FIPCO’s 2023 profit rises 23% to SAR 12M; Q4 at SAR 7.1M

17/03/2024 Argaam Exclusive

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Filing and Packing Materials Manufacturing Co. (FIPCO)

Filing and Packing Materials Manufacturing Co. (FIPCO) reported a net profit leap of 32% to SAR 12 million in 2023, compared to SAR 9.8 million in 202



Financials (M)

Item 2022 2023 Change‬
Revenues 260.65 238.03 (8.7 %)
Gross Income 42.20 47.81 13.3 %
Operating Income 6.27 12.42 98.1 %
Net Income 9.80 11.99 22.4 %
Average Shares 11.50 11.50 -
EPS (Riyals) 0.85 1.04 22.4 %

The annual bottom line was driven by an increase in gross profit despite a decline in sales, due to the sales mix variance and improved profit margins.

 

FIPCO also reported lower selling and marketing expenses amid decreased shipping rates. Further, the expected credit losses provision decreased in accordance with IFRS 9, thanks to the company’s improved collections, enhanced control and the recognition of some credit facilities to some customers as guarantees to mitigate the risks of default and non-payment.

 

The paper manufacturer also recorded a decline in Zakat provisions and a rise in other income on obtaining the Saudization support from Human Resources Development Fund (HRDF), in addition to VAT refunds for bad debt write-offs.

 

FIPCO also recorded a Murabaha deposit income through optimal exploitation of the company’s available cash in 2023.

 

On the other hand, the sales volume of some key products declined amid lower selling prices.

 

General and administrative expenses increased, due to higher staff costs.

 

Realized and unrealized gains of investments at fair value through profit or loss resulted also declined from liquidating most investments.



Current Quarter Comparison (M)

Compared With The
Item Q4 2022 Q4 2023 Change‬
Revenues 63.99 67.13 4.9 %
Gross Income 11.84 14.55 22.9 %
Operating Income 1.43 4.33 202.4 %
Net Income 6.29 7.08 12.6 %
Average Shares 11.50 11.50 -
EPS (Riyals) 0.55 0.62 12.6 %

The fourth-quarter net earnings jumped 13% to SAR 7.1 million from SAR 6.2 million in Q4 2022.

 

On a sequential basis, Q4 net profit soared 92.1% from SAR 3.6 million.

 

Total shareholders’ equity, no minority interest, reached SAR 143.7 million as of Dec. 31, 2023, compared to SAR 132 million in a year-earlier period.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 48.90 (13.4 %) 11.96 0.5 % 6.93 0.3 % 0.60
Q2 2014 45.27 (20.8 %) 11.01 (2.2 %) 6.54 (1.1 %) 0.57
Q3 2014 50.48 (2.9 %) 10.14 (8.0 %) 5.31 (7.9 %) 0.46
Q4 2014 59.90 22.9 % 10.67 3.2 % 5.49 (11.3 %) 0.48
Q1 2015 50.37 3.0 % 7.14 (40.3 %) 2.51 (63.8 %) 0.22
Q2 2015 51.89 14.6 % 10.90 (1.0 %) 5.52 (15.6 %) 0.48
Q3 2015 47.83 (5.3 %) 9.94 (2.0 %) 4.71 (11.2 %) 0.41
Q4 2015 41.14 (31.3 %) 7.19 (32.6 %) 0.42 (92.4 %) 0.04
Q1 2016 45.15 (10.4 %) 9.39 31.7 % 4.54 81.0 % 0.39
Q2 2016 44.36 (14.5 %) 9.40 (13.8 %) 3.90 (29.3 %) 0.34
Q3 2016 30.65 (35.9 %) 4.45 (55.3 %) 0.14 (97.0 %) 0.01
Q4 2016 44.92 9.2 % 6.59 (8.3 %) 2.60 521.0 % 0.23
Q1 2017 41.19 (8.8 %) 7.74 (17.6 %) 3.18 (29.9 %) 0.28
Q2 2017 40.43 (8.9 %) 6.92 (26.3 %) 0.48 (87.7 %) 0.04
Q3 2017 34.59 12.9 % 6.01 35.2 % 0.51 265.0 % 0.04
Q4 2017 37.39 (16.8 %) 6.64 0.7 % 0.98 (62.3 %) 0.09
Q1 2018 35.75 (13.2 %) 8.05 4.0 % 1.13 (64.5 %) 0.10
Q2 2018 43.83 8.4 % 8.28 19.6 % 0.70 44.8 % 0.06
Q3 2018 43.90 26.9 % 7.87 31.0 % 0.77 49.7 % 0.07
Q4 2018 40.06 7.1 % 5.08 (23.4 %) (8.49) (964.5 %) (0.74)
Q1 2019 36.71 2.7 % 5.78 (28.2 %) (2.22) (296.5 %) (0.19)
Q2 2019 38.14 (13.0 %) 6.06 (26.7 %) (4.77) (786.6 %) (0.41)
Q3 2019 46.23 5.3 % 6.46 (17.9 %) (2.73) (456.6 %) (0.24)
Q4 2019 43.05 7.5 % 2.34 (54.1 %) (10.94) (28.9 %) (0.95)
Q1 2020 48.33 31.6 % 10.09 74.7 % 4.18 288.5 % 0.36
Q2 2020 45.20 18.5 % 5.11 (15.7 %) (3.36) 29.6 % (0.29)
Q3 2020 41.47 (10.3 %) 5.51 (14.8 %) (2.95) (8.0 %) (0.26)
Q4 2020 46.51 8.0 % 8.60 268.4 % (0.85) 92.2 % (0.07)
Q1 2021 48.54 0.4 % 8.21 (18.7 %) (1.53) (136.5 %) (0.13)
Q2 2021 58.81 30.1 % 5.58 9.3 % (5.21) (55.3 %) (0.45)
Q3 2021 54.93 32.4 % 5.94 7.9 % (3.44) (16.9 %) (0.30)
Q4 2021 60.32 29.7 % 9.26 7.6 % 1.12 231.4 % 0.10
Q1 2022 62.88 29.6 % 8.63 5.1 % 0.37 124.0 % 0.03
Q2 2022 71.28 21.2 % 10.96 96.3 % 0.89 117.1 % 0.08
Q3 2022 62.51 13.8 % 10.78 81.4 % 2.25 165.3 % 0.20
Q4 2022 63.99 6.1 % 11.84 28.0 % 6.29 460.4 % 0.55
Q1 2023 63.89 1.6 % 11.14 29.2 % 1.54 321.2 % 0.13
Q2 2023 45.93 (35.6 %) 9.27 (15.4 %) 0.06 (93.4 %) 0.01
Q3 2023 61.08 (2.3 %) 13.24 22.9 % 3.69 63.9 % 0.32
Q4 2023 67.13 4.9 % 14.55 22.9 % 7.08 12.6 % 0.62
2023 238.03 (8.7 %) 47.81 13.3 % 11.99 22.4 % 1.04

