Herfy incurs SAR 8.3 mln loss in H1 2023, posts SAR 4.5 mln profit in Q2

Herfy Food Services Co. swung to a net loss of SAR 8.3 million in H1 2023 against a net profit of SAR 48 million in H1 2022, due to lower sales and increased cost of goods sold.

The company also reported higher selling and marketing expenses and Zakat charges, despite better other income, as well as lower general and administrative expenses (G&A), and finance costs.

The second-quarter net profit plunged 79% to SAR 4.5 million from SAR 21.2 million in the prior-year period on a drop in sales and higher cost of goods sold. Herfy reported an increase in G&A, as well as selling and marketing expenses along with a decline in other income.

The Kingdom’s largest fast-food chain turned profitable in Q2 from a net loss of SAR 12.8 million in Q1 2023, backed by better sales along with a decline in the cost of goods sold, as well as selling and marketing expenses.

Shareholders’ equity, no minority interest, declined to SAR 1.01 billion by the end of the six-month period, compared to SAR 1.09 billion a year earlier.

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