Halwani Bros, one of the Middle East’s largest food producers, is looking out for new acquisition opportunities locally or in the GCC, managing director & chief executive, Saleh Hefni, told Argaam in an exclusive interview.
“We have identified several sectors where there is potential for acquisition,” Hefni said.
The confectionery maker is also planning to introduce new products that meet customer tastes.
Hefni added that Q2 2017 financial results were hurt by lower sales in Egypt due to the negative impact of Egyptian pound after the exchange rate flotation. Also the company had booked one-off gains in Q2 2016.
Investment in Egypt was impacted by several economic factors, mainly volatility in exchange rates and shortage of foreign currency. The situation, however, has improved as the country’s foreign reserves jumped to $31 billion from $16 billion seven months earlier.
The current investment climate will encourage firms and allow them to pay dividends going forward,he said. Halwani’s board is keen to continue investments in the Egyptian market, Hefni said.
Meanwhile, Halawni’s sales across the Kingdom declined in the second quarter, as Ramadan fell in the same period.
“Ramadan usually weighs on the company’s products as our products are particularly not tailored for consumption in the holy month,” Hefni added.
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