MEPCO maintains 22% market share in 2025: CEO

MEPCO CEO Faisal Haddawi said improved global supply chain helped stabilize shipping costs

Middle East Paper Co. (MEPCO) CEO Faisal Haddawi said domestic demand remained relatively stable in 2025 despite pricing pressures from increased local capacity and imports, adding the company maintained an estimated 22% market share by year-end.

In an interview with Argaam, Haddawi said improved global supply chain conditions helped stabilize shipping costs, alongside favorable trends in raw material prices, supporting operational efficiency and overall performance.

He added that geopolitical developments were supportive of MEPCO’s business in 2025, with supply chains operating largely uninterrupted, as imports continued to flow through the Suez Canal and arrive regularly at Jeddah Islamic Port.

Haddawi noted the company delivered a significant financial turnaround during the year, shifting from a net loss in 2024 to a net profit in 2025, driven by improved operational efficiency, disciplined cost management, and better utilization of group resources.

He said the sales mix remained balanced, with the domestic market accounting for around 78% of total revenue, compared to 22% from exports, in line with MEPCO’s strategy to strengthen its local presence while maintaining a selective footprint in international markets.

Haddawi further affirmed the company’s commitment to strict cost discipline, with the approach set to continue in 2026 to enhance profitability, operational excellence, and sustainable growth.

He expects a positive performance in Q1 2026, supported by seasonal demand during Ramadan, an improving pricing environment in the domestic market, and continued operational focus on efficiency and productivity.

According to Argaam data, MEPCO reported a net profit of SAR 23.4 million for 2025, compared with a net loss of SAR 77.3 million in 2024, while Q4 losses stood at SAR 1.5 million.