Riyadh - Mubasher: Halwani Bros Company reported a net loss of SAR 15.73 million ($4.2 million) in the fourth quarter of 2016 against profits of SAR 38.7 million ($10.32 million) in the same quarter of the year before.
The losses is derived from the FX losses in subsidiary company from freeing the exchange rate of the Egyptian pound with an impact of SAR 57.9 million, the increase in sales and distribution expenses, and the increase in depreciation of fixed assets related to the new industrial complex in Jeddah after its full operation in beginning of July 2016 and the Chicken factory in the subsidiary company in Egypt.
In addition to reversing income tax in subsidiary company as a result of the realized FX losses and the increase in profit margin from the decrease in raw materials prices and the price increase on subsidiary company products, according to the company’s statement to the Saudi Stock Exchange (Tadawul).
Halwani also saw a decline in net profits by 54.8% to SAR 52.03 million in 2016 compared to SAR 115.11 million in 2015.
The decrease in profits is attributed to lower local and export sales, in addition to the impact of translation of subsidiary company sales.
