Riyadh – Mubasher: Saudi Arabia-based Halwani Bros Co on Wednesday reported a 2.1% year-on-year hike in net profits after calculating Zakat Tax during the third quarter of 2018, pushed by strong sales.

Halwani Bros’ net profits amounted to SAR 19.2 million ($5.12 million) in Q3-18, compared to SAR 18.8 million ($5.01 million) during Q3-17, according to a statement to the Saudi Stock Exchange (Tadawul).

The firm attributed the third-quarter profit growth to a rise in the value of net sales and gross profits in Egypt’s subsidiary.

Revenues inched up 0.63% to SAR 223.4 million in Q3-18, compared to SAR 222 million during the year-ago period.

Operational profits also increased by 3.1% to SAR 29.7 million from July to September, versus SAR 28.8 million in the same three months last year.

Quarter-on-quarter, the Saudi firm’s profits soared 125.8% during the three-month period ended September, from SAR 8.5 million.

In the first nine months of 2018, Halwani Bros’ net profits after calculating Zakat and Tax slid 13.8% to SAR 44.2 million, from SAR 51.3 million in the year-ago period.

The Saudi food provider ascribed the nine-month profit decline to a rise in sales’ cost in the Kingdom, along with higher discounts in the Kingdom and Egypt, and distributing and sales expenses went up.

Sales rose 4.7% to SAR 647.1 million from January to September, against SAR 617.8 million in the corresponding period a year earlier.

Year-on-year, operational profits tumbled 10.9% to SAR 70.8 million by the end of September, compared to SAR 79.5 million. 

Halwani Bros’ decreased 1.72% to close Tuesday's trading session at SAR 46.