Halwani Bros net profit falls 22% to SAR 19.7 mln in Q1 2022

Halwani Bros. Co. posted a net profit after Zakat and tax of SAR 19.7 million for the first quarter of 2022, a 22% drop from SAR 25.4 million in the year-ago period.

The company reported an increase in the costs of raw materials amid global inflation, which impacted most companies in Q1 2022, compared to the corresponding period last year.

Halwani’s consolidated profit was impacted by the devaluation of the currency exchange rate in its Egypt-based subsidiary. Moreover, the company cited higher spending on marketing offers to customers and consumers during the current quarter compared to Q1 2021, along with an increase in general and administrative expenses during the current three-month period.

When compared to Q4 2021, net profit grew by 6% from SAR 18.58 million, thanks to growth in sales during the current quarter on launching new products in the market in line with the company's general strategy.

Halwani also cited improved sales mix by focusing on the most profitable products.

Shareholders’ equity, excluding minority interest, rose to SAR 561.9 million in the three-month period, from SAR 511.9 million in Q1 2021.

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