Riyadh – Mubasher: Halwani Bros Co. reported a 39.3% year-on-year decline in net profits in 2018.

The Saudi food provider’s net profits, after zakat and taxes, retreated to SAR 43.3 million ($11.55 million) last year, compared to SAR 71.3 million ($19.01 million) in 2017, according to the company’s financial results on the Saudi Stock Exchange (Tadawul) on Sunday.

However, Halwani Bros’ revenues rose by 3.9% to SAR 867.4 million in 2018 from SAR 834.6 million a year earlier.

The profit decline was ascribed to several reasons including a rise in sales’ cost in the kingdom and Egypt due to increased prices of raw materials and fuel, along with higher discounts in the two countries and a retreat in export sales due to economic and political conditions in the region.

On the other hand, the Saudi firm's operating revenues grew by SAR 4.9 million in FY18 from re-evaluating provisions and insurance compensation.

During the fourth quarter of 2018, Halwani Bros’ reported SAR 900,000 in losses, against SAR 20 million in profits for the year-ago period.

Over the first nine months of 2018, the Saudi food provider’s net profits shed 13.8% to SAR 44.2 million from SAR 51.3 million in the corresponding period a year earlier.

By 12:15 pm Saudi time on Sunday, Halwani Bros’ stock fell 1.97% to SAR 44.70.