The Middle East Paper Co (Mepco), a leading vertically-integrated paper manufacturer in the region, has reported a 22 per cent increase in net profit from SR18.2 million ($4.85 million) in the second quarter to SR22.2 million ($5.91 million) in the third quarter of 2017.

Gross profit for the third quarter was SR55.3 million ($14.74 million), an increase of 92 per cent as compared to the same quarter of last year and an increase of 22 per cent as compared to the previous quarter in 2017, said a statement from the company.

Eng Sami Safran, CEO of Mepco, said: “We are pleased to announce continued improvements in performance during this year. Recent net profit and gross profit growth has been driven mainly by increases in sales value, sales volume and improvements to average selling prices.”

“While the impact of these growth drivers is partially offset by increases in the cost of sales per ton and operating expenses, we are pleased with our growth this year,” he said.

Operational profit in the third quarter of 2017 was SR27.7 million ($7.38 million), an increase of 198 per cent compared to the same quarter last year, and an increase of 6 per cent on the previous quarter.

Earnings per share (EPS) stood at SR0.87 on a year-to-date (YTD) basis. A year-on-year decrease of 60 per cent on net profit for the current period was due to the recording of a non-recurring profit of SR92 million ($24.53 million) in 2016, resulting from the expropriation of land and premises.  

Dr Mohamed Saleh Darweesh, chief finance officer, Mepco, said: “Sales revenues for the third quarter reached SR212.7 million ($56.71 million), delivering a year-on-year increase of 44 per cent and an increase of 14 per cent on the previous quarter of 2017, when we achieved sales revenues of SR186.7 million ($49.78 million).”

“On a year-to-date basis, our sales revenues have exceeded SR566 million ($150.92 million), compared to SR489.5 million ($130.52 million) for the corresponding period of 2016. This is an increase of 16 per cent, and a clear testament to the continued success of our growth strategy,” he said.

Mepco’s total shareholders' equity during the current period amounts to SR699.6 million ($186.54 million).

The company has adopted International Financial Reporting Standards (IFRS), effective from January 1, it stated. – TradeArabia News Service