Herfy loses 23.7 million riyals in the second quarter

Herfy Food Services Company recorded a loss of 23.7 million riyals during the second quarter of 2024, compared to a profit of 4.5 million riyals in the same quarter last year. This came after the announcement today of the estimated financial results for the period ending June 30, 2024 (6 months).

The operating loss amounted to 4.5 million riyals in the second quarter, compared to a profit of 13.4 million riyals in the same quarter of the previous year.

The earnings per share in the current period reached 0.36 riyals, compared to 0.13 riyals in the same period last year.

According to the company, the reason for achieving a net loss in the second quarter of 2024 compared to a net profit for the same quarter of 2023 is due to the increase in sales and marketing expenses as a result of the increase in delivery application expenses, in addition to the increase in general administrative expenses, which included the settlement of dues for former executives of the company, including the implementation of a judicial ruling from the labor court in favor of the former acting CEO, Khaled Ahmed Al-Saeed, in which he demanded a balance of unused vacations for a period exceeding 18 years, in addition to the increase in financing expenses, and the increase in zakat expenses based on zakat settlements for previous years from 2014 to 2018, despite the increase in sales and other revenues. The reason for achieving a net loss for the second quarter of 2024 compared to a net profit for the previous quarter of 2024 is due to the increase in sales and marketing expenses as a result of the increase in delivery application expenses, in addition to the increase in general administrative expenses, which included the settlement of dues for former executives of the company, including the implementation of a judicial ruling from the labor court in favor of the former acting CEO, Khaled Ahmed Al-Saeed, in which he demanded a balance of unused vacations for a period exceeding 18 years, and the increase in zakat expenses based on zakat settlements for previous years from 2014 to 2018, despite the increase in sales and other revenues. The increase in net loss for the period ending June 30, 2024 compared to the net loss for the same period of the previous year 2023 is due to the increase in sales and marketing expenses as a result of the increase in delivery application expenses, in addition to the increase in general administrative expenses, which included the settlement of dues for former executives of the company, including the implementation of a judicial ruling from the labor court in favor of the former acting CEO, Khaled Ahmed Al-Saeed, in which he demanded a balance of unused vacations for a period exceeding 18 years, an increase in financing expenses, and an increase in zakat expenses based on zakat settlements for previous years from 2014 to 2018, despite the increase in sales and other revenues.