By Mohammed Idries
Riyadh-Mubasher: Saudi Arabia’s Herfy Food Services seeks to open more than 30 branches in 2016, said Khalid Al-Said, general manager-investment department, adding that his company opened 52 and 45 branches in 2014 and 2015, respectively.
He told Mubasher exclusively that the food services provider currently operates in Bahrain, Kuwait and the UAE, and seeks to foray into Qatar and Oman.
The company’s earnings dropped to SAR 202.6 million from SAR 205.8 million in 2015, mainly due to a fall in other revenues, Al-Said said, noting that Herfy generated revenues from selling a land plot for SAR 13 million in 2014. “When excluding this item, we will notice a rise in FY15 operating profits.”
Sales grew 18% to SAR 1.100 billion in 2015, compared with SAR 910 million a year earlier. This growth was driven by the restaurant segment which contributes 77% to annual sales and earnings, Al-Said said.
He added that the government’s decision to lift energy prices has a slight impact of SAR 10 million on Herfy, and thus it will continuously boost operating efficiency and lower costs.
Al-Said also said the decision to open the Saudi retail market to foreigners does not have a direct impact on the food services provider as most foreign companies have been operating in the local market 20 years ago. “Most of these firms invest in the Saudi market through franchise rather than direct investment.”
The loan raised by Herfy last year was aimed at financing expansions, Al-Said said, adding that his company will continue borrowing as long as there is an expansion opportunity.
“We hope to expand across the world especially as we offer quality services in line with global standards,” Al-Said said.
Translated by Abdul Maguid Aboshahla
