Halwani Bros. Co. — Earnings Release 2012

Jul 15, 2012

HALWANI BROTHERS COMPANY ANNOUNCES ITS CLOSING ESTIMATE FINANCIAL RESULTS FOR THE PERIOD ENDED 30/06/2012 (6 MONTHS)

6001 · 15/07/2012 09:21:05 · Announcement #26405 · View on Saudi Exchange

HALWANI BROTHERS COMPANY ANNOUNCES ITS CLOSING ESTIMATE FINANCIAL RESULTS FOR THE PERIOD ENDED 30/06/2012 (6 MONTHS)

HALWANI BROTHERS COMPANY ANNOUNCES ITS CLOSING ESTIMATE FINANCIAL RESULTS FOR THE PERIOD ENDED 30/06/2012 (6 MONTHS) AS FOLLOWS:

1-The business achieved net income in the second quarter 2012 of SR 22.8 M compared to SR 23.4 M same quarter previous year with decline of 2.6 % and compared to SR 18.1M in the first quarter 2012 with a growth of 26 %

2-Gross profit achieved in the second quarter 2012 SR 68.5M compared to SR 66.4M same quarter previous year with growth of 3.2%

3-Operating profit achieved in the second quarter 2012 SR 30.7 M compared to SR 29.5M same quarter previous year with growth of 4.1%.

4-The business achieved net income for the six months ended 30/06/2012 of SR 40.9M compared to SR 45M same period previous year with decline of 9.1%.

5- Earnings per share for six months ended 30/06/2012 is SR 1.43 compared to SR 1.58 for the same period previous year

6-Gross profit achieved for the six months ended 30/06/2012 is SR 135 M compared to SR 128.1 M same period previous year with growth of 5.4%.

7- Operating profit achieved for six months ended 30/06/2012 is SR 56.7 M compared to SR 56.1 M same periods previous year with growth of 1.1%

8-The main drivers for net income decline of the first half of year 2012 compared to the same period previous year are; due to the first phase operating start of the new complex in the industrial city in Saudi Arabia in Jeddah, the expansion of factory meat in Arab Republic of Egypt which resulted in high costs of depreciation, in addition to the decline of the Egyptian pound against the Saudi riyal , higher marketing support activities in Egypt, increase in 2011 dividends distribution from Halwani Egypt to Halwani Saudi Arabia, that resulted in increasing the expenses of employees exceptional profit sharing, which did not take place in the same quarter last year, otherwise the company maintained its consumer pricing in Saudi Arabia during the period and the main driver growth for profit for the second quarter 2012 compared to first quarter of 2012 are the sales growth and decline the marketing support activities in quarter.

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