MEPCO Announces 22 per cent net profit growth for third quarter 2017
The Middle East Paper Co. (‘MEPCO’), the region’s leading vertically-integrated paper manufacturer, has announced its financial results for the third quarter of 2017.
Net profit increased from SAR 18.2 million in the second quarter to reach SAR 22.2 million in the third quarter of 2017, representing an improvement of 22 per cent. Gross profit for the third quarter was SAR 55.3 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.
“We’re pleased to announce continued improvements in performance during 2017. 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 tonne and operating expenses, we are pleased with our growth this year,” Eng. Sami Safran, CEO of MEPCO, said.
Operational profit in the third quarter of 2017 was SAR 27.7 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 SAR 0.87 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 SAR 92 million in 2016, resulting from the expropriation of land and premises.
“Sales revenues for the third quarter reached SAR 212.7 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 SAR 186.7 million. On a year-to-date basis, our sales revenues have exceeded SAR 566 million, compared to SAR 489.5 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,” Dr. Mohamed Saleh Darweesh, CFO of MEPCO, said.
MEPCO’s total shareholders' equity during the current period amounts to SAR 699.6 million. The Company has adopted International Financial Reporting Standards (IFRS), effective from 1 January 2017.