Halwani Bros’ Q3 2017 net profit was affected by lower sales in Egypt due to pound depreciation, Saleh Hefni, the company's managing director and chief executive, told Argaam on Monday.
The company hiked product prices in Egypt by 50-70 percent to cover the increase in costs of dollar-denominated raw materials.
Halawni’s profit from its Egyptian unit accounts for over 60 percent of the parent company’s consolidated income.
The food producer’s EGP-denominated sales recorded reasonable growth amid higher product prices, and the company plans to continue to boost its sales in the Egyptian market.
“As we know, the Egyptian pound was floated in early November 2016, but the exchange rate has stabilized for six months, which in turn reassures investors,” Hefni said.
Speaking about future expansions, the chief executive said that Halwani is still seeking suitable investment opportunities in the Saudi and Gulf markets, in line with its business strategy.
The firm is eying acquisitions in food production, meat processing, and bakery activities.
“Several opportunities have been offered to us this year, but no mandatory or non-mandatory offers were submitted,” Hefni concluded.
Halwani’s net profit for the third quarter fell 16 percent year-on-year to SAR 18.8 million.
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