‎“Halwani Bros” records losses of 30 million riyals during Q2, an ‎increase of 1555%‎

Halwani Bros Company recorded losses after zakat and tax of 30 million riyals during the second quarter, compared to losses of 1.8 million riyals in the same quarter of last year, an increase of 1555%. This came after today’s announcement of the preliminary financial results for the period ending on June 30, 2023 AD ( 6 months).

The operational loss amounted to 19 million riyals during the second quarter, compared to a profit of 6.3 million riyals in the same quarter of the previous year.

As for the total profit, it amounted to 38 million riyals during the second quarter, compared to 65 million riyals in the same quarter of the previous year, a decrease of 41%.

The net loss after zakat and tax during the 6-month period amounted to 28 million riyals, compared to a profit of 18 million riyals in the same period last year.

The loss per share in the current period amounted to 0.8 riyals, compared to 0.5 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) The decrease in the company’s sales in the Kingdom of Saudi Arabia

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) Decrease in the company’s total profit during the current quarter compared to the same quarter of the previous year as a result of the decrease in sales and the increase in the average inventory 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 decrease in gross profit during the current quarter compared to the previous quarter as a result of the decrease in sales resulting from the nature of seasonal demand.

2) Recording other revenues during the previous quarter resulting from the sale of unused assets.

3) 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 period compared to the same period of the previous year is due to:

1) The decrease in the company’s sales in the Kingdom of Saudi Arabia

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 during the current period compared to the same period of the previous year as a result of the decrease in sales and the increase in the average inventory 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 company said that some comparative figures have been reclassified to conform to the classification used for the period ending on June 30, 2023.