Filling & Packing Materials MFG. Co. (FIPCO) announces the Consolidated Interim Financial results for the period ended Jun. 30, 2026 (Six Months)

FIPCO reported a net profit of SAR 3.3 million for Q2 2026, marking a significant recovery from a net loss of SAR 11.5 million in the same quarter last year, while H1 2026 net profit reached SAR 5.9 million compared to a SAR 15.1 million loss in H1 2025.
Quarterly revenue increased 20.6% year-on-year to SAR 79.7 million, driven by higher demand for key products and improved selling prices at both the parent company and its subsidiary, FPC.
Gross profit for H1 2026 surged by 85.5% to SAR 32.1 million, benefiting from enhanced profit margins and a reduction in general and administrative expenses following the conclusion of one-off acquisition-related due diligence costs incurred in the prior year.
The return to profitability was supported by lower expected credit loss provisions and higher government-related income, despite headwinds including rising freight costs from geopolitical developments and increased finance charges due to higher borrowing levels.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	79.7	66.1	20.574	64.5	23.565
Gross Profit (Loss)	17.2	8.5	102.352	14.9	15.436
Operational Profit (Loss)	4.6	-10.2	-	2.9	58.62
Net Profit (Loss) Attributable to Shareholders of the Issuer	3.3	-11.5	-	2.6	26.923
Total Comprehensive Income Attributable to Shareholders of the Issuer	3.3	-11.5	-	2.6	26.923
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	144.2	119.8	20.367
Gross Profit (Loss)	32.1	17.3	85.549
Operational Profit (Loss)	7.5	-12.4	-
Net Profit (Loss) Attributable to Shareholders of the Issuer	5.9	-15.1	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	5.9	-15.1	-
Total Shareholders Equity (after Deducting Minority Equity)	132.2	130.3	1.458
Profit (Loss) per Share	0.52	-1.32
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	The increase in sales was primarily driven by higher demand for certain key products, along with higher selling prices at the Parent Company and its subsidiary (FPC).
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	FIPCO achieved net profit during the second quarter of the financial year 2026, compared to a net loss recorded during the second quarter of the financial year 2025, mainly due to the following: 1- An increase in gross profit because of higher sales and improved profit margins at the Company and its subsidiary (FPC). 2- Decrease in G&A expenses because of settling the financial and legal due diligence expenses paid to the financial advisor that relates to the acquisition of Bina Industrial Investment Holding Co. full equity interests in the company during the second quarter of 2025. 3- Expected credit losses provision has been decreased in accordance with IFRS 9. 4- Higher other income. These positive results were achieved despite the following: 1- An increase in selling and marketing expenses due to higher freight costs arising from the current geopolitical developments. 2- An increase in the Zakat provision.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The increase in sales was primarily attributable to higher demand for certain key products, together with an increase in selling prices at both the Parent Company and its subsidiary (FPC).
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The increase in net profit recorded during the second quarter of 2026, compared to the net profit recorded during the preceding quarter of the same year, was mainly attributable to the following: 1- An increase in gross profit driven by higher sales and improved profit margins at both the Company and its subsidiary (FPC). 2- Expected credit losses provision has been decreased in accordance with IFRS 9. These results were achieved despite the following: 1- An increase in selling and marketing expenses due to higher freight costs arising from the current geopolitical developments. 2- An increase in finance costs due to higher borrowings. 3- A decrease in other income. 4- An increase in the Zakat provision.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The increase in sales was primarily driven by higher demand for certain key products, together with higher selling prices at both the Parent Company and its subsidiary (FPC).
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	FIPCO achieved net profit during the second quarter of the financial year 2026, compared to a net loss recorded during the second quarter of the financial year 2025, mainly due to the following: 1- An increase in gross profit because of higher sales and improved profit margins at the Company and its subsidiary (FPC). 2- Decrease in G&A expenses because of settling the financial and legal due diligence expenses paid to the financial advisor that relates to the acquisition of Bina Industrial Investment Holding Co. full equity interests in the company during the first half of 2025. 3- Expected credit losses provision has been decreased in accordance with IFRS 9. 4- Higher other income, primarily due to the Company's benefit from certain government initiatives. These positive results were achieved despite the following: 1- An increase in selling and marketing expenses due to higher freight costs arising from the current geopolitical developments. 2- An increase in the finance costs as a result of higher borrowings.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	N/A
Reclassification of Comparison Items	Certain Comparative figures have been reclassified to be consistent with the presentation of the current period presentation.
Additional Information	-