Filling & Packing Materials MFG. Co. (FIPCO) announces the Consolidated Interim Financial results for the period ended Sep. 30, 2021 (Nine Months)
| ELEMENT LIST | CURRENT QUARTER | SIMILAR QUARTER FOR PREVIOUS YEAR | %CHANGE | PREVIOUS QUARTER | % CHANGE |
|---|---|---|---|---|---|
| Sales/Revenue | 54.9 | 41.5 | 32.289 | 58.8 | -6.632 |
| Gross Profit (Loss) | 5.9 | 5.5 | 7.272 | 5.6 | 5.357 |
| Operational Profit (Loss) | -1.5 | -1.3 | 15.384 | -3.3 | -54.545 |
| Net Profit (Loss) after Zakat and Tax | -3.4 | -2.9 | 17.241 | -5.2 | -34.615 |
| Total Comprehensive Income | -3.4 | -2.9 | 17.241 | -5.2 | -34.615 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| ELEMENT LIST | CURRENT PERIOD | SIMILAR PERIOD FOR PREVIOUS YEAR | %CHANGE |
|---|---|---|---|
| Sales/Revenue | 162.3 | 135 | 20.222 |
| Gross Profit (Loss) | 19.7 | 20.7 | -4.83 |
| Operational Profit (Loss) | -5.5 | 2.8 | – |
| Net Profit (Loss) after Zakat and Tax | -10.2 | -2.1 | 385.714 |
| Total Comprehensive Income | -10.2 | -2.1 | 385.714 |
| Total Share Holders Equity (after Deducting Minority Equity) | 118.5 | 139.1 | -14.809 |
| Profit (Loss) per Share | -0.89 | -0.18 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| ELEMENT LIST | EXPLANATION |
|---|---|
| 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 reasons lie behind increased net loss for this quarter compared to net loss for the corresponding quarter of 2020 is mainly due to: 1- Selling and distribution expenses are higher because of increased export sales and increased shipping price globally as well as the expansion of opening retail stores in several regions for the subsidiary (FPC) inside and outside Saudi Arabia. 2- Decrease in other income resulted from decreased governmental support received from HRDF and MONSHA’AT, during the 3rd quarter of 2020. 3- increase in banking charges resulted from terminating some of governmental initiatives 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.
These results achieved in spite of:
1- Increase in gross profit resulted from higher sales volume in FIPCO & FPC, however the profit margin is going lower as a result of ascending increase in the main raw materials prices, in addition to the increase in production costs due to increase in the minimum wage for Saudi employees. 2- General and administrative expenses are lower, as a result of increased production capacity in FPC, in addition that there was no need to make provisions, which has been previously made during the 3rd quarter of 2020. |
| 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 achieved for this quarter is lower compared to net loss for Q2 of 2021 is mainly due to:
1- Increase in gross profit resulted from improved profit margin in FIPCO. 2- Expected credit losses provision was sufficient in accordance with IFRS 9
However the Selling and distribution expenses were higher because of increased shipping prices globally. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The reasons lie behind increased net loss for this period compared to net loss for the corresponding period of 2020 is mainly due to: 1- Decrease in gross profit resulted from ascending increase in the main raw material prices, in addition to the increase in production costs due to increase in the minimum wage for Saudi employees, in spite of growing turnover for both FIPCO & FPC. 2- Selling and distribution expenses are higher because of increased export sales and increased shipping prices globally as well as the expansion of opening retail stores in several regions for the subsidiary (FPC) inside and outside Saudi Arabia. 3- Expected credit losses provision has been increased for FPC in accordance with IFRS 9, in addition to Reversing of the credit losses provision in FIPCO due to the absence of its purpose during the nine months of 2020, 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 visibility and replacing with new highly efficient assets, which will positively affect production capacity during the nine months of 2021, as well as some of governmental support of HRDF and MONSHA’AT has been received during the nine months of 2020. 5- Increase in Zakat provision.
These results achieved in spite of:
1- General and administrative expenses are lower, as a result of increased production capacity in FPC. 2- Realized gains of investments at fair value through profit or loss. |
| Statement of the type of external auditor’s report | Unmodified conclusion |
| Reclassification 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 amounted to SR 25 million which led to potential liability based on the study of potential liability evaluation prepared by end of fiscal year 2020. As a result of acquisition agreement announced on Tadawul website on March 2, 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. |