Riyadh – Mubasher: Middle East Paper Company (MEPCO) registered a 28.7% decline in net profit during the first quarter (Q1) of 2020, as shown by its interim financial results for the three-month period ended 31 March 2020.
The net profit after zakat and tax amounted to SAR 4.124 million in Q1-20, compared with SAR 5.784 million for the same period in 2019.
The decrease in net profit is mainly due to lower selling prices, an increase in fair value loss on derivative instruments, and a decrease in other income, according to a company disclosure to the Saudi Stock Exchange (Tadawul) on Tuesday.
The impact was partially offset by the increase in sales volume, as well as a decrease in the cost of sales per ton, general and administrative expenses, selling and distribution expenses, allowance for impairment of receivables, and finance costs.
