Halwani Brothers profits decrease by 97% to SAR 3 mln at the end of 2022

Halwani Bros. Co. announced on Sunday a decrease in net profit after zakat and tax during the year ending on December 31, 2022, to SAR 3 million, compared to SAR 84.2 million in the previous year, at a rate of 96.5%. This came after today’s announcement of the annual financial results ending on 12-31-2022.
The operating profit amounted to SAR 46.7 million during the year ending on December 31, 2022, compared to SAR 124 million in the previous year, a decrease of 62.3%.
The total shareholders’ equity “without minority rights” amounted to SAR 433.6 million in the current year, compared to SAR 569.9 million in the previous year, with a growth of 24%.
Earnings per share in the current year reached 0.08 riyals, compared to SAR 2.38 in the previous year.
The reason for the decrease in net profit during this year compared to the previous year is due to:
1) The decrease in the sales of the subsidiary company in the Arab Republic of Egypt as a result of the economic conditions resulting from the change in the exchange rates of the Egyptian pound.
2) The decrease in the total profit of the company by 21% during the current year compared to the previous year as a result of the company being affected by the increase in the prices of raw materials costs within the global inflation, which had an impact on most companies.
3) The profits of the consolidated company were affected by the decrease in the currency exchange rate in the subsidiary company in the Arab Republic of Egypt.
4) An increase in general and administrative expenses during the current year compared to the previous year.
5) An increase in the financing cost, mainly due to the high interest rates set by the Central Bank of Saudi Arabia.
Earnings per share for the twelve months period ending on 31/12/2022 and 31/12/2021 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.