Herfy Foods Profits Decreases to SR20 mln during 2Q, by 24%

Herfy Food Services Company revealed a decrease in net profit after zakat and tax in the second quarter to SR20.1 million, compared to SR26.6 million in the same quarter of last year, at a rate of 24.2%.

This came after the announcement on Wednesday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The operational profit amounted to SR27 million in the 2Q, compared to SR34.6 million in the same quarter of the previous year, a decline of 21.8%.

The gross profit in the 2Q, it amounted to SR65.4 million, compared to SR80.9 million in the same quarter of last year, a decrease of 19.11%.

The gross shareholders’ equity “without minority rights” amounted to SR1.09 billion in the 6-month period, compared to SR946.8 million in the same period last year, a growth of 15.8%.

Profits per share in the current period reached SR0.75, compared to SR0.81 in the same period last year.

The reason for the Decrease in the net profit for the 2nd Quarter 2022 compared to the net profit for the same quarter of 2021 mainly attributed to the decrease in Sales due to the intensity of competition, in addition to the increase of the percentage of the cost of sales as a result of the increase in the prices of operating supplies despite the increase of net other Income and decrease of the selling and marketing expenses and decrease finance cost also the decrease of General and Administration Expenses and zakat Expenses.

The reason for the Decrease in the net profit for the 2nd Quarter 2022 compared to the net profit previous quarter 2022 mainly attributed to the decrease in Sales due to the intensity of competition and seasonality of sales, in addition to the increase of the percentage of the cost of sales as a result of the increase in the prices of operating supplies despite the increase of net other Income and decrease of the selling and marketing expenses and the decrease of General and Administration Expenses.

The reason for the Decrease in the net profit for the period ended 30 June 2022 compared to the net profit for the same period last year2021 mainly attributed to the decrease in Sales due to intense competition, in addition to the increase of the percentage of the cost of sales as a result of the increase in the prices of operating supplies and the increase of the selling and marketing expenses despite the increase of net other Income and decrease the finance cost also the decrease of General and Administration Expenses and zakat expenses.