‏“‏Halwani Bros.” records SR1.8 mln losses in Q2‎

Halawani Bros. Co. recorded a net loss after zakat and tax in ‎the second quarter to SR 1.8 million, compared to a profit of ‎‎26.2 million riyals in the same quarter of last year (six months).‎

The operating profit amounted to 6.3 million riyals in the ‎second quarter, compared to 36.9 million riyals in the same ‎quarter of the previous year, a decline of 82.9%‎‏.‏

The net profit after zakat and tax in the 6-month period ‎amounted to 17.9 million riyals, compared to 51.6 million riyals ‎in the same period last year, down 65.3%‎‏.‏

The total shareholders’ equity “without minority rights” ‎amounted to 484.5 million riyals in the current period, ‎compared to 538.2 million riyals in the same period last year, ‎down by 9.9%‎‏.‏

Earnings per share in the current period amounted to 0.51 ‎riyals, compared to 1.46 riyals in the same period last year.‎

The reason for the decrease in net profit during the current ‎quarter compared to the same quarter of the previous year is ‎due to:‎

‎1) The company’s Gross profit decreased by 26% during the ‎current quarter compared to the same quarter of the previous ‎year as a result of the company’s being affected by the increase ‎in the prices of raw materials costs within the global inflation ‎that had an impact on most companies.‎

‎2) The consolidated company’s profits were affected by the ‎depreciation of the currency exchange rate in the subsidiary ‎company in Egypt.‎

‎3) Marketing campaigns for customers and consumers led to an ‎increase in spending during the current quarter compared to ‎the same quarter of the previous year.‎

In light of global developments with the rise in interest rates, ‎the Saudi Central Bank (SAMA) has raised the rate of repo ‎agreements which led to an increase in the cost of financing, ‎and this is in line with the goal of the Saudi Central Bank to ‎maintain monetary and financial stability.‎

The reason for the decrease in net profit during the current ‎quarter compared to the previous quarter is due to:‎

‎1) The profit of the consolidated company was affected by the ‎depreciation of the currency exchange rate in the subsidiary ‎company in Egypt.‎

‎2) The increase in the cost of financing, mainly due to the high ‎interest rates set by the Saudi Central Bank.‎

‎3) As a result of the nature of seasonal demand during the ‎month of Ramadan and the Eid al-Fitr holiday during the ‎current quarter compared to the previous quarter.‎

The reason for the decrease in net profit during the current ‎period compared to the same period of the previous year is ‎due to:‎

‎1) The company’s Gross profit decreased by 14% during the ‎current period compared to the same period of the previous ‎year as a result of the company’s being affected by the increase ‎in the prices of raw materials costs within the global inflation, ‎which had an impact on most companies.‎

‎2) The consolidated company’s profits were affected by the ‎depreciation of the currency exchange rate in the subsidiary ‎company in Egypt.‎

‎3) Marketing campaigns for customers and consumers led to an ‎increase in spending on during the current period compared to ‎the same period of the previous year.‎

‎4) The increase in the cost of financing, mainly due to the high ‎interest rates set by the Saudi Central Bank.‎

Additional Information:‎

Earnings per share for the six-month period ending on ‎‎30/06/2022 and 30/06/2021 was calculated by dividing the net ‎income for the period by 35,357,145 shares (Including Bonus ‎Shares) based on the approval of the Extraordinary General ‎Assembly to increase the capital by granting free shares on ‎‎28/04/2021‎