FIPCO turns to SAR 1.3 mln profit in H1 2022; Q2 at SAR 900,000

Filing and Packing Materials Manufacturing Co. (FIPCO) turned to a net profit after Zakat and tax of SAR 1.3 million for the first half of 2022, against a net loss after Zakat and tax of SAR 6.7 million a year earlier.

The profit growth was triggered by higher gross profit due to increased turnover as well as improved profit margin. The company also cited expected credit losses provision that was decreased, in accordance with IFRS 9, in addition to higher other revenues because of obtaining financial support from “ESTERDAD” initiative issued by the Small and Medium Enterprises General Authority (Monsha'at).

FIPCO also noted impairment of capital assets for low economic viability that took place in the first quarter of 2021.

This was despite higher selling and marketing expenses, as well as increased banking charges.

In the second quarter of 2022, the company posted a net profit of SAR 900,000, against a net loss of SAR 5.2 million a year earlier, driven by higher gross profit, low credit losses provisions and high other revenue.

On a sequential basis, Q2 2022 net earnings increased from SAR 400,000.

Total shareholders’ equity, after minority interest, reached SAR 121.3 million as of June 30, 2022, down 0.57% from SAR 122 million a year earlier.

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