Halwani Bros H1 2022 profit slumps 65% to SAR 17.9 mln; Q2 loss at SAR 1.8 mln

Halwani Bros Co. posted a 65% slump in H1 2022 net profit after Zakat and tax to SAR 17.9 million from SAR 51.6 million a year earlier.

The company's gross profit dropped 14% year-on-year (YoY) due to increased costs of raw materials globally, which had an impact on most companies.

Consolidated profits were hit by the depreciation of the currency exchange rate in the Egypt-based subsidiary.

Moreover, the marketing campaigns for customers and consumers increased spending during the current period compared H1 2021. Halwani Bros also cited higher financing costs.

In Q2 2022, the company sustained a net loss of SAR 1.8 million, against a net profit of SAR 26.24 million in the prior-year period, as gross profit fell by 26% YoY. The second-quarter net profit was also impacted by the Egyptian currency depreciation.

The company swung to losses from a net profit of SAR 19.65 million in Q1 2022.

Shareholders’ equity, after minority interest, dropped to SAR 484.5 million as of June 30, 2022, from SAR 538.2 million a year earlier.

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