Halwani widens 9M 2023 loss to SAR 70.6 mln; Q3 at SAR 42.5 mln

Halwani Bros Co. slid into a deeper net loss of SAR 70.6 million in first nine months of 2023, compared to SAR 5.1 million in the year-earlier period.  

The food products manufacturer attributed the losses to lower domestic sales, and higher average stock prices of raw materials. Moreover, its subsidiary in Egypt was affected due to the decline in currency exchange rate, which was offset by an increase in the subsidiary’s sales.

Halwani also widened the third-quarter net loss to SAR 42.5 million from SAR 22.97 million in the year-earlier period, due to lower local sales and higher selling and distribution expenses.

The losses increased by 42.8% quarter-on-quarter (QoQ) from SAR 29.76 million in Q2 2023.

The YoY deeper loss in Q3 2023 was due to the drop witnessed in the company’s sales inside the Kingdom, amid an increase in average stock prices of raw materials, not to mention the higher YoY selling and distribution expenses during the current quarter, on wider range of promotional campaigns.

Moreover, the loss was escalated by financing costs, mainly due to higher interest rates.

The loss came despite an increase in the subsidiary’s sales in Egyptian pounds in Egypt, noting that the Egyptian currency exchange rate drop affected the company’s financial performance.

Meanwhile, the company attributed the QoQ loss to higher selling and distribution expenses, as a result of the increase in promotional campaigns.

Shareholders’ equity, no minority interest, declined to SAR 335.9 million as of Sept. 30, 2023, from SAR 455.7 million a year earlier.

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