MEPCO losses widen to SAR 18.4M in Q1 2024

Middle East Paper Co.’s (MEPCO) losses widened to SAR 18.4 million in the first quarter of 2024 from SAR 6.6 million in the same period last year.

Compared to the previous quarter, MEPCO narrowed its net losses from SAR 35.7 million.

The company reported a 3% year-on-year (YoY) retreat in selling prices. It also witnessed a decline in gross profit margin (GPM) to 13% from 16%, as profit margin dropped by SAR 2.8 million on lower selling prices and higher cost of sales.

General and administrative expenses increased by SAR 9 million, including SAR 2 million from the start of the Juthor factory’s operation, in addition to SAR 3 million from increasing employee expenses.

MEPCO posted a reclassification of production, sales, and distribution expenses of 3.5 million.

In addition, financing and Zakat expenses jumped by SAR 5 million from increased borrowing and bank profit rates. Zakat widened despite incurring losses due to the calculation of Zakat on the new capital.

This came despite an increase in sales volume of 14,000 tons due to the opening of the Juthor factory in Q2 2023 and a decrease in selling and distribution costs by SAR 1 million.

MEPCO posted a decrease of SAR 2 million in impairment losses in addition to SAR 7 million in financing revenues from bank deposits.

Shareholders’ equity, after minority interest, reached SAR 1.66 billion as of March 31, 2024, compared to SAR 1.17 billion in the prior-year period.

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