 31, 2018. We succeeded to live with a number of major challenges including, but not limited to, decrease of the purchasing power, dumping local market by foreign competitors, increase of labor cost and governmental fees imposed by the government on local companies. The company started a restructuring plan mid-2017. The plan included restructuring all major functions and recruiting a team of professional executives and directors who are specialized in paper industry to lead a major change and get the company out of the critical situation existed at that time. We were able to drastically improve sales and production capacity as well as the quality of our products. Improving production capacity resulted in decreasing the fixed costs per ton and therefore, improving profit margins. The company followed the procedures and instructions issued by the Capital market Authority related to the public companies listed on the market, which have accumulated losses over 35% and less than 50% of its capital as stipulated by the Board of the Capital Market Authority, Resolution No. 1-130-2016 dated 24/10/2016.

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