Halwani Bros turns to loss of SAR 5.1 mln in 9M 2022, Q3 loss at SAR 23 mln

Halwani Bros Co. swung to a net loss after Zakat and tax of SAR 5.1 million in the first nine months of 2022, against a net profit of SAR 65.7 million a year earlier.

The company's gross profit dropped 21% year-on-year (YoY) due to increased costs of raw materials and global inflation, which had an impact on most companies. Halwani also reported higher selling and distribution expenses in the current period, as it focused on expanding sales geographically through optimizing channels and restructuring sales force.

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

Higher general and administrative expenses, as well as financing cost also weighed on the nine-month results.

In Q3 2022, it also turned to a net loss after Zakat and tax of SAR 23 million versus a net profit of SAR 14 million in Q3 2021, on a 38% fall YoY in gross profit. The company was also hit by currency devaluation in Egypt, higher general and administrative expenses, as well as financing cost.

Compared to the previous quarter, the company widened net losses from SAR 1.80 million.

Shareholders’ equity, after minority interest, stood at SAR 455.7 million as of Sept. 30, 2022, down from SAR 552 million a year earlier.

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