What was Saudi Paper Manufacturing's net profit in Q1 2026?

Net profit reached SAR 34.15 million, up 65.1% year-on-year.

What drove the increase in sales?

The main reason was the operation of a fifth production line, which increased production capacity by 50% and boosted paper roll sales.

What was the earnings per share (EPS) in Q1?

EPS reached SAR 0.92, compared to SAR 0.56 in the same quarter last year.

Did the company announce any dividends?

The company did not mention any dividends in the results statement.

Saudi Paper Manufacturing Q1 Net Profit Surges 65% to SAR 34.15M

Saudi Paper Manufacturing Co. (2300) announced its Q1 2026 financial results, with net profit surging 65.1% YoY to SAR 34.15 million, supported by a 10% increase in sales to SAR 251.35 million.

Saudi Paper Manufacturing Co. (2300) reported its interim financial results for the three months ended March 31, 2026, posting a net profit of SAR 34.15 million, a 65.1% increase year-on-year. The growth was driven by a 10% rise in sales to SAR 251.35 million.

Key Financial Results

Item	Current Quarter	Same Quarter Last Year	Change %	Previous Quarter	Change %
Revenue	SAR 251.35M	SAR 228.49M	+10.0%	SAR 224.24M	+12.1%
Net Profit	SAR 34.15M	SAR 20.68M	+65.1%	SAR 17.63M	+93.7%
EPS	SAR 0.92	SAR 0.56	+64.3%	—	—

Highlights from the Statement

The company attributed sales growth to increased paper roll sales from the operation of a fifth production line, which raised production capacity by 50% and helped meet growing market demand. Gross profit margin improved due to higher sales volumes, reduced general and administrative expenses through cost adjustments and streamlining, and lower selling and distribution expenses.

On a quarter-on-quarter basis, revenue increased 12.1% and net profit surged 93.7%, driven by improved gross profit from the sales increase and better margins, along with decreased financing expenses, reduced provision for impairment of receivables, and lower general and administrative expenses.

Guidance

The company did not provide any forward guidance in its statement.

Impact on Stock

The strong results are expected to positively impact the stock (2300) in today's trading, as earnings surpassed expectations and revenue grew significantly.

What This Means for Investors

The results show a substantial improvement in the company's operational and financial performance, with increased production capacity and improved margins. However, investors should monitor the sustainability of this growth amid competition and raw material costs.