FIPCO incurs SAR 22.3 mln loss in FY2019

Filling & Packing Materials Manufacturing Co. (FIPCO) widened its net loss after Zakat and tax threefold to reach SAR 22.3 million for fiscal year 2019, compared to SAR 5.9 million a year earlier.

The company attributed the losses to lower gross profit due to increased production expenses as a result of higher labor governmental fees; higher selling and marketing expenses arising from FIPCO’s share in its subsidiary FPC industries Co.; and higher general and administrative expenses (G&As) as the company incurred operating expenses amounting to SAR 15.9 million from FPC.

FIPCO also cited increase in finance charges to SAR 4.3 million due to the capitalization of its subsidiary’s financing costs in 2018 in line with IFRS.

This was partially offset by higher other income arising from the reversal of impairment provision for sold capital assets, in addition to lower provisions for losses on account receivables in line with the adoption of IFRS 9.

In Q4 2019, the company also widened its net loss by 52.9% to SAR 12.98 million.