MEPCO’s Q1 2022 performance backed by selling prices, stable manufacturing cost: CEO

Sami Al Safran, CEO, Middle East Paper Co.

Middle East Paper Co.’s (MEPCO) performance during Q1 2022 was supported by current selling prices, in addition to the stable manufacturing cost, especially raw materials, at the local level, CEO Sami Al Safran said in a report issued by the company.

Al Safran added that, during Q1 2022, the company has kept up its outstanding performance in 2021, as it continues to record higher levels of profitability at all levels.

He expected the company’s Q2 2022 results to be in line with the first quarter. MEPCO managed to cope with the global selling prices, which have shown no signs of decrease until now, the CEO said.

He noted that the global logistics crisis affected the shipping rates of the company's products in Q1 2022, which led to a decline in shipment volume. Speaking on the hygienic paper jumbo rolls production plant, Al-Safran said that MEPCO received initial parts of the machine from its Italian partner, Toscotec, confirming the project is meeting its schedule timetable.

MEPCO reported a net profit after Zakat and tax of SAR 92.4 million in Q1 2022, compared to SAR 17.7 million a year earlier, according to data compiled by Argaam.