MEPCO says Q1 2021 profit boosted by continued rise in prices

Sami Al Safran, chief executive officer at MEPCO

Middle East Paper Co.'s (MEPCO) profit in the first quarter of 2021 was driven by the continued increase in prices since the fourth quarter of 2020, said CEO Sami Al Safran.

In a statement on Q1 2021 financial results, Al Safran noted that profit margins are in an excellent range.

Demand for paperboard grew in the past two quarters, which led to an increase in the prices of raw materials, but this did not constitute a source of concern for the company.

Al Safran further said the company depends on Waste Collection and Recycling Co.'s (WASCO) ability to provide the required quantities of recovered paper to meet production needs.

The Tadawul-listed firm is focusing on waste management initiatives during the current year, as well as the integration of environmental, social and governance pillars into its operations.

MEPCO posted a net profit after Zakat and tax of SAR 17.7 million for Q1 2021, compared with SAR 4.1 million a year earlier, according to data compiled by Argaam.