2180 · 25/04/2021 16:32:14 · Announcement #63002 · View on Saudi Exchange

Filling & Packing Materials MFG. Co. (FIPCO) announces the Consolidated Interim Financial results for the period ended Mar. 31, 2021 (Three Months)

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 48.548.30.41446.54.301
Gross Profit (Loss) 8.210-188.6-4.651
Operational Profit (Loss) -0.75.8-1-
Net Profit (Loss) after Zakat and Tax -1.54.2--0.966.666
Total Comprehensive Income -1.54.2--1.47.142
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Total Share Holders Equity (after Deducting Minority Equity) 127.2145.4-12.517
Profit (Loss) per Share -0.130.36
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The reason for net loss for the first quarter of 2021 compared to the net profits achieved in the corresponding quarter of the previous year 2020 lies mainly behind the following:

1- Declined gross profit resulted from the sudden and ascending increase in the main raw materials prices, increased by 41% during the first quarter of 2021 despite of growth in FPC turnover.

2- General and administrative expenses are higher, as a result of bonus provisions and hiring new jobs for some departments.

3- Credit losses provision has been considered for FPC in accordance with IFRS 9, as a result for increased sales and the credit relationships with some strategic clients. In addition to reversing the same provision in FIPCO during the first quarter of 2020, due to the absence of its purpose, as main due amounts were collected and the credit relationships was redesigned with some clients.

4- Decrease in other income arising from impairment of capital assets for low economic viability and replacing with new highly efficient assets, which will positively affect production capacity.

5- Increase in Zakat provision based on a forecast of the short term loans will be included in Zakat calculation in case of continuous governmental initiatives, particularly the initiative of deferred payment program related to postpone the due payment with no interest up to the end of 2021.

These results achieved in spite of:

- Decrease in banking charges as a result of the governmental initiatives (represented by SAMA) in order to minimize the impact of the coronavirus outbreak (Covid-19), particularly the initiative of deferred payment program related to postpone the due payment with no interest.

- Realized gains of investments at fair value through profit or loss.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The net loss for this quarter is higher compared to the fourth quarter of 2020, due to:

1- Declined gross profit resulted from the sudden and ascending increase in the main raw materials prices, increased by 41% during the first quarter of 2021 despite of growth in FPC turnover.

2- Sales and distribution expenses are higher based on increased shipping costs.

3- Credit losses provision has been considered for FPC in accordance with IFRS 9, as a result for increased sales and the credit relationships with some strategic clients.

4- Decrease in other income arising from impairment of capital assets for low economic viability and replacing with new highly efficient assets, which will positively affect production capacity as well as obtaining some benefits from Small & Medium Enterprises General Authority (SMEA).

However increase in realized and unrealized gains of investments at fair value through profit or loss.Statement of the type of external auditor's report Unmodified conclusionReclassification of Comparison Items Certain Comparative figures have been reclassified to be consistent with the presentation of the current period presentation.Additional Information - The main reason lies behind decrease in total shareholders’ equity (after deducting minority equity), re-evaluating the difference in the acquisition of the Non - Controlling interest announced on Tadawul website on March 2, 2020, which led to potential liability amounted to SR 20 million based on the study of potential liability evaluation prepared by end of fiscal year 2020.

- The balance of non-controlling interest has been adjusted as of the P&L of FPC by end of fiscal year 2019, after reclassification of financing gains in FPC to cope up with the IFRS, which reflected on The total shareholders’ equity, as clarified in details in the disclosure No. 32 of the consolidated financial statement for the fiscal year 2020.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.