Filing and Packing Materials Manufacturing Co. (FIPCO) announces its annual consolidated financial results for the fiscal year ending 31 Dec. 2021.
|ELEMENT LIST||CURRENT YEAR||PREVIOUS YEAR||%CHANGE|
|Gross Profit (Loss)||29||29.3||-1.023|
|Operational Profit (Loss)||-5||3.8||–|
|Net Profit (Loss) after Zakat and Tax||-9.1||-3||203.333|
|Total Comprehensive Income||-8.6||-3.5||145.714|
|Total Share Holders Equity (after Deducting Minority Equity)||120.1||128.7||-6.682|
|Profit (Loss) per Share||-0.79||-0.26|
|All figures are in (Millions) Saudi Arabia, Riyals|
|The reason of the increase (decrease) in the net profit during the current year compared to the last year is||The reasons lie behind increased net loss for 2021 compared to net loss achieved in 2020 are mainly due to:|
1- The gross profit is slightly decreased based on higher prices of the main raw materials, in addition to the increase in production costs resulted from 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 for the subsidiary (FPC).
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 fiscal year 2020, as main due amounts were collected, and the credit relationships was redesigned with some clients.
4- Decrease in other income arising mainly from impairment of capital assets for low economic visibility and replacing with new highly efficient assets, which will positively affect production capacity during the fiscal year 2021, as well as some of governmental support of HRDF and MONSHA’AT has been received during the fiscal year 2020.
5- Increase in banking charges because of increased interest of contingent liability against non-controlling interest acquisition, however existence of some 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.
6- Increase in Zakat provision.
These results achieved in spite of:
1- General and administrative expenses are lower, because of increased production capacity and enhancing the quality levels in FPC.
2- Re-evaluating the contingent liability against non-controlling interest acquisition.
3- Realized gains of investments at fair value through profit or loss.
|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||– FIPCO has achieved actuarial gains of SR 447K arising from the re-measurement of employee benefit obligations, which are classified under comprehensive income.|
– The balance of non-controlling interest has been adjusted as of the P&L of FPC after reclassification of financing gains in FPC to cope up with the IFRS, which reflected on The Consolidated losses Attributable to Shareholders, total shareholders’ equity and the earning per share, as clarified in details in the disclosure No. 32 of the consolidated financial statement for the fiscal year 2020.
– FIPCO is carefully monitoring the developments related to Covid-19 pandemic and also implemented all precautionary measures to safeguard the safety and well-being of its employees, customers and community to continue running a business as usual basis, in the context of the ongoing pandemic.
The pandemic impact has extended to include the operations delays for some time as a result of taking the precautionary measures directed by the governmental authorities, which were mainly represented in the isolation of influential labors suspected of being infected and the application of legal procedures related to travel and movement restrictions.
COVID 19 is also affected the selling prices of some products, and reflected on supply chain and exports in light of taken precautionary measures.
As the extent and duration of these impacts are still not certain and depend on future developments that cannot be accurately predicted at the present time, FIPCO will continue to monitor the situation in the Kingdom and all surrounding geographical areas with the purpose of reviewing and dividing the potential risks
FIPCO also monitors all governmental support initiatives provided by the government of the Custodian of the Two Holy Mosques to mitigate the effects of Corona virus implications and studying its benefits to support the sustainable activities and business continuity.