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![video link button](/Content/en/images/attachement-icon.jpg)
Abdullah Al-Harbi, CEO of Filing and Packing Materials Manufacturing Co.
Filing and Packing Materials Manufacturing Co. is forecast to witness growth in sales compared to the first quarter, backed by growth in sales of technical textiles through FBC Industries Co., said CEO Abdullah Al-Harbi.
FIPCO saw a decline in the prices of raw materials starting from Q1 2024 by nearly 12% in its main production input, which is polypropylene, which led to lower selling prices. This in turn led to a decrease in total sales due to the company's commitment with major clients with variable pricing contracts that are closely linked to raw material prices, the top executive told Argaam.
He added that the increase in Q1 profit came thanks to higher profit margins and improved sales mixture despite the decline in sales year-on-year as a result of lower raw material prices.
The CEO also stated that the improvement in Q1 net profit was driven by the focus on products with the highest profitability, despite the increase in shipping expenses in due to the geopolitical conditions in the region during the three-month period, in addition to the improvement in collection levels that led to a drop in credit loss provisions.
Al-Harbi pointed out that Q1 sales exceeded SAR 51 million, of which sales of packaging products and technical textiles represented 70%, and 30%, respectively.
The company recorded the highest export rate in this quarter, with exports-to-sales ratio reaching 53% for several countries in Asia, Europe and Africa, he added.
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