| lement List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 260.7 | 222.6 | 17.11 | ||
| Gross Profit (Loss) | 42.2 | 29 | 45.52 | ||
| Operational Profit (Loss) | 10.8 | -5 | – | ||
| Net Profit (Loss) after Zakat and Tax | 9.8 | -9.1 | – | ||
| Total Comprehensive Income | 11.9 | -8.6 | – | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 132 | 120.1 | 9.91 | ||
| Profit (Loss) per Share | 0.85 | -0.79 | |||
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | FIPCO has achieved net profit of SR 9.8 million for the fiscal year 2022 compared to the net losses of SR 9.1 million in the previous year 2021, the reasons lie mainly behind the following:
1- Increase in gross profit due from increased turnover and improved profit margins despite increasing indirect costs resulted from increased minimum wages. 2- Expected credit losses provision has been decreased in accordance with IFRS 9, as a result of reflection of collection efforts and reconsidering the credit relationship for some clients. 3- Re-evaluating the contingent liability against non-controlling interest acquisition. 4- Increase in realized and un-realized gains of investments at fair value through profit or loss. 5- Increase in other revenues because of obtaining the governmental financial support during the period as well as impairment of capital assets for low economic viability that took place in the corresponding period of 2021. 6- Decrease in zakat provision.
These results achieved in spite of:
1- Selling and Marketing expenses are higher because of increased freight prices, in addition to expanding FPC participations in international exhibitions with the purpose of increasing its market share in global markets and achieving its export goals. 2- Increase in G&A expenses. 3- Increase in banking charges because of absence of governmental initiatives 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, In addition to higher interest rates, however FIPCO has settled some of non-mature short term loans with variable interest rates during 2022. |
| Statement of the type of external auditor’s report | Unmodified opinion |
| Reclassification of Comparison Items | Certain Comparative figures have been reclassified to be consistent with the presentation of the current period presentation. |
| Additional Information | It’s worth to mention that FIPCO has got the CMA approval for the capital increment by offering right issue, and the regulatory requirements are in progress to invite for extra ordinary general assembly meeting (EGM).
FIPCO will utilize the capital increase to mainly target the following:
– Upgrading and digitalizing the production lines to enhance efficiency, achieve higher quality standards and reduce dependence on manpower. – Reducing borrowing, minimizing the banking charges in light of higher interest rates worldwide and improving the financial solvency to meet the company’s expansion activities. |