Halwani Bros. Co. announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months )

1) Sales growth of the subsidiary in the Arab Republic of Egypt by approximately 4%, with sales rising from SAR 107.7 million to SAR 111.7 million. This was supported by price adjustments in line with local inflation rates, in addition to increased sales volume in the meat sector.

2) Sales growth in the Kingdom of Saudi Arabia by approximately 2%, with sales rising from SAR 131.7 million to SAR 133.9 million.

1) Revenue growth of approximately 3%, driven by the improved business performance of the company's key segments in both the Saudi and Egyptian markets.

2) One percentage point increase in gross profit margin, resulting from enhanced efficiency in production cost management and procurement.

3) A 45% decrease in finance costs, due to the improvement in the working capital cycle.

Conversely, results were partially impacted by foreign exchange losses of SAR 3.9 million (vs SAR 0.8 million in Q1 2025) and asset impairment losses of SAR 1.5 million.

1) A growth in the Company’s sales in the Kingdom of Saudi Arabia by approximately 20%, as sales rose from SAR 111.3 million to SAR 133.9 million.

2) A growth in the subsidiary’s sales in the Arab Republic of Egypt by approximately 2%, as sales rose from SAR 109.8 million to SAR 111.7 million.

First: Positive Factors (Supported Net Profit):

1) Improvement in Gross Profit by SAR 8.6 million (approx. 13%), as gross profit rose from SAR 65 million to SAR 73.6 million. This was driven by an 11% growth in revenue, alongside a 1% improvement in the gross profit margin.

2) Decrease in General and Administrative (G&A) expenses by SAR 5.9 million (-29%), dropping from SAR 20.5 million to SAR 14.7 million.

Second: Negative Factors (Impacted Net Profit):

1) Decrease in Other Income by SAR 6.2 million (-58%) compared to the previous quarter, as the Q4 2025 results included non-recurring items.

2) Increase in Selling and Distribution expenses by SAR 5.8 million (19%), resulting from the Company’s increased investment in restructuring sales channels to align with market requirements and corporate objectives, which contributed to the sales growth during the current quarter.

3) The results were impacted by net foreign exchange losses of SAR 4.2 million, shifting from an exchange gain of SAR 0.3 million in Q4 2025 to a loss of SAR 3.9 million in Q1 2026, due to the exchange rate fluctuations of the Egyptian Pound.