Stocks Market
Med Paper Posts Q2 2026 Revenue Decline, Slashes Debt by MAD 8.8 Million
Med Paper faced a challenging second quarter in 2026, with revenue falling to MAD 21.78 million from MAD 23.42 million a year earlier. Despite the contraction, the company strengthened its balance sheet by reducing debt by MAD 8.8 million, signaling disciplined financial management amid a difficult operating environment.
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Revenue Under Pressure in Q2 2026
Med Paper continues to navigate a challenging market landscape while reinforcing its position in the Moroccan paper industry. In the second quarter of 2026, the company generated revenue of MAD 21.781 million, compared to MAD 23.419 million in the same period of 2025, representing a decline of MAD 1.638 million.
Six-Month Performance Shows Wider Gap
For the first half of 2026, cumulative revenue reached MAD 39.015 million, down from MAD 42.420 million in H1 2025. The half-year shortfall of MAD 3.405 million underscores the sustained headwinds facing the company's top line.
Zero Capital Expenditure
Notably, Med Paper recorded no investments during the second quarter of 2026, a pattern consistent with the same period in 2025. This absence of capex across both years highlights a cautious approach to capital allocation amid uncertain market conditions.
Debt Reduction: A Positive Signal
On a more encouraging note, the company's debt position improved markedly. Total debt stood at MAD 105.323 million in Q2 2026, compared to MAD 114.125 million a year earlier—a reduction of MAD 8.802 million. This deleveraging effort reflects management's commitment to strengthening the balance sheet.
Strategic Outlook
Despite the tough environment, Med Paper remains confident in its strategic direction and its positioning in the Moroccan market. The company is particularly optimistic about opportunities arising from the implementation of the national preference law, which could provide a tailwind for domestic manufacturers.