FIPCO deepens 9M 2021 net loss to SAR 10.2 mln

Filling and Packing Materials Manufacturing Co. (FIPCO) slid to a deeper net loss after Zakat and tax of SAR 10.2 million for the first nine months of 2021, from SAR 2.1 million in the year-earlier period.

The loss was incurred due to an decrease in gross profit amid a rise in the main raw materials prices. The company also reported higher selling and distribution expenses and Zakat provision, along with increased expected credit loss provision for FPC Industrial Co. according to IFRS 9.

In Q3 2021, the company widened its net loss after Zakat and tax saw by 17% to SAR 3.4 million from SAR 2.9 million a year earlier, on a decline in other income, higher selling and distribution expenses and increased banking charges from the termination of some government initiatives to minimize the COVID-19 impact.

When compared to the previous quarter, Q3 net losses narrowed by 34.6% from SAR 5.2 million, thanks to higher gross profit.

Shareholders’ equity, after minority interest, fell 14.8% to SAR 118.5 million as of Sept. 30, 2021, from SAR 139.1 million a year earlier.

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