Saudi: MEPCO turns to losses in 2023; revenues down 27%

PHOTO

Riyadh – Middle East Paper Company (MEPCO) shifted to net losses valued at SAR 87.63 million in 2023, against a net profit of SAR 270.73 million in 2022.

The revenues witnessed an annual plunge of 26.98% to SAR 866.75 million in the January-December 2023 period, compared to SAR 1.18 billion, according to the financial results.

Loss per share hit SAR 1.20 in 2023, versus earnings per share (EPS) of SAR 4.05 in 2022.

Musab Sulaiman Al Muhaidib, Chairman of MEPCO, said: “The decline in international prices had a negative impact that led to a decrease in the profit margin to 9% for the year 2023 compared to 23% for the year 2022.”

“The decrease in profitability is temporary due to the decrease in global demand for packaging paper after the global markets recovered from the Corona pandemic, which affects the financial performance of paper companies globally,” Al Muhaidib continued.

He underlined: “However, the local demand is still healthy and with the continued increase in sales of the tissue paper sector, we expect to achieve profits by the first quarter of 2024 that will contribute to reducing the negative impact of the decline in global prices for packaging paper.”

As of 30 September 2023, MEPCO incurred net losses worth SAR 50.15 million, compared to a net profit of SAR 246.81 million in the year-ago period.