Food Products Company announces a decrease of 21% in 3Q net profit

11/10/2012 15:13 AST

Food Products Company (FPCO) announces interim financial results for the period ended 30/9/2012 (nine months) as follows :-

Net profit during the third quarter is SR 1.595 million compared to SR 2.013 million for the same quarter of the previous year, a decrease of 21%. And compared to the SR 3.519 million for the previous quarter, it showed a decrease of 55%. While Net profit during the nine months is SR 5.609million compared to SR 8.929 million for the same period of the previous year, a decrease of 37%.

Gross profit during the third quarter is SR 6.908 million compared to SR 7.527 million for the same quarter of the previous year, a decrease of 8%. Gross profit for the nine months is SR 21.347 million compared to SR 24.557 for the same period of the previous year, a decrease of 13%.

Net operating profit during the third quarter is amounted to SR 2.193 million compared to SR 2.824 million for the corresponding quarter of the previous year, a decrease of 22%. Operating profit during the nine months is SR 7.252 million compared to SR 9.764 million for the same period of the previous year, a decrease of 26%.

Earnings per share during the nine months reached to SR 0.28, compared to SR 0.45 for the same period of the previous year.

The company said the reason for lower net profit is attributed to the higher cost of production compared to last year. This was caused by the higher prices of raw materials both from the domestic and overseas markets, Unfortunately, this did not reflect on the selling prices of the finished goods due to fierce competition in the local market, and because of the need to maintain the company's market shares at the required levels. The lower profitability is also due to the high Ramadan sales during the previous quarter, which had its impact resulting in higher profitability. Moreover, the lower profit is also due to the declines in the foreign sales as a result of the circumstances surrounding the region. Some have been reclassified comparative figures to confirm with the current year presentation.

Gulfbase.com