FIPCO posts SAR 3.1M profit in H1 2024, SAR 1.1M in Q2

Filing and Packing Materials Manufacturing Co. (FIPCO) reported an over twofold increase in H1 2024 net profit to SAR 3.1 million, from SAR 1.2 million a year earlier.

The H1 profit was buoyed by an increase in gross profit, due to an improved sales mix and profit margins in the subsidiary.

FIPCO also reported a decrease in general and administrative expenses (G&A) as a result of settling offering expenses with the financial advisor regarding the company's rights issue during the first half of 2023, despite the rise in research and development expenses. In addition, the company recorded an increase in other income, along with lower Zakat provisions.

On the other hand, selling and marketing expenses rose on higher employment costs and shipping charges amid the current geopolitical conditions.

In Q2 2024, FIPCO’s bottom line skyrocketed to SAR 1.1 million, from SAR 60,000 in Q2 2023, thanks to a rise in the parent company’s sales volumes and average selling prices due to the sale mix changes.

Gross profits also saw growth on higher sales volumes.

Moreover, net earnings skyrocketed to SAR 2.2 billion from SAR 246.2 million in Q1 2024.

Shareholders’ equity, no minority interest, stood at SAR 146.8 million as of June 30, 2024, compared to SAR 133.3 billion a year earlier.

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