Halwani Bros. Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

Halwani Bros. Co. reported a substantial 370.1% year-on-year increase in net profit to SAR 11.47 million for Q2 2026, while its six-month net profit rose 92.8% to SAR 26.88 million, driving earnings per share up to SAR 0.76 from SAR 0.39.
Quarterly revenue remained nearly flat at SAR 212 million (-0.88% YoY) as growth in core Saudi and Egyptian markets was offset by declining export sales; sequentially, revenue and profit dipped from Q1 due to seasonal demand fluctuations.
Profitability was significantly enhanced by a one-percentage-point expansion in gross profit margins, attributed to improved operational efficiency and lower raw material costs, coupled with a 35% reduction in quarterly financing expenses due to an optimized working capital cycle.
The bottom line also benefited from the recording of other income via the reversal of provisions and a SAR 1.3 million foreign currency exchange gain at the Egyptian subsidiary, reversing a SAR 0.7 million loss in the prior year's comparable quarter.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	212.01	213.9	-0.883	245.47	-13.63
Gross Profit (Loss)	58.86	58.13	1.255	73.57	-19.994
Operational Profit (Loss)	18.61	13.88	34.077	25.82	-27.924
Net Profit (Loss) Attributable to Shareholders of the Issuer	11.47	2.44	370.081	15.41	-25.567
Total Comprehensive Income Attributable to Shareholders of the Issuer	13.47	2.99	350.501	12.24	10.049
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	457.48	451.66	1.288
Gross Profit (Loss)	132.43	127.67	3.728
Operational Profit (Loss)	44.43	38.43	15.612
Net Profit (Loss) Attributable to Shareholders of the Issuer	26.88	13.94	92.826
Total Comprehensive Income Attributable to Shareholders of the Issuer	25.71	14.87	72.898
Total Shareholders Equity (after Deducting Minority Equity)	361.55	304.47	18.747
Profit (Loss) per Share	0.76	0.39
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	A slight decline of 1% in the consolidated company's sales, resulting from the decrease in export sector sales, while maintaining the sales levels of the company's main sectors in both the Saudi and Egyptian markets.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The increase in net profit during the current quarter compared to the same quarter of the previous year is due to the following: 1) Gross profit margin increased by one percentage point, as a result of improved operational efficiency and lower cost of raw material purchases. 2) Financing expenses decreased by approximately 35%, due to the improvement in the working capital cycle. 3) Recording of other income resulting from the reversal of provisions that are no longer needed. 4) Recording of foreign currency exchange gains resulting from the improved exchange rate at the subsidiary in the Arab Republic of Egypt, which amounted to SAR 1.3 million (compared to losses of approximately SAR 0.7 million in the second quarter of 2025).
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The company achieved sales during the current quarter of SAR 212.1 million, a decrease of approximately SAR 33.46 million compared to the previous quarter, as a result of the consolidated company's sales being affected by the seasonal nature of demand during the period.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The company achieved a net profit during the current quarter of SAR 11.4 million, a decrease of approximately SAR 3.9 million compared to the previous quarter, as a result of the consolidated company's sales being affected by the seasonal nature of demand during the period.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The company achieved an increase in sales of approximately 1.3% during the current period compared to the same period of the previous year, due to the growth in the company's sales in the main sectors in the Saudi and Egyptian markets.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The increase in net profit during the current period compared to the same period of the previous year is due to: 1) Gross profit margin increased by one percentage point, as a result of improved operational efficiency and lower cost of raw material purchases. 2) Recording of other income resulting from the reversal of provisions that are no longer needed. 3) Financing expenses decreased by approximately 39%, due to the improvement in the working capital cycle.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	None
Reclassification of Comparison Items	For further information, please refer to Note No. 2.1 in the notes accompanying the consolidated financial statements for the six-month period ended June 30, 2026.
Additional Information	None