MEPCO turns to SAR 90.3M loss in 2023; Q4 at SAR 45.7M

Middle East Paper Co. (MEPCO) swung to a net loss of SAR 90.3 million for 2023, against a net profit of SAR 269.7 million a year earlier.

Revenues dropped 27% year-on-year (YoY) on lower selling prices, and gross profit margins fell from 42% in 2022 to 10% in 2023.

In addition, cost of sales increases due to higher sales volume and higher costs of energy, maintenance and employees related to Juthor.

Gross profit also fell by 83% YoY on lower selling prices and higher cost of sales. Moreover, cost of financing increased by SAR 8 million on higher SAIBOR rate for Murabaha loans.   

The company also turned to losses of SAR 35.70 million in Q4 2023, against earnings of SAR 24.79 million a year earlier.

Compared with the previous quarter, the three-month losses increased from SAR 17.85 million.



Shareholders’ equity, after minority interest, reached SAR 1.07 billion as of Dec. 31, 2023, compared to SAR 1.18 billion in the prior-year period.

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