Riyadh – Mubasher: Saudi Arabia-based Halwani Bros on Sunday reported a 23.31% year-on-year drop in its net profits for the first half of 2018.

Net profit stood at SAR 25 million in the six-month period ended June, versus SAR 32.6 million in H1-17, according to a filing to the Saudi Stock Exchange (Tadawul).

Earnings per share amounted to SAR 0.87 in H1-18, from SAR 1.14 in the year-ago period.

The Saudi food provider attributed the decline in H1-18 profit to the increase in costs of sold goods after a growth in raw materials prices, as well as the increase in the cost of goods sold in the company in Egypt.

Moreover, increased discounts and higher sales and distribution expenses in both Saudi Arabia and Egypt have also impacted the company’s interim profits.

In the second quarter of 2018, Halwani’s profits fell by 29.75% year-on-year to SAR 8.5 million, from SAR 12.1 million.

Sales of the Tadawul-listed firm rose by 6.6% to SAR 204.9 million at the end of June, versus SAR 192.3 million in Q2-17.

Operational profit retreated by 22.71% to SAR 16 million at the three-month ended June, compared to SAR 20.7 million in the prior-year period.

Halwani Bros previously posted a 19.12% year-on-year decline in net profit for Q1-18, recording SAR 16.5 million from SAR 20.4 million in Q1-17.