Halwani Brothers Company incurred losses of 23 million riyals in the third quarter of this year, compared to profits of 14 million riyals in the same quarter of 2021.
According to Arabiya Net, the company recorded an increase in losses by 1178% in the third quarter of 2022, compared to losses of 1.8 million riyals in the second quarter of 2022.
Halawani Brothers said in a statement that the turnaround in loss in the third quarter of 2022, on an annual basis, is due to several factors, including a decrease in the company’s total profit by 38% to 43.8 million riyals as a result of the decline in sales and the company’s impact on the high prices of raw materials costs within the global inflation that was It has an impact on most companies.
It is also due to the increase in selling and distribution expenses as a result of the company’s focus on the geographical expansion of sales by increasing sales channels and structuring the sales management team.
Halawani Brothers stated that, in light of global developments with high interest rates, the Saudi Central Bank raised the rate of repo agreements, which led to an increase in the cost of financing, in line with the goal of the Saudi Central Bank to maintain monetary and financial stability.
Halwani Brothers Company turned to a loss of about 5.1 million riyals in the first nine months of 2022, compared to a net profit of about 65.7 million riyals in the same period of 2021.
