MEPCO shows better-than-expected performance in 9M 2020, says CEO

Middle East Paper Co. (MEPCO) demonstrated better-than-expected performance despite challenges in the first nine months of 2020, CEO Sami Safran said in a statement to Argaam.

MEPCO’s financial results in the nine-month period were hit by unprecedented levels of uncertainty, swift changes in consumer patterns, different product prices and logistic challenges.

The burst of demand seen between March and May also led to an increase in companies’ inventories, Safran explained, adding that with the economic reopening, supply and demand have started to normalize, though demand remains weak. 

Moreover, the CEO expected an increase in prices, as global prices are on the rise. The price uptick will partially appear in Q4 2020 and Q1 2021. 

MEPCO is focusing on local sales and on meeting the full demand of its major foreign clients on time, Safran pointed out, adding that this strategic shift contributed to reducing shipping costs by SAR 4 million, when compared to last year.

The company’s sales exceeded 10% on a year-on-year basis, he concluded.

The paper manufacturer posted a rise in its net profit to SAR 16 million in the nine-month period, compared to a net profit of SAR 2.6 million a year earlier, Argaam reported.