Riyadh – Mubasher: Halwani Bros Co announced that its operations in Egypt, managed by its subsidiary (Halwani Bros – Egypt), which is fully owned by the company, will be impacted negatively due to the floatation of Egyptian Pound.
“The expected financial impact of that said floatation will negatively affect the fourth quarter 2016 consolidated net profit of the company by SAR 28 million approximately,” according to a bourse filing.
The company noted that the estimated losses were calculated based on the government floated rate range that was officially announced.
Moreover, Halawani said that it has taken a number of measures, over the year that have significantly decreased the negative impact resulting from the devaluation of the Egyptian pound (EGP) against foreign currencies.
Halwani’s profits a decrease of 17.88% to SAR 22.5 million in the third quarter of 2016 as compared to SAR 27.4 million in Q3-15.
The Central Bank of Egypt (CBE) decided on 3 November to float the EGP freely against the foreign currencies and leave it to the supply and demand mechanisms.
