MEPCO posts profit of SAR 10.5M in H1 2025, SAR 5.2M in Q2

The Saudi-listed roll paper producer reported significant improvement in its operating performance, along with government support to alleviate the impact of higher fuel prices.

MEPCO posted an operating income of SAR 25 million in H1 2025. In addition, the reversal of a SAR 2.5 million provision for expected credit losses contributed to this uptrend, reflecting positively on the company’s accounts receivable.

Moreover, revenues increased by nearly 7% year-on-year (YoY) to SAR 534 million in the six-month period, thanks to better sales volumes, operating efficiency and productivity.

In Q2 2025, net earnings grew by 29% SAR 5.2 million, from SAR 4 million in the prior-year period, primarily due to the sound cost management and the government support to reduce the increase in fuel price impact. The second-quarter topline also soared 8% YoY to SAR 275 million amid strong market demand and better average selling prices.

During the same quarter, general and administrative (G&A) expenses slumped YoY, paired with a notable uplift in other income. Although the gross profit margin contracted compared to the same quarter of the previous year, MEPCO delivered stronger bottom-line performance.

Conversely, the three-month net earnings declined by 2% from SAR 5.33 million in Q1 2025 on a relative increase in G&A.

Total shareholders’ equity, after minority interest, tumbled to SAR 1.61 billion as of June 30, 2025, from SAR 1.66 billion a year earlier.

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