The Middle East Paper Manufacturing and Production Company (MEPCO) achieved a growth in profits by 229.2%, with net profit reaching 20.176 million riyals in 2020, compared to 6.128 million riyals during The same period last year.
According to Arabnet, the company said in a statement that the main reasons for the increase in net profit are the increase in sales revenues as a result of the increase in sales volume, the decrease in the cost of sales per ton, and the decrease in selling expenses Distribution, lower general and administrative expenses, lower fair value loss in derivative financial instruments, lower cost of financing, according to the company.
However, the aforementioned effect was partially offset by lower average selling prices, lower other income and increase in zakat expense.
In a related development, the company's board of directors recommended not to distribute cash dividends to shareholders for the fiscal year 2020 in order to support the company's expansion projects that it is currently establishing.
