FIPCO flips to SAR 15.1M loss in H1 2025, SAR 11.5M in Q2

Filing and Packing Materials Manufacturing Co. (FIPCO) swung to losses of SAR 15.1 million in H1 2025, against a net profit of SAR 3.1 million a year earlier.

During H1 2025, the company reported a decrease in gross profit. This was due to the declined turnover, besides the changing product mix and profitability margins of its subsidiary, FPC Industrial Co.

Additionally, sales and marketing expenses increased during the same period. This was due to the elevated recruitment costs of the subsidiary, which sought to attract qualified administrative staff to enhance the efficiency of its sales and marketing team, in a bid to maximize its market share and expand its local and global presence.

General and administrative expenses also soared in H1 2025. This came as FIPCO has settled some financial and legal due diligence expenses that were due to its financial advisor in relation to the acquisition of Bina Industrial Investment Holding Co.’s full equity interests, in addition to the deeper employees’ provisions.

Furthermore, in H1 2025, FIPCO widened its provision for expected credit losses, in accordance with IFRS 9. This followed delayed collections from some major clients, not to mention the soaring borrowing costs amid higher interest rates.

However, this negative performance came despite higher sales volume and other income as well as a lower Zakat provision for the six-month period.

In Q2 2025, FIPCO’s bottom line turned negative to SAR 11.5 million, versus positive earnings of SAR 1.12 million in Q2 2024.

Sequentially, the company widened losses from SAR 3.61 million in Q1 2025.

Shareholders’ equity, no minority interest, stood at SAR 130.3 million as of June 30, 2025, compared to SAR 146.8 million a year earlier.

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