Herfy Food Records Profits of SAR 5.6 mln during Q4 of 2023

Herfy Food Services Company recorded a net profit during the fourth quarter of 5.6 million riyals, compared to a loss of 59.2 million riyals in the same quarter of last year. This came after today’s announcement of the preliminary financial results for the period ending on December 31, 2023 (twelve months).

Operating profit reached 14.3 million riyals in the fourth quarter, compared to a loss of 50.9 million riyals in the same quarter of the previous year.

Net profit after zakat and tax in the 12-month period amounted to 8.3 million riyals, compared to 3.5 million riyals in the same period last year, a growth of 136.4%.

Total ownership rights (after excluding non-controlling interests) amounted to 1.03 billion riyals in the current period, compared to 1.05 billion riyals in the same period last year, a decline of 2.1%.

Earnings per share in the current period reached 0.13 riyals, compared to 0.05 riyals in the same period last year.

The Mainor decrease in the sales for the fourth quarter of 2023 compared to sales for the same quarter of 2022 is due to the decrease in sales of the restaurant sector compared to the increase in sales of other sectors.

The reason for achieved net profit for the 4 the Quarter of 2023 compared to the net losses for the Same quarter of 2022 is due to the decrease of the selling and marketing expenses, General and Administration Expenses, and the decrease of the finance cost despite the decrease of net other Income and the increase zakat Expenses.

The reason for the decrease in sales in the fourth quarter of 2023 compared to the previous quarter is due to a decrease in the restaurant sector sales due to the vacation seasonality.

The reason for the decrease in net profit for the 4th Quarter of 2023 compared to the previous quarter of 2023 is due to a decrease in sales and net other Income, also the increase of the general and administrative expenses, an increase Zakat expenses, despite a decrease of marketing and selling expenses and finance cost.

The reason for the decrease in sales for the period ended 31 December 2023 compared to the same period last year is due to the decrease in sales in the restaurant sector

The reason for the increase in the net profit during the current period ended 31 December 2023 compared to the net profit for the same period last year is due to a decrease in general and administrative expenses and the finance cost Expenses despite a decrease in sales and net other income, also the increase of marketing and selling expenses and an increase of zakat expenses.

Other Matter: The comparative information for the condensed interim statements of financial position, changes in equity and cash flows, and related explanatory notes, for the year ended December 31, 2022 is based on the audited financial statements of the Company for the year ended December 31, 2022. The comparative information for the condensed interim statements of comprehensive income, and related explanatory notes, for the three-month period ended December 31, 2022, has not been audited or reviewed.