‎ “Herfy Food” profits dip 97.6% during 2022, to SR3.5 mln ‎

Herfy Food Services Company SJSC revealed a decline in net profit after zakat and tax during the year ending on December 31, 2022 to 3.5 million riyals, compared to 151.7 million riyals in the previous year, at a rate of 97.6%. This came after today’s announcement of the annual financial results ending in 2022- 12-31.

The operational profit amounted to 41 million riyals during the year ending on December 31, 2022, compared to 193.7 million riyals in the previous year, a decline of 78.8%.

The total shareholders’ equity “without minority rights” amounted to 1.05 billion riyals in the current year, compared to 1.04 billion riyals in the previous year, an increase of 1.24%.

Earnings per share in the current year reached 0.05 riyals, compared to 2.35 riyals in the previous year.

– The reason for the decrease in net profit during 2022 compared to the previous year 2021 is due to a decrease in sales, an increase in the percentage of the cost of sales, an increase in marketing and selling expenses, and an increase in general and administrative expenses. During the fourth quarter of 2022, the provision for trade receivables and other provisions were reinforced Due to the decline in assets and properties and the provision for slow moving inventory, in addition to the financial impact of re-estimating the useful lives of the leased assets according to the International Accounting Standard IFRS 16.