The Saudi Paper Manufacturing Company achieved a profit of 15.1 million riyals during the year 2020, compared to 27.88 million riyals losses during 2019.
According to Arabnet, the company said in a statement that the reason for achieving profits is due to the increase in sales, and that the decrease in the cost of production contributed to improving the overall profit due to the availability of stocks of raw materials at an appropriate price, reducing other production costs and improving the efficiency of production processes.
Another reason for the improvement is the decrease in administrative expenses, selling and distribution expenses, and financing expenses. The profits of the current period were also reduced by the value of allocations amounting to 13.65 million riyals. Note that in the same period of the previous year, the provision for commercial receivables amounted to 31.4 million riyals was reversed, compared with 2.8 million riyals for the current period.
During the last quarter of last year, the company’s net profit amounted to 6.24 million riyals, compared to 11.39 million riyals losses during the corresponding period of last year.
The company said that the reason for achieving profits in the fourth quarter is due to the lower cost due to the availability of stock of raw materials at an appropriate price, reducing other production costs and improving the efficiency of operating operations, despite the increase in paper pulp prices in the last quarter of the current year.
In addition, the decrease in selling and distribution expenses and administrative expenses, and the decrease in zakat provision. Due to the improvement in collection performance during the current quarter, the provision for trade receivables has been reduced. Knowing that the current quarter's profits have been reduced by the value of allocations amounting to 3.2 million riyals.