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Halwani Bros Co.'s Chief Executive Saleh Ahmed Al Hefni considered his company's performance in 2017 reasonable, given challenging conditions in the company's main markets.
In 2017, Halwani Bros.’s sales volumes remained unchanged in Saudi Arabia, and declined in Egypt, while profit margins ranged between 35 and 40 percent in Saudi Arabia, and 65 percent in Egypt, said Al Hefni.
The company holds 60 percent of the beef products market in Egypt, and 48 percent in Saudi Arabia.
In Saudi Arabia, the company commands a market share of 42 percent of halawa products market and 45 percent of Tahina products.
"We export our products to 30 countries worldwide, including Libya (15 percent of products) and Yemen (30 percent)," he added.
“Halwani cannot anticipate (with accuracy) the expected volume of exports, due to the political turmoil in both countries, where purchasing power is low.”
For the Egyptian market, Al Hefni ruled out a need to set aside provisions to counter the forex translation changes after the floatation of the pound.
The company’s board of directors has approved an expansion strategy, in line with Saudi Vision 2030, to help boost sales over the next five years, Al Hefni said.
Halwani reported a net profit of SAR 71.3 million for fiscal year 2017 -- 37.4 percent above the same period of last year.
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