SPM announces the interim consolidated financial results

21/04/2013 10:33 AST

Saudi Paper Manufacturing Company - SPM has announced the interim consolidated financial results for the period ended March 31, 2013:

1. The net income for the first quarter ended March 31, 2013 was SR 0.694 million compared SR 25.42 million for the same quarter in 2012 representing a decrease of 97.26%, and compared SR 26.35 million for the fourth quarter of 2012 representing an decrease of 97.36%

2. The gross profit for the fourth quarter ended March 31, 2013 amounted to SR 36.26 million compared to the same quarter in 2012 of SR 57.14 million representing a decrease of 36.54%

3. The income from operations for the quarter ended March 31, 2013 amounted to SR 6.06 million compared to SR 29.55 million for the same quarter in 2012 representing a decrease of 79.50%

4. The earnings per share for the first quarter ended March 31, 2013 amounted to SR 0.02 compared to SR 0.68 for the same period in 2012.

5. The decrease in net profit for the first quarter ended March 31, 2013 compared to the same quarter in 2012 is due to high cost of recycled paper inventory which approximates sale prices. SPMC expected that its recycled operations will go back to normal profitability level during the second quarter of 2013. Also due to the expansion of paper conversion operations in Turkey and Morocco as production and sales has not reached the breakeven point. SPMC expects to surpass the breakeven point during the third and fourth quarter of 2013.

6. Comparative numbers has been restated to counterpart the presentation of the current period.

7. Certain prior period figures have been re-classified to confirm with presentation in the current quarter.

Tadawul