Jeddah, Saudi Arabia: The Middle East Paper Co. (‘MEPCO’), the region’s leading vertically-integrated paper manufacturer, has announced its interim financial results for the six months ended 30 June 2018. Net profit of SAR 57 million in the first half increased by 166% on H1 2017.

STRATEGIC HIGHLIGHTS

  • Stabilisation of pricing trends since Q3 2017, with global containerboard pricing currently robust.
  • Improved demand in global markets, as well as increased product diversification is directly and positively impacting profitability.
  • Further cost optimisation measures have continued to positively impact performance.

Eng. Sami Safran, Chief Executive Officer, comments:

“We are pleased to announce continued improvement in year-on-year performance and we are also comfortable with our performance in Q2. On a YTD basis, operating and financial performance is very much on track and according to plan. Improved sales revenues have primarily been driven by stabilized market pricing, which has occurred since Q3 2017, along with a higher level of product diversification, which has positively influenced profitability. Demand for containerboard locally, in MENA and internationally continues to grow. Recently, we have allocated higher volumes[1] to the local market, which is now 59% of total sales as compared with 54% in the first half of 2017.” 

OPERATING REVIEW

Sales performance

Total sales of SAR 444 million in H1 2018, as compared with SAR 353 million in H1 2017 improved by 25.6% on a year-on-year basis. In Q2 2018, total sales of SAR 219 million declined slightly from SAR 225 million in Q1 2018, representing a decrease of 2.9%. Consolidated sales volumes decreased slightly on a year-on-year and quarterly basis, due to volume decreases for the subsidiary WASCO. Drivers for improved year-on-year sales performance include a stabilized international and regional pricing environment and increased allocation to non-export distribution.

Operational update[2]          

Ongoing cost optimization efforts have continued to positively impact performance across the manufacturing process. Meanwhile, the activation of newly introduced SAP systems across business verticals and subsidiaries has improved the structural and operating efficiency of the company.

[1] Refers to MEPCO standalone volumes

[2]   Refers to MEPCO standalone volumes

Click here for more details

© Press Release 2018

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.