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 21.56 % 18.07 % 12.33 %
Q2 2014 22.74 % 18.95 % 13.04 %
Q3 2014 22.46 % 19.12 % 12.91 %
Q4 2014 21.40 % 18.14 % 11.86 %
Q1 2015 18.91 % 15.64 % 9.63 %
Q2 2015 18.27 % 14.88 % 8.85 %
Q3 2015 18.40 % 14.74 % 8.68 %
Q4 2015 18.39 % 14.15 % 7.66 %
Q1 2016 20.12 % 15.73 % 8.97 %
Q2 2016 20.12 % 15.66 % 8.44 %
Q3 2016 18.86 % 14.69 % 6.51 %
Q4 2016 18.07 % 13.92 % 6.77 %
Q1 2017 17.49 % 11.80 % 6.10 %
Q2 2017 16.35 % 9.00 % 4.07 %
Q3 2017 16.92 % 8.27 % 4.20 %
Q4 2017 17.78 % 7.83 % 3.36 %
Q1 2018 18.64 % 8.25 % 2.09 %
Q2 2018 19.12 % 8.92 % 2.19 %
Q3 2018 19.17 % 8.40 % 2.22 %
Q4 2018 17.90 % 2.67 % (3.61 %)
Q1 2019 16.42 % (0.22 %) (5.62 %)
Q2 2019 15.61 % (4.11 %) (9.27 %)
Q3 2019 14.51 % (5.74 %) (11.30 %)
Q4 2019 12.57 % (10.97 %) (14.62 %)
Q1 2020 14.20 % (5.36 %) (10.01 %)
Q2 2020 13.13 % (3.86 %) (8.85 %)
Q3 2020 12.94 % (2.82 %) (9.21 %)
Q4 2020 16.15 % 5.10 % (1.64 %)
Q1 2021 15.09 % 1.78 % (4.78 %)
Q2 2021 14.28 % 1.12 % (5.40 %)
Q3 2021 13.57 % 0.16 % (5.29 %)
Q4 2021 13.02 % 1.30 % (4.07 %)
Q1 2022 12.41 % 1.69 % (3.03 %)
Q2 2022 13.95 % 3.18 % (0.43 %)
Q3 2022 15.42 % 5.17 % 1.80 %
Q4 2022 16.19 % 5.68 % 3.76 %
Q1 2023 17.09 % 6.82 % 4.19 %
Q2 2023 18.21 % 7.75 % 4.29 %
Q3 2023 19.37 % 7.92 % 4.93 %
Q4 2023 20.25 % 9.17 % 5.20 %
2023 20.08 % 9.00 % 5.04 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 11.50 2.22 2.22 15.74
Q2 2014 11.50 2.21 2.21 15.17
Q3 2014 11.50 2.17 2.17 15.63
Q4 2014 11.50 2.11 2.11 16.11
Q1 2015 11.50 1.73 1.73 16.32
Q2 2015 11.50 1.64 1.64 15.68
Q3 2015 11.50 1.58 1.58 16.09
Q4 2015 11.50 1.14 1.27 16.13
Q1 2016 11.50 1.32 1.45 16.54
Q2 2016 11.50 1.18 1.31 16.86
Q3 2016 11.50 0.78 0.91 16.87
Q4 2016 11.50 0.97 0.97 15.97
Q1 2017 11.50 0.85 0.85 16.25
Q2 2017 11.50 0.56 0.56 15.80
Q3 2017 11.50 0.59 0.59 15.87
Q4 2017 11.50 0.45 0.45 15.96
Q1 2018 11.50 0.27 0.27 16.06
Q2 2018 11.50 0.29 0.29 16.13
Q3 2018 11.50 0.31 0.31 16.20
Q4 2018 11.50 (0.51) (0.51) 15.39
Q1 2019 11.50 (0.80) (0.80) 15.54
Q2 2019 11.50 (1.28) (1.28) 14.97
Q3 2019 11.50 (1.58) (1.58) 14.57
Q4 2019 11.50 (1.80) (2.09) 13.70
Q1 2020 11.50 (1.24) (1.53) 12.46
Q2 2020 11.50 (1.12) (1.41) 12.17
Q3 2020 11.50 (1.14) (1.43) 11.92
Q4 2020 11.50 (0.26) (0.26) 11.19
Q1 2021 11.50 (0.76) (0.76) 11.06
Q2 2021 11.50 (0.92) (0.92) 10.61
Q3 2021 11.50 (0.96) (0.96) 10.31
Q4 2021 11.50 (0.79) (0.79) 10.44
Q1 2022 11.50 (0.62) (0.62) 10.47
Q2 2022 11.50 (0.09) (0.09) 10.55
Q3 2022 11.50 0.40 0.40 10.75
Q4 2022 11.50 0.85 0.85 11.48
Q1 2023 11.50 0.95 0.95 11.62
Q2 2023 11.50 0.88 0.88 11.59
Q3 2023 11.50 1.01 1.01 11.91
Q4 2023 11.50 1.08 1.08 12.50

