FIPCO profits fell 92.5% to 0.9 million riyals in 2024

The profits of the packaging material manufacturer (FIPCO) fell in 2024 by 92.5% to 0.9 million riyals, compared to 12 million riyals in 2023.
According to the company’s statement on Saudi Arabia’s circulation, the reasons for this are mainly due to the following:
1- The total profit is a decrease in the decrease in the volume of sales and profitable margins in the subsidiary due to some effects arising from supply chains, in addition to the continued dumping practices of Chinese and Korean products, which are expected to reduce the effects arising from it in the future and gradually as the period of imposing fees extend to 5 years after the company’s success in winning the case and imposing different dumping fees on those countries.
2- High sales and marketing expenses as a result of the high cost of employment as a result of high Saudization rates, attracting qualified technical cadres and the high shipping expenses arising from the current geopolitical developments.
3- The expected high credit losses in line with international standard No. 9.
4- The decrease in other revenues as a result of the deteriorating value of the added value from the debts of surfaces during the year 2023 AD and the decrease in profits of Al-Murabaha deposits during the current year compared to the year 2023 AD.
These results came despite:
1- Low public and administrative expenses
2- Change in the commitment to purchase the rights of the non-dominant share.
3- The decrease in financial burdens during the year 2024 AD.
4- Decrease in Zakat Division to reflect the amendments made on the Zakat collection regulation.