Saudi Paper’s margin lifted by purchasing policy; paper roll market share at 40%: CEO

Yousseri El bishry, CEO of Saudi Paper Manufacturing Co.

Saudi Paper Manufacturing Co.’s CEO Yousseri Elbishry said that amending the company's purchase policy significantly increased profit margins in the first quarter of 2024.

The company allocated SAR 190 million to purchase a strategic feedstock, Elbishry told Al-Arabiya.

He added that several long-term agreements were signed with major supplier companies worldwide. In addition, the company reserved large quantities of raw materials that cover its needs for a period of six months before the price surge.

Saudi Paper has focused on increasing profitability margins during the current period by controlling expenses and materials involved in the manufacturing process.

The CEO further pointed out that the company's strong financial position allowed it to repay some long-term loans, which reduced the financing cost by SAR 1.4 million.

The company worked to increase its market share during the last period, Elbishry noted, adding that it ranked first in the tissue paper rolls sector with a 40% share in Saudi Arabia. Moreover, the company’s ranking in finished products ranged between first and third in the market.

The company aims to maintain profit margins and achieve growth rates that meet ambitions in 2024. The company realized such aims in recent years, the CEO highlighted, noting that Q1 2024 results confirm that the company is moving in the right direction.

Saudi Paper’s production volume of tissue paper rolls reached 107,000 tons per month, all of which is sold each month. Elbishry indicated that the production capacity is currently being expanded by installing a 60,000-ton machine.

The company invested approximately SAR 17 million in its factory in Dammam to increase production capacity, improve product quality, and reduce costs by installing automatic packaging machines. In addition, Saudi Paper invested SAR 11 million to establish a factory in Kuwait, which contributed to increasing sales and improving profitability.

According to data available on Argaam, Saudi Paper’s profit rose to SAR 36.3 million in Q1 2024, compared to SAR 8.6 million in Q1 2023.