FIPCO 9M 2024 profit falls 31% to SAR 3.4M; Q3 at SAR 300,000

Filing and Packing Materials Manufacturing Co. (FIPCO) reported a net profit of SAR 3.4 million in the first nine-month period of 2024, dropping 31% from SAR 4.9 million a year earlier.

This was due to lower sales on a decline in sales of the subsidiary (FPC), as well as higher selling and marketing expenses arising from higher labor costs. This is in addition to a rise in the expected credit losses provision in accordance with IFRS 9.

The company also recorded an increase in banking charges because of higher interest rates, despite a decrease in total loans.

However, FIPCO reported a slight increase in gross profit due to an improved product mix and profit margins of the subsidiary FPC despite declined turnover. General and administrative expenses also declined because of settling expenses with the financial advisor related to a rights issue in 9M 2024.

In the third quarter of 2023, net profit slumped 92% to SAR 300,000 from SAR 3.70 million in Q3 2023, mainly due to lower sales and gross profit as well as a rise in selling and marketing expenses.

On a sequential basis, Q3 net profit dropped from SAR 1.10 million.

Total shareholders’ equity, no minority interest, reached SAR 147.1 million as of Sept. 30, 2024, compared to SAR 136.9 million in a year-earlier period.

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