Halwani Bros. Profits Decreased to SR84 mln at End of 2021, by 16%

Halwani Bros. Company net profit after zakat and tax decreased to SR84 million during the year 2021, compared to SR101 million during the year before last, at a rate of 16%.

This came after Halwani Bros. Company announcement on Wednesday of the estimated annual financial results ending on 31.12.2021 (12 months).

The operational profit during the current period amounted to SR124 million, compared to SR145 million during the same period of the year before, a decrease of 14%.

The gross profit during the current period, it amounted to SR344 million, compared to SR357 million during the same period last year, a decrease of 4%.

Profits per share during the current period amounted to SR2.38, compared to SR2.85 during the same period last year.

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

1. The company delivered topline growth during the current year compared to the previous year behind increased marketing and trade investments.

2. Increase in the costs of raw materials within the global inflation resulting from the effects of Covid-19 during the current year compared to the previous year.

3. An increase in sales and marketing expenses during the current year compared to previous year to support launching marketing campaigns within the company’s strategic plan to support the launch of new products.

4. Completing the organizational structure of the subsidiary company in the Arab Republic of Egypt.

5. Creating an additional provision for zakat on examination differences for the years from 2015 to 2019 and paying the examination differences for the year 2020.

The company said in a statement that the figures in the financial statements have been grouped to conform to the accounting policies for the current year presentation as per International Financial Reporting Standard as endorsed in the Kingdom of Saudi Arabia. For more information, refer note 34- Comparative figures in the Financial Statements for the period ended 31.12.2021.

Profits per share for the twelve months period ended 31.12.2020, 31.12.2021 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 held on 28.04.2021, the company concluded.