RIYADH: Middle East Paper Company (MEPCO) has announced a net profit of SAR 99.44 million for the year ended December 31, 2018, which is 45.95% higher than the profit of SAR 68.13 million in the previous year.

The earnings per share (EPS) for 2018 clocked in at SAR 2.0 compared with the EPS of SAR 1.36 in 2017. Middle East Paper Company (MEPCO) also declared a cash dividend of SAR 0.50/share along with the corporate results, a notice sent to Tadawul said.[the_ad id=”32940″]The main reason for the increase in net profit is the increase in sales revenue due to increase in average selling prices. However impact of above is partially offset by the increase in cost of sales per ton, general and administrative expenses, selling and distribution expenses, impairment loss on financial assets, other operating expenses and zakat expenses.

The company achieved  its highest  ever  annual  consolidated sales  revenue of  SAR 833.6million,  an 8.1% increase from 2017.

Eng Sami Al Safran, CEO Middle East Paper Company (MEPCO),commented: “2018 was a  record  year with solid  operational  and  financial performance –including  our  highest  ever consolidated  sales  revenue. We  saw  2018 global demand  for  containerboard  and  paperboard  increase across  sectors–from  packaging  to  consumer  goods  to  construction  materials.

“As a business-to-business manufacturer, we have worked to nurture relationships with our customers as we streamline our supply chain and operations. These annual results show we’re well positioned to leverage market dynamics, driven by trends such as e-commerce, and to diversify our non-conventional product mix. Our 2018 achievements are testament to the business’ focus on quality, sustainability and flexibility–and our ongoing commitment to delivering shareholder value”.