Halwani Brothers records losses of 98 million riyals by the end of 2023… and fourth-quarter losses of 27.4 million riyals

Halwani Brothers Company registered, 56% owned by “Asir” Company. Losses amounting to 98 million riyals by the end of 2023, compared to profits 2.9 One million riyals was achieved during the same period in 2022.

The company said that the reason for recording losses during the current period compared to profits for the similar period of the previous year is due to:

– Decrease in sales during this year compared to the previous year due to:

1) Decrease in the company’s sales in the Kingdom of Saudi Arabia.

2) The consolidated company’s sales in Saudi riyals decreased as a result of the decline in the Egyptian pound exchange rate despite the increase in the subsidiary’s sales in Egyptian pounds in the Arab Republic of Egypt.

3) The company in the Kingdom of Saudi Arabia incurs unusual one-time expenses as a result of changing sales policies with customers.

– A decrease in the company’s total profit during this year compared to the previous year as a result of the decrease in sales and the increase in average stock prices of raw materials.

– The consolidated company’s profits were affected by the decline in the currency exchange rate of the subsidiary in the Arab Republic of Egypt.

– The decrease in other revenues resulting from recording compensation for two plots of land owned by the company within the Jeddah Central Development Project during the previous year.

– Increase in general and administrative expenses during the current year compared to the previous year.

– Increased financing costs, mainly due to higher interest rates.

additional information:

The company also said that shareholders’ equity (no minority rights) at the end of the period amounted to 306.8 million riyals, compared to 433.7 One million riyals, as at the end of the similar period of the previous year.

Total comprehensive income for the current period amounted to (126.8) million riyals, compared to total comprehensive income of (65.5) One million Saudi riyals for the same period of the previous year.

Statement of the type of auditor’s report: Unmodified opinion

The comparative items, items and notes to the consolidated financial statements have been presented, compiled and classified to comply with the accounting policies applied for the current period, which were prepared in accordance with the International Financial Reporting Standards (IFRS) adopted in the Kingdom of Saudi Arabia. For more information, please refer to Note No. 37 (comparative numbers) in the consolidated financial statements for the period ending on December 31, 2023.

As a result of changing sales policies with customers in the Kingdom of Saudi Arabia, it is expected to have a positive impact as of the first quarter of 2024.

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