The Middle East Paper Company (Mepco), a leading paper manufacturer, has posted net profits of SR28.1 million ($7.5 million) for the first quarter (Q1) of the year, as against SR3.3 million for Q1 2017, marking an increase of 763 per cent.

Sales revenue increased by 35 per cent compared to the same period in 2017 and by 10 per cent on the previous quarter, to reach SR225 million. Profitability levels improved, with operating profit of SR35.1 million increasing by 12 per cent on the previous quarter and by 227 per cent compared with Q1 2017

Gross profit of SR62.1million increased by 16 per cent on the previous quarter and by 96 per cent on Q1 2017. Earnings per share (EPS) of SR0.56, compared with SR0.07 in Q1 2017, improved by 763 per cent.

Sami Safran, CEO of Mepco, said: “It is pleasing to see that our earnings in the first quarter are much improved compared with the same period in 2017. We’ve achieved considerable improvement in financial performance compared to the same period last year. This is the consequence of hard work within the Company, not only to align with international best practice standards, but to overhaul the business’ infrastructure and processes in such a way as to guarantee efficiency and cost competitiveness.”

Dr Mohamed Saleh Darweesh, CFO at Mepco, said: “On quarterly basis, the main reasons for improvements in net profit, gross profit and operating profit are increases in sales value and average selling prices, decreases in finance cost because of reduction in average borrowing levels and average borrowing rates.”

Total comprehensive income for the quarter amounted to SR28.1 million compared to total comprehensive income of SR22.8 million for the previous quarter, increasing by 23 per cent. Total shareholders' equity during the current period amounted to SR750.5 million, compared to SR696.7 million for the same period last year, increasing by 7.7 per cent.

Mepco is a leading vertically-integrated paper manufacturer in the Middle East , offering a diverse range of containerboard and specialty paper products serving the packaging, construction, furniture, and paper core industries around the world. The Company is listed on the Saudi Stock Exchange, Tadawul. – TradeArabia News Service