‎Paper Home earmarks SAR 60M for expansion

‎<p><img src="https://argaamplus.s3.amazonaws.com/9d37141c-2fce-4dc6-8fc2-2d63e1638dd4.png" ></p> <p ><span class="ckeCaption" >Faisal Al-Maghrabi, CEO and Managing Director of Paper Home Co.</span></p> <hr> <div data-olk-copy-source="MessageBody" ><a href="https://www.argaam.com/en/tadawul/nomu/paper-home/organizationemployhistory/faisal-yaqub-al-maghrabi/8278" target="_blank">Faisal Al-Maghrabi</a>, CEO and Managing Director of <a href="https://www.argaam.com/en/tadawul/nomu/paper-home" target="_blank">Paper Home Co.</a>, said the profit growth during the first half of 2026 was driven by improved operational efficiency and increased production capacity.</div> <div data-olk-copy-source="MessageBody" ></div> <div >This is coupled with higher sales to several key customers, improved marketing performance, and tighter control over operating costs, he added in an interview with <span ><strong>Argaam</strong></span>.</div> <div ></div> <div> <p >Al-Maghrabi further explained that the company added a new production line to meet rising market demand, raising its production capacity during H1 2026 to around 17,000 tons, compared with 12,000 tons in H1 2025. He expects capacity to increase to around 20,000 tons in H2 2026.</p> <p ></p> <p >He added that an improved product mix and stable supply chains, together with growing demand for paperboard packaging products, supported the company’s revenue during the six-month period.</p> <p ></p> <p >As regards the impact of regional conditions, Al-Maghrabi said geopolitical volatility affected shipping costs and prices of imported raw materials, particularly raw paper, while also causing global price fluctuations.</p> <p ></p> <p >“We are working to mitigate the impact of these factors by diversifying our supply sources and relying relatively more on the domestic market, which has helped reduce the impact of price volatility compared with peers that are more dependent on imports,” said the CEO.</p> <p ></p> <p >Prices of the company’s paper and cardboard products rose by around 3% year-on-year, reflecting fluctuations in global raw material prices. Product prices are expected to remain relatively stable during the second half of the year, with the possibility of slight increases depending on developments in raw material costs, according to the top executive.</p> <p ></p> <p >Al-Maghrabi also revealed that Paper Home is currently evaluating several expansion opportunities through its relevant committees, noting that it has allocated around SAR 60 million for business expansion. Details of these opportunities will be announced once the relevant procedures have been completed.</p> <p ></p> <p >Regarding plans to move to Tadawul’s Main Market, Al-Maghrabi said the company is evaluating the available options for making the transition during the current year, with any material developments to be announced in accordance with the requirements of the Capital Market Authority.</p> <p ></p> <p >According to data available with <strong >Argaam</strong>, Paper Home’s net profit to SAR 10.9 million in <a href="https://www.argaam.com/en/financial-reports/company-report/15976/2026/71" target="_blank">H1 2026</a>, up 61% from SAR 6.7 million in the same period a year earlier.</p> </div>

Publication

Argaam - Main News · Trade Publication

Published

18th August 2026

Original report

argaam.com

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