Riyadh – Mubasher: Middle East Paper Company’s (MEPCO) net profits slumped by 55.4% on a year-on-year (YoY) basis in the third quarter (Q3) of 2020, reaching SAR 383 million from SAR 858 million in the last-year quarter.
The lower earnings are ascribed to the decrease in sales volume and selling prices, coupled with the increase in the cost of sales per ton, according to a bourse filing on Wednesday.
However, this was partially offset by the drop in general and administrative expenses, selling and distribution expenses, allowance for impairment of trade receivables, financing costs, and Zakat expenses, as well as the rise in fair value gain on derivative instruments and other income.
Revenues decreased by 7.3% YoY in the three-month period ended 30 September to SAR 167.5 million.
In the first nine months of the year, the profits reached SAR 15.947 million, a YoY jump of 510.3%.
