Halwani Brothers profits fell to SR14 mln during the 3Q, down 44%

Halwani Brothers Company net profit after zakat and tax for decreased to SR14 million during the third quarter, compared to SR25 million during the same quarter of the previous year, at a rate of 44%.

This came after Halwani Brothers Company announced on Sunday of the consolidated preliminary financial results for the period ending on September 30, 2021 AD (9 months).

The total profit amounted to SR70 million during the third quarter, compared to SR86 million during the same quarter of the previous year, a decline of 19%.

The operational profit amounted to SR23 million during the third quarter, compared to SR35 million during the same quarter of the previous year, a decrease of 35%.

The net profit after zakat and tax during the current period amounted to SR66 million, compared to SR81 million during the same period of the previous year, a decrease of 19%.

The Decrease in the net Profit for the current quarter as compared to the corresponding quarter of the previous year is due to:

1) The decrease in the company’s revenues in Saudi Arabia during the current quarter compared to exceptional revenue for the same quarter of the previous year due to the (Covid-19) impact, despite of the increase in the revenues of the subsidiary company in Egypt.

2) The increase in the costs of raw materials and the increase in the discounts and incentives granted to customers and consumers due to the weak purchasing power of consumers as a result of the precautionary measures.

3) An increase in selling and marketing expenses during the current quarter compared to the same quarter of the previous year as a result of launching marketing campaign according to the company’s strategic plan to support the launch of the new products.

The Decrease in the net profit for the current quarter compared to the previous quarter is due to:

1) The revenue of the current quarter has decreased compared to the previous quarter due to the nature of seasonal demand.

2) The increase in the cost of raw materials and the increase in the discounts and incentives granted to customers and consumers due to the weak purchasing power of consumers during the current quarter compared to the previous quarter.

The Decrease in the net Profit for the current period as compared to the corresponding period of the previous year is due to:

1) The decrease in the company’s revenues in Saudi Arabia during the current period compared to exceptional revenue for the same period of the previous year due to the (Covid-19) impact, despite of the increase in the revenues of the subsidiary company in Egypt.

2) The increase in the cost of raw materials and the increase in the discounts and incentives granted to customers and consumers due to the weak purchasing power of consumers as a result of the precautionary measures.

3) An increase in selling and marketing expenses during the current period compared to the same period of the previous year as a result of launching marketing campaign according to the company’s strategic plan to support the launch of the new products.

4) Completing the organizational structure of the subsidiary company in Egypt.

The figures in the interim financial statements have been grouped to conform with the accounting policies for the current year presentation as per International Financial Reporting Standard as endorsed in the Kingdom of Saudi Arabia.

Earnings per share for the nine months period ended 30/09/2020, 30/09/2021 have been calculated by dividing the net income for the period by 35,357,145 shares (including bonus shares) according to the Extra Ordinary General Assembly’s approval on the Capital increase by way of issuing bonus shares in its meeting dated 28-04-2021.