Halwani Brothers Company announced that the company has shifted to recording a loss in the second quarter of this year at a value of 1.8 million riyals, compared to a profit of 26.2 million riyals in the same quarter of the previous year.
The company said in a statement on “Saudi Tadawul”, today, Sunday, that the loss comes due to… Decreased total profit of the company By 26% during the current quarter compared to the same quarter of the previous year.
The company pointed to the rise in the prices of raw materials costs, within the global inflation, which had an impact on most companies.
The company’s consolidated profits were also affected by the depreciation of the currency exchange rate of the subsidiary in Egypt.
Marketing campaigns for customers and consumers also led to an increase in spending during the second quarter compared to the same quarter of the previous year.
The company stated that it was also affected by the high cost of financing after the interest rate hike by the Saudi Central Bank.
The company’s profits decreased by 65.3% in the first half of this year to 17.9 million riyals, compared to 51.6 million riyals in the same half of the previous year.