Riyadh – Mubasher: The initial financial statement of Halwani Bros Company showed a 66.7% year-on-year decline in profits during the first quarter of 2019.

Net profits, after zakat and tax, stood at SAR 5.5 million in Q1-19, compared to SAR 16.5 million in Q1-18, according to a filing to the Saudi Stock Exchange (Tadawul) on Tuesday.

Total Comprehensive Income of the Saudi-based company fell by 54.11% to SAR 7.8 million in Q1-19, versus SAR 17 million in the same period of the prior year.

The decrease in Q1-19 profit was ascribed to an increase in the cost of goods sold in the company in Saudi Arabia on the back of the price hikes of raw material.

The increase in sales and distribution expenses in Egypt due to the restructure in the sales department also led to a drop in the company’s profits.

Halwani Bros started implementing IFRS 16 from January, which led to an increase in general and admin expenses