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 25.15 25.15 3.54
Q2 2014 28.41 28.41 4.14
Q3 2014 31.55 31.55 4.38
Q4 2014 21.83 21.83 2.86
Q1 2015 28.72 28.72 3.04
Q2 2015 29.32 29.32 3.06
Q3 2015 23.12 23.12 2.28
Q4 2015 33.08 29.69 2.35
Q1 2016 25.14 22.88 2.01
Q2 2016 38.07 34.28 2.66
Q3 2016 37.83 32.42 1.75
Q4 2016 36.66 36.66 2.23
Q1 2017 41.70 41.70 2.19
Q2 2017 59.63 59.63 2.10
Q3 2017 58.91 58.91 2.19
Q4 2017 72.52 72.52 2.04
Q1 2018 More than 100 More than 100 2.11
Q2 2018 More than 100 More than 100 2.12
Q3 2018 More than 100 More than 100 2.26
Q4 2018 NEG NEG 2.26
Q1 2019 NEG NEG 2.15
Q2 2019 NEG NEG 2.04
Q3 2019 NEG NEG 2.04
Q4 2019 NEG NEG 2.11
Q1 2020 NEG NEG 2.75
Q2 2020 NEG NEG 3.57
Q3 2020 NEG NEG 4.45
Q4 2020 NEG NEG 5.35
Q1 2021 NEG NEG 5.89
Q2 2021 NEG NEG 6.70
Q3 2021 NEG NEG 6.40
Q4 2021 NEG NEG 5.05
Q1 2022 NEG NEG 5.17
Q2 2022 NEG NEG 3.96
Q3 2022 98.39 98.39 3.68
Q4 2022 40.92 40.92 3.04
Q1 2023 40.88 40.88 3.36
Q2 2023 47.58 47.58 3.62
Q3 2023 52.74 52.74 4.46
Q4 2023 50.96 50.96 4.39

Business Segments (Million)

Compared With The
Period Products of packing and packaging Technical textiles
Q1 2020 41.83 6.49
Q2 2020 36.38 8.83
Q3 2020 32.07 9.40
Q4 2020 35.87 10.64
Q1 2021 35.63 12.91
Q2 2021 47.08 11.73
Q3 2021 41.88 13.04
Q4 2021 48.34 11.98
Q1 2022 49.43 11.12
Q2 2022 51.70 19.57
Q3 2022 52.51 10.00
Q4 2022 46.37 17.62
Q1 2023 43.31 20.59
Q2 2023 34.48 11.45
Q3 2023 45.86 15.22
Q4 2023 41.49 25.64

Current
Market Cap (M Riyal) 568.68
Enterprise Value (EV) (M) 614.97
Shares Outstanding ((M)) 11.50
EPS ( Riyal) (TTM) 1.12
Book Value (BV) ( Riyal) 12.67
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 44.25
P/E (TTM) 44.25
Price/book 3.90
Return on Average Assets (%) (TTM) 4.3
Return on Average Equity (%) (TTM) 9.2

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