MEPCO net profit falls 29% to SAR 4 mln in Q1 2020

Middle East Paper Co. (MEPCO) reported a 29% slump year-on-year (YoY) in net profit after Zakat and tax to SAR 4 million for Q1 2020 as compared to SAR 5.8 million for the same period last year.

The company attributed the drop in profits to lower selling prices, in addition to increase in fair value loss on derivative instruments, and lower other income.

However, this was partially offset by higher sales volume, lower costs of sales per ton, lower general and administrative expenses, allowance for impairment of receivables, and lower sales, distribution and finance costs.

On a sequential basis, net profit increased by 17.3%. Higher profit was attributed to increase in sales volume as well as lower cost of sales per ton and decline in sales and distribution expenses.

However, this was partially offset by lower selling prices, higher general and administrative expenses, increase in fair value loss on derivative instruments, and lower other income and Zakat expenses.

According to data compiled by Argaam, MEPCO posted a net profit of SAR 3.52 million in Q4 2019.