Mepco increases non-traditional high margin products in 2018: CFO

Middle East Paper Co.’s (Mepco) nine-product output includes seven non-traditional products - with higher prices and margins - that were increased by 16 percent year-on-year (YoY) in 2018, which supported revenues, CFO Mohamed Darweesh told CNBC Arabia.

Production rose 5 percent YoY in 2018 due to the continuous improvement in production operations, as the firm posted its highest revenues since inception, he said.

Mepco’s debt declined by SAR 89 million to SAR 617 million in 2018 from SAR 706 million a year earlier, he said.

The company worked on increasing its medium-term loans instead of the short-term ones in order to improve liquidity, which has seen growth, Darweesh added.

According to data compiled by Argaam, Mepco net profit jumped by 46 percent YoY to SAR 99.4 million in 2018 versus SAR68.1 million a year earlier.

The firm’s board of directors decided to pay a 5 percent cash dividend for the second half of 2018 (SAR 0.50 per share).