2180 · 13/05/2024 08:02:31 · Announcement #79986 · View on Saudi Exchange

Filling & Packing Materials MFG. Co. (FIPCO) announces the Consolidated Interim Financial results for the period ended Mar. 31, 2024 (Three Months)

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 51.363.9-19.71867.1-23.546
Gross Profit (Loss) 1211.18.10814.6-17.808
Operational Profit (Loss) 3.23.4-5.8824.3-25.581
Net profit (Loss) 21.533.3337.1-71.83
Total Comprehensive Income 21.533.3336.8-70.588
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Total Share Holders Equity (After Deducting the Minority Equity) 145.7133.69.056
Profit (Loss) per Share 0.180.13
All figures are in (Millions) Saudi Arabia, Riyals
Element ListPercentage of the capital (%)Amount
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value --
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is The reason for declined turnover is due to a decrease in selling prices as a result of decreased prices of key raw materials, in addition to a decrease in the sales volume of some main products.
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 net profit for the first quarter of 2024 is higher compared to the net profits achieved in the corresponding quarter of the previous year 2023 due mainly from the following:

1- Increase in gross profit in spite of decreased turnover due from product mix variance and improved profit margins.

2- Increase in other income.

3- Decrease in Zakat provision.

These results achieved despite of the following:

1- Increase in S&D expenses arising from higher labor costs and increased freight prices because of the current geo-political developments.

2- Increase in G&A expenses arising from higher labor costs and increased R&D expenses.

3- Increase in banking charges because of higher interest rates.The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The reason for declined turnover is due to a decrease in selling prices as a result of decreased prices of key raw materials, in addition to a decrease in the sales volume of some main products.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The reason for lower net profit for the first quarter of 2024 compared to the last quarter of 2023 lies mainly behind the following:

1- Decrease in gross profit because of decreased turnover, product mix variance and profit margins.

2- Increase in expected credit losses provision.

3- Decrease in other income resulted from re-classification of the governmental support coming from HRDF in the cost of goods sold in accordance with the IFRS and the VAT refund during the 4th quarter of 2023.

4- Re-evaluating the contingent liability against non-controlling interest acquisition during the 4th quarter of 2023.

5- Increase in zakat provision.

These results achieved in spite of:

1- Decrease in G&A expenses resulted from provisions allocation during the 4th quarter of 2023.

2- Decrease in banking charges because of reclassification of some loans as a government grant in accordance with IFRS 20.Statement of the type of external auditor's report Unmodified conclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) N/AReclassification of Comparison Items Certain Comparative figures have been reclassified to be consistent with the presentation of the current period presentation.Additional Information - Some changes have been introduced in the presentation method for some items, as the governmental support has been reclassified in the cost of goods sold in accordance with the IFRS, while the other income has been considered in the non-operating profits, which affected the previously announced numbers regarding gross profit and operating income during the 1st quarter of 2023.

- The reason for the change in total comprehensive income during the current quarter compared to the previous quarter is due to losses on remeasurement of employees’ end-of-service benefits, which were generated at the end of the 4th quarter of 2023.

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