Riyadh – Mubasher: Middle East Paper Company (MEPCO) incurred SAR 1.99 million worth of net losses to the owners during the first quarter (Q1) of 2026.
The results marked a shift from net profits amounting to SAR 5.33 million in Q1-25, according to the income statements.
MEPCO posted a loss per share of SAR 0.02 in Q1-26, against earnings per share (EPS) worth SAR 0.06 in Q1-25.
Meanwhile, the company’s revenue decreased by 6% year-on-year (YoY) to SAR 244.29 million in January-March 2026 from SAR 259.09 million in the same quarter a year ago.
The company said it continued to demonstrate disciplined cost management, achieving notable reductions in selling and distribution expenses and general and administrative costs. In tandem, MEPCO maintained progress on its strategic investment objectives, supporting future capacity expansion and reinforcing its long-term growth outlook.
The total assets of the company grew by 3% to SAR 2.75 billion as of 31 March 2026 when compared to SAR 2.66 billion at the end of December 2025.
Chairman of MEPCO, Musab Sulaiman Al Muhaidib, said: “Since MEPCO’s establishment over two decades ago, the company has steadily evolved to become a key contributor to the Kingdom’s industrial and environmental landscape, building a strong legacy in paper production and recycling.”
Al Muhaidib elaborated: “At the heart of our journey lies a firm commitment to the principles of the circular economy; transforming waste into valuable resources and supporting sustainable industrial development, closely aligned with Saudi Arabia’s Vision 2030, which emphasizes environmental responsibility, resource efficiency, and economic diversification. During the period, the Company continued to operate within a dynamic market environment shaped by shifting demand patterns and input cost pressures.”
The Chairman continued: “While financial performance reflected these challenges, our strategic direction remains firmly focused on long-term, sustainable growth. We continue to invest in expanding our production capabilities and enhancing operational resilience, as evidenced by our ongoing capital projects, which are expected to strengthen our market position and support future capacity, and in turn, profitability.”
On a quarterly basis, the net losses of MEPCO in Q1-26 deepened by 36.95% from SAR 1.45 billion in Q4-25, while the revenue decreased by 1.22% from SAR 247.33 million.
For his part, Faisal Haddawi, the CEO of MEPCO, said: “The Q1-26 was marked by a challenging operating environment, characterized by pricing pressure across selected segments and the impact of non-recurring items, both of which weighed on overall profitability.”
Haddawi noted: “Our priority to navigate short-term market challenges while ensuring sustainable value creation for our shareholders remains clear. This includes optimizing our cost base, improving asset utilization, and strengthening our market position across core segments. As we move forward, we are confident that the actions we are taking today, combined with our investments in future capacity, will position the Company to capitalize on emerging opportunities.”
In 2025, the Saudi listed MEPCO turned profitable at SAR 23.41 million, while its revenue hit SAR 1.06 billion.
