Herfy mulling further expansion in Asia, says CFO

Herfy Food Services Co. (Herfy Foods) has received, and is assessing, several requests to increase its franchises in Asia, chief financial officer Saleh Al-Fadhel told CNBC Arabia.

The fast-food chain saw an increase in its net income in the third quarter, which Al-Fadhel attributed to effective cost reduction and expense controls.

The company’s revenue grew across its operating segments, including bakery, meats and restaurants, while sales were propped up by the opening of new outlets locally.

Its operating cash flow reached SAR 278.9 million for the first nine months of 2018, compared to SAR 225.9 million in the same period a year earlier.

Al-Fadhel said higher utility costs had a proportionate impact on the business, but the company’s leverage position has improved as of last January, with debt standing at SAR 60 million.

The company is mulling the feasibility of opening new franchises abroad, including in Bangladesh, where the company’s franchisee is seeking expansion.