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NewsTranscript
00:00 The company recently announced its results, which were in line with expectations.
00:05 The company has been achieving good growth rates and rising profits for four years.
00:13 In 2024, the company increased its purchasing power and increased its market share.
00:22 This resulted in a profit of 5.5%, which increased from $1 million in 2017 to $229 million.
00:33 The total income increased from $52 million to $81 million, which is 56%.
00:40 The net income increased by 324% as a result of increased sales and the policy of purchasing power.
00:48 We have greatly reduced the price of raw materials.
00:52 The pulp is 70% of the production cost.
00:58 The company was able to meet its needs for six months in advance at excellent prices.
01:04 Signing agreements guarantees a large profit at the end of the year.
01:09 The price of raw materials was also reasonable, and prices have started to rise.
01:19 How large were the sales of the company in this quarter?
01:25 In general, all our products are sold.
01:30 We have seen a steady increase in sales in recent years.
01:41 What about the production volume?
01:44 In addition to the last opening of the factories and the entry of the service?
01:50 Last year, we opened the production unit with 30,000 tons.
01:57 This is the first time in April.
02:01 The company was able to sell all the production.
02:06 We have no storage left.
02:08 This has a positive effect on the company's production.
02:12 What about the debt and the amount of loans you pay?
02:18 How much is paid at the moment?
02:21 Is there a policy to reach a debt zero in the coming years?
02:26 In the last four years, the company's debt was approximately 400 million Riyals.
02:31 This amount was a huge amount.
02:33 The amount of debts and the benefits were double the company's financial situation.
02:38 Thankfully, the company was able to pay 400 million Riyals in the last four years.
02:45 The total debt is 419 million Riyals.
02:48 296 million Riyals are long-term debts.
02:51 The annual capital is 119 million Riyals.
02:54 The company's annual capital is 110 million Riyals.
02:58 Did the increase in the company's costs and the high interest rates affect you in general?
03:06 Yes, it did.
03:07 Last year, the company's costs were 14 million Riyals.
03:14 Thankfully, the company was able to maintain the profits.
03:17 Sometimes we increase our market share and sometimes we focus on profits.
03:24 The company was able to achieve reasonable growth rates.
03:30 Let's talk about some of the challenges that many sectors face.
03:34 Let's talk about the supply and demand chains.
03:38 After many companies have relaxed, we are now facing new problems due to geopolitical tensions.
03:45 How do you deal with this situation?
03:48 Do you have enough stockpiles of raw materials to cover the coming months?
03:55 Indeed, we have seen sharp fluctuations in the past few years.
03:59 We have seen many crises, such as the coronavirus crisis, the supply chain crisis, and the current red sea crisis.
04:06 We know that industrial companies have a stockpile that covers two to three months.
04:14 However, the company has changed its purchasing policy.
04:17 We had to secure our needs for six months, avoiding any fluctuations that the market has witnessed.
04:24 Indeed, the company has allocated 190 million Riyals to secure its needs for six months in advance.
04:33 As we know, the prices of energy have increased locally and internationally.
04:38 How is this affecting the company?
04:41 Could this be a result of a rise in prices?
04:46 Indeed, there is an increase in the price of diesel by 53%.
04:53 The company has taken this into account and is communicating with our customers to increase prices.
04:59 However, the company relies heavily on gas and the prices of gas are very suitable for production.
05:09 Mr. Yousri, regarding your domestic expansion in the Kingdom and abroad, what are the plans and what are the additions to the Dubai market?
05:18 The company has carried out many studies.
05:22 We have seen that the Saudi market is one of the best markets in the world and the Kingdom has witnessed stability, security and safety.
05:30 The company has expanded its production capacity in the first year.
05:34 We are currently expanding the production capacity by 60,000 tons.
05:39 We have installed a machine and we have contracted a sixth machine.
05:43 We have signed a memorandum of understanding.
05:45 In view of the increasing demand in the Arab region, the company opened branches in Dubai.
05:53 The goal is to increase the company's exports.
05:56 Indeed, the company's exports increased from 7% to 13%.
06:01 It is expected that the company will increase its market share in neighboring countries, God willing.
06:08 Mr. Yousri, in the last question, what is your future plan and what is the situation with the distribution and the contracts for customers?
06:15 Distributions may be a hotbed as a result of this to increase the market share.
06:21 Indeed, the company has been away from distribution for about 11 years.
06:26 However, in view of the company's liquidity improvement and in view of the strength and stability of its financial situation,
06:33 the company has recently distributed 5% of its profits to contributors and increased capital.
06:39 It has also granted 10% of its shares for free to deal with the new situation of the company and the numbers achieved.
06:48 God willing, if the growth rates continue in the same way and in the same pace,
06:53 we expect that the company will be in the same path, God willing.
06:59 Thank you, Mr. Yousri Al-Bushri, the CEO of the Saudi paper industry.