Middle East Paper Co. announces its Interim Financial results for the Period Ending on 2024-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 243,452.946 | 223,948.896 | 8.709 | 224,255.539 | 8.56 |
| Gross Profit (Loss) | 32,508.16 | 35,294.4 | -7.894 | 2,941.97 | 1,004.979 |
| Operational Profit (Loss) | -11,235.46 | 2,294.1 | - | -29,140.68 | -61.444 |
| Net profit (Loss) | -18,714 | -7,100 | 163.577 | -37,485 | -50.076 |
| Total Comprehensive Income | -18,714 | -7,100 | 163.577 | -37,017 | -49.444 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (After Deducting the Minority Equity) | 1,666,040 | 1,174,638 | 41.834 |
| Profit (Loss) per Share | -0.21 | -0.1 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Percentage of the capital (%) | Amount | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Sales volume experienced a significant increase of 14 KMT this quarter, primarily due to the successful launch of our Juthor facility in Q2 2023.
Sales prices show a slight decrease (3%) compared to Q1 2023, reflecting a market correction from the post-COVID boom. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | "- MEPCO experienced a net loss increase of SR 12 Mn compared to the same period last year. This is primarily attributed to:
1- Reduced Gross Profit (SR 2.8 Mn) - Lower sales prices and increased cost of sales, mainly driven by Juthor operations, reduced the gross profit margin (from 16% to 13%).
2- Increased G&A Expenses (SR 9 Mn) - Out of which SR 8Mn are due to Employee Costs. Breakdown as follows:
- SR 2 million from Juthor operations - SR 3 million increase in employee benefits - SR 3.5 million reclassification of production, selling, and distribution expenses
3- Increased Finance & Zakat Expenses (SR 5 Mn) - Increased borrowings and higher SAIBOR rates led to higher interest expenses. Zakat increased despite losses due to zakat on new share capital.
These increases were partially offset by:
- SR 1 Mn savings in selling and distribution - SR 2 Mn reduction in impairment loss - SR 7 Mn finance income on bank deposits" |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | "- Sales increased by SR 19 Mn compared to the previous quarter, driven by an 8% increase in sales volume and an overall improvement in selling prices across tissue and containerboard products
- We have witnessed an overall price increase across MEPCO tissue and containerboard product. Prices in the tissue sector recovered better than the container board sector - Prices demonstrate an upward trend since Q3 2023, indicating a positive demand trend, along with growth in sales volume primarily attributed to increased sales in the waste management sector." |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | "Net loss decreased substantially by SR 19 Mn (50%) compared to the previous quarter, driven by market recovery and improved pricing.
-Gross profit increased by SAR 30 million, with the gross profit margin rising notably from 1% to 13% due to increased sales and lower cost of sales per metric ton (MT) -This improvement is driven by reduced utilities costs and lower raw material prices, particularly fiber costs.
Other Impacts:
- Selling & distribution costs decreased by SR 2 Mn due to lower shipping costs. - G&A expenses increased by SR 10 Mn, primarily due to a reversal of a penalty provision in the previous quarter. Excluding this effect, G&A expenses remained consistent with Q4 2023. - Impairment of financial assets was SAR 0.7 million, compared to a SAR 6 million reversal in the previous quarter, due to year-end adjustments. - Finance costs increased by SR 2.5 Mn due to additional working capital and long-term loans. - Zakat increased by SR 4 Mn, reflecting new share capital and reduced losses. " |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | N/A |
| Reclassification of Comparison Items | N/A |
| Additional Information | For more information. Kindly find the attached file.(Earning release) |
| Attached Documents |  |
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