Today, Sunday, Halawani Brothers announced its annual financial results for 2020, achieving a 4100% jump in net profits.
The company said, in a statement to the Saudi Stock Exchange, Tadawul, that the net profit amounted to 100.8 million riyals last year, compared to 2.4 million riyals in 2019, raising profits by 42 times.
The reasons for the increase in the net profits of the current year compared to the previous year are due to the growth in the company’s sales in the local and international markets as a result of the success of the marketing and sales policies that were applied during the year, and the modernization of the discounts and incentives system for customers in order to achieve the highest profitability of the company and increase the market share.
The company’s revenues increased 17% to 1.055 billion riyals last year, compared to 899.9 million riyals in 2019.
The company attributed the profit growth to the restructuring of the products and the sales mix of the company in line with the desires of consumers and the improvement of the profit margin, and the improvement in the gross profit margin as a result of obtaining competitive prices for purchases and increasing the efficiency and effectiveness of supply chains, and the decrease in financing expenses due to the decrease in total loans by an amount 105 million riyals, as well as the low cost of borrowing.