MEPCO Holds 22% Market Share in 2025 as CEO Cites Demand Stability and Cost Discipline

Middle East Paper Co. maintained an estimated 22% market share in 2025, as stable domestic demand and improved supply chain conditions supported performance, according to CEO Faisal Haddawi.

In an interview with Argaam, Haddawi said domestic demand remained relatively steady despite pricing pressures from increased local production capacity and imports. He noted that improved global supply chain conditions helped stabilize shipping costs, while favorable raw material price trends contributed to operational efficiency.

Geopolitical developments also supported the company’s operations during the year, with supply chains functioning without major disruptions. Imports continued to move through the Suez Canal and arrive consistently at Jeddah Islamic Port, ensuring reliable material flows.

MEPCO reported a financial turnaround in 2025, shifting from a net loss in 2024 to a net profit of SAR 23.4 million, according to Argaam data. The improvement was attributed to enhanced operational efficiency, disciplined cost management, and better utilization of group resources. In 2024, the company recorded a net loss of SAR 77.3 million, while fourth-quarter 2025 losses stood at SAR 1.5 million.

The company’s sales mix remained broadly unchanged, with the domestic market accounting for approximately 78% of total revenue and exports contributing 22%, reflecting MEPCO’s focus on strengthening its local position while maintaining a selective international presence.

Looking ahead, Haddawi said the company will continue to prioritize cost discipline in 2026 to support profitability and operational performance. He added that first-quarter 2026 performance is expected to benefit from seasonal demand during Ramadan, improving domestic pricing conditions, and ongoing efficiency measures.