‎“Halwani Bros.” profits decreased to SR1.6 mln during Q1, by ‎‎92%‎

The net profit after zakat and tax for Halawani Bros. decreased to 1.6 million riyals during the first quarter, compared to 20 million riyals in the same quarter of last year, by 92%. This came after the announcement today of the preliminary financial results for the period ending on 03-31-2023. (three months).

The operational profit amounted to 13.4 million riyals in the first quarter, compared to 31 million riyals in the same quarter of the previous year, with a decrease of 56%.

As for gross profit, it amounted to 71 million riyals in the current period, compared to 96 million riyals in the same period last year, a decrease of 26%.

Earnings per share in the current period amounted to 0.05 riyals, compared to 0.56 riyals in the same period last year.

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

1) As a result of the decrease in the company’s sales in the Kingdom of Saudi Arabia (domestic and export).

2) Despite the increase in the sales of the subsidiary company in Egyptian pounds in the Arab Republic of Egypt, the sales of the consolidated company decreased in Saudi riyals as a result of the decrease in the exchange rate of the Egyptian pound.

3) The decrease in the total profit of the company by 26% during the current quarter compared to the same quarter of the previous year as a result of the increase in the average stock prices of raw materials.

4) 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.

5) An increase in the financing cost, mainly due to the high interest rates set by the Saudi Central Bank

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

1) 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.

2) An increase in the financing cost, mainly due to the high interest rates set by the Saudi Central Bank

3) An increase in selling and distribution expenses with the start of the month of Ramadan during the current quarter.

4) Recording other revenues during the previous quarter resulting from compensation for two plots of land owned by the company within the Jeddah Central Development Project.

The company said that some comparative figures have been reclassified to conform to the classification used for the period ending on March 31, 2023.