Saudi Paper Manufacturing Company (SPM), a leading tissue paper producer in the GCC, has reported a sharp rise in profitability for the second quarter and first half of 2026, supported by the ramp‑up of its new production line and improved margins.
For the three months ended 30 June 2026, the company’s net profit attributable to shareholders climbed to SAR 50.35 million, an increase of 262.2% from SAR 13.90 million in the same period of 2025, according to its interim financial results disclosed on the Saudi Exchange (Tadawul).
Q2 2026 performance
Second‑quarter sales rose 19.9% year on year to SAR 250.05 million, compared with SAR 208.53 million in Q2 2025. Gross profit increased 21.7% to SAR 86.09 million, from SAR 70.72 million a year earlier, while operating profit more than doubled, up 101.6% to SAR 53.41 million from SAR 26.49 million.
The company reported a gross margin of 34.43% for the quarter, reflecting higher production capacity, increased sales volumes and improved average selling prices in its paper manufacturing operations. Total comprehensive income attributable to shareholders reached SAR 50.21 million, compared with SAR 14.30 million in Q2 2025.
On a sequential basis, Q2 2026 net profit rose 47.4% from SAR 34.15 million in the first quarter, while sales edged down 0.5% from SAR 251.35 million.
|
Metric
|
Q2 2026 (SAR m)
|
Q2 2025 (SAR m)
|
YoY change
|
|
Sales / Revenue
|
250.05
|
208.53
|
+19.9%
|
|
Gross profit
|
86.09
|
70.72
|
+21.7%
|
|
Operating profit
|
53.41
|
26.49
|
+101.6%
|
|
Net profit attributable to shareholders
|
50.35
|
13.90
|
+262.2%
|
|
Total comprehensive income (attrib.)
|
50.21
|
14.30
|
+251.1%
|
|
Gross margin
|
34.43%
|
–
|
–
|
Strong first‑half results
For the six months ended 30 June 2026, sales amounted to SAR 501.40 million, up 14.7% from SAR 437.01 million in the first half of 2025. Gross profit increased 19.3% to SAR 167.15 million, compared with SAR 140.07 million a year earlier, and operating profit rose 68.3% to SAR 95.87 million from SAR 56.96 million.
Net profit attributable to shareholders for the period reached SAR 84.49 million, an increase of 144.3% from SAR 34.58 million in H1 2025. Earnings per share stood at SAR 2.29, compared with SAR 0.94 a year earlier, while total shareholders’ equity (after minority interests) rose 17.8% to SAR 645.45 million from SAR 547.83 million.
|
Metric
|
H1 2026 (SAR m)
|
H1 2025 (SAR m)
|
YoY change
|
|
Sales / Revenue
|
501.40
|
437.01
|
+14.7%
|
|
Gross profit
|
167.15
|
140.07
|
+19.3%
|
|
Operating profit
|
95.87
|
56.96
|
+68.3%
|
|
Net profit attributable to shareholders
|
84.49
|
34.58
|
+144.3%
|
|
Total comprehensive income (attrib.)
|
84.09
|
35.04
|
+140.0%
|
|
EPS (SAR)
|
2.29
|
0.94
|
+143.6%
|
|
Shareholders’ equity (after minority)
|
645.45
|
547.83
|
+17.8%
|
Sequential performance
|
Metric
|
Q2 2026 (SAR m)
|
Q1 2026 (SAR m)
|
QoQ change
|
|
Sales / Revenue
|
250.05
|
251.35
|
−0.5%
|
|
Gross profit
|
86.09
|
81.06
|
+6.2%
|
|
Operating profit
|
53.41
|
42.46
|
+25.7%
|
|
Net profit attributable to shareholders
|
50.35
|
34.15
|
+47.4%
|
|
Total comprehensive income (attrib.)
|
50.21
|
33.88
|
+48.3%
|
Capacity expansion and other drivers
SPM said its improved performance was driven primarily by the commissioning and commercial operation of the Toscotec-supplied PM5, which enhanced paper manufacturing capacity and supported higher sales volumes, alongside better average selling prices and higher margins per ton.
The company also highlighted lower selling and administrative expenses, a reduction in impairment provisions for trade receivables, and a higher share of profit from associate companies as contributors to the profit increase. In addition, profitability benefited from higher other income and the absence of foreign exchange losses on a foreign currency loan, which had negatively affected the corresponding period of the previous year.
