MEPCO swings to profit in 9M-2025 as quarterly earnings surge 174%

SAUDI ARABIA – Middle East Paper Company (MEPCO) has reported a robust turnaround in its financial performance for the first nine months (9M) of 2025, posting net profits of SAR 24.86 million (US$6.63m) compared to a net loss of SAR 32.82 million (US$8.75m) in the same period of 2024.

According to the company’s financial results, revenues rose by 4.87% to SAR 813.19 million (US$216.82m) as of 30 September 2025, up from SAR 775.42 million (US$206.75m) a year earlier.

Earnings per share (EPS) improved to SAR 0.29, recovering from a loss per share of SAR 0.38 in 9M-24.

The improved performance was attributed to stronger operational efficiencies, stable raw material costs, and enhanced product mix across MEPCO’s packaging paper segment.

Strong Q3 results

In the third quarter (Q3) of 2025, MEPCO achieved net profits of SAR 14.30 million (US$3.81m), reversing net losses of SAR 18.50 million (US$4.93m) in Q3-24.

Revenues edged up by 0.75% year-on-year (YoY) to SAR 278.97 million (US$74.38m), compared to SAR 276.89 million (US$73.83m) in the prior-year period.

Quarter-on-quarter (QoQ), MEPCO’s net profit jumped 173.85% from SAR 5.22 million (US$1.39m)  in Q2-25, with revenues up 1.39% from SAR 275.13 million (US$73.36m).

The Jeddah-based company, one of the largest paperboard and containerboard producers in the Middle East, has been focusing on expanding its recycling capacity and sustainable product portfolio to meet the growing demand for eco-friendly packaging solutions.

MEPCO’s rebound mirrors broader growth across the regional paper and packaging industry.

In August 2025, Abu Dhabi-based Gulf Paper Manufacturing reported a 22% YoY increase in quarterly profits driven by strong tissue and recycled paper sales, while Saudi Paper Manufacturing Company (SPM) also posted double-digit growth on the back of capacity expansion and higher domestic demand.

Globally, paper producers are benefiting from easing input costs and rising demand for sustainable packaging.

Industry analysts note that Saudi Arabia’s packaging paper market is forecast to grow by over 6% annually through 2030, supported by Vision 2030 initiatives promoting recycling and circular economy practices.

With its strong recovery and continued investment in sustainable paper production, MEPCO is positioning itself to capitalize on both regional demand growth and the global shift toward environmentally responsible packaging materials.

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