Moroccan paper manufacturer Med Paper has reported a drop in revenue for the first three months of 2026, as the sector faces rising competition and cost pressures.
The company said its turnover reached 17.2 million dirhams, down 9.3% from 19 million dirhams a year earlier.
In a quarterly update, Med Paper said it invested 203,000 dirhams by the end of March to support the development of its industrial operations.
Its debt levels improved over the same period, falling from 114.6 million dirhams to 109.3 million dirhams, a reduction of 5.2 million dirhams.
“Despite a difficult context, Med Paper continues to roll out its strategy and strengthen its position in the Moroccan market,” the group said.
It added that it remained confident about opportunities in the domestic market, particularly with the implementation of the law on national preference.
The decline in revenue comes as Morocco’s paper and cardboard industry faces growing pressure from cheaper imports, especially from Europe and Turkey.
Producers are also dealing with fluctuating global prices for raw materials such as pulp and energy, which continue to weigh on margins.
Med Paper is seeking to offset weaker private-sector demand by targeting public contracts. Under Morocco’s national preference rules, local companies can benefit from a price advantage of up to 15% in public tenders compared with foreign competitors.
The firm’s latest figures also point to a cautious financial strategy. Lower investment spending and reduced debt suggest a focus on preserving cash and improving efficiency in an uncertain market.
Listed on the Casablanca Stock Exchange, Med Paper’s shares have shown some volatility in recent weeks, although they remain up over the past year.
The company, formerly known as Papelera de Tetouan, is majority-owned by businessman Mohsin Sefrioui and his family.
While the domestic market remains its priority, Med Paper continues to rely on exports to countries including Egypt, Mali and parts of southern Europe to manage excess production capacity.
The group can produce up to 70,000 tonnes of paper a year, supplying printing, school and packaging markets. However, profitability remains under pressure, with recent reports indicating that operating earnings are still in negative territory.
