Halwani Bros. Co. — Interim / Quarterly Report 2016

Apr 17, 2016

Halwani Bros. Co. announces the interim financial results for the period ending on 31-03-2016 (Three Months)

6001 · 17/04/2016 08:01:23 · Announcement #42077 · View on Saudi Exchange

Halwani Bros. Co. announces the interim financial results for the period ending on 31-03-2016 (Three Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	13.9	25.9	-	38.7	-
Gross profit (loss)	91.2	85.4	6.79	83.2	9.62
Operational profit (loss)	40.5	39.1	3.58	37.2	8.87
Earning or loss per share, Riyals	0.49	0.91	-	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year	(Decrease) in net profit compared to same quarter in previous year is derived from the impact of Egyptian Pound devaluation versus US dollar in subsidiary company in addition to the impact of devaluation on Divedend distribution in subsidiary which was not distributed till date. this is despite the non-recurring profit of 2.3 Million Saudi riyals from insurance amount in 1st quarter related to Boiler crash in 2014 in addition to not build inventory provision for this quarter given it is not needed
Reasons of increase (decrease) for quarter compared with previous quarter	(Decrease) in net profit is derived from the impact of Egyptian Pound devaluation versus US dollar in subsidiary company based on the decision of the central bank of Egypt to decrease the egyptian pound to USD by 14% dated the 14th of March , in addition to the impact of devaluation on devidend distribution in subsidiary which was not distributed till date. This is despite the increase in sales with 278 Million Riyal versus 262.7 Million Riyal in previous quarter leading to increase in gross profit yet gross profit increased due to decrease in cost of some key raw materials as gross profit. Also the impact of insurance claim from company losses due to boiler crash in 2014 in increasing profit
Other notes	The subsidiary company in Egypt enforces a price increase on its products to compensate for the cost differences from the devaluation of Egyptian pound versus US dollar. The improvement in operating profits is derived from the decrease in cost of sales resulted from the decrease in price of some key raw materials despite the depreciation of production lines of the new industrial complex that was constructed in the new industrial city in Jeddah

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