Saudi Paper H1 2026 Profit Rises 144% to SAR 84.5 Million as Revenue Grows

Saudi Paper Manufacturing Co. reported a 144.3% year-on-year increase in net profit for the first half of 2026, with earnings reaching SAR 84.49 million compared with SAR 34.58 million in the corresponding period of 2025, according to the company's financial results.

Revenue for the six-month period increased 14.7% to SAR 501.40 million, up from SAR 437.01 million a year earlier. Gross income rose 19.3% to SAR 167.15 million, while operating income advanced 68.3% to SAR 95.87 million.

The company attributed the increase in revenue to higher paper segment sales volumes following the commissioning of Production Line No. 5, which increased production capacity, as well as improved margins.

Saudi Paper said profitability was also supported by lower selling and administrative expenses, a smaller impairment provision for trade receivables, higher earnings from an associate, and increased other income during the period. The company noted that the corresponding period in 2025 included foreign exchange translation losses on a foreign currency loan, which weighed on earnings.

For the second quarter of 2026, Saudi Paper reported net profit of SAR 50.35 million, compared with SAR 13.90 million in the same quarter of 2025, representing an increase of 262.3%.

Second-quarter revenue rose 19.9% year on year to SAR 250.05 million, while gross income increased 21.7% to SAR 86.09 million. Operating income more than doubled, rising 101.6% to SAR 53.41 million.

Earnings per share for the first half of 2026 increased to SAR 2.28 from SAR 0.93 a year earlier, while second-quarter earnings per share rose to SAR 1.36 from SAR 0.37.