Riyadh – Mubasher: Halwani Bros Company reported a 94.46% year-on-year decline in its net profits during 2019, dragged by higher cost of sales and expenses.
The Saudi firm’s net profits after Zakat and taxes slid to SAR 2.4 million last year from SAR 43.3 million in 2018, according to a bourse statement on Monday.
Meanwhile, revenues went down by 6.27% to SAR 899.9 million in 2019, compared to SAR 846.8 million in the previous year.
The profit slide was ascribed to increased sales discounts in Saudi Arabia and Egypt and higher cost of sales in the two countries due to a rise in prices of raw materials.
In addition, increased general and administrative expenses as well as sales and distribution expenses weighed on the company’s profits during 2019.
It is noteworthy to mention that during the first nine months of 2019, the Saudi firm turned to net losses of SAR 1.6 million, versus profits of SAR 44.2 million in the corresponding period of 2018.
