Halwani profit up 34% to SAR 15.4M in Q1 2026

Halwani Bros. Co. reported a net profit of SAR 15.4 million in Q1 2026, up from SAR 11.5 million a year earlier.

The annual increase was mainly driven by stronger performance in its Egypt subsidiary, where sales rose 4% YoY from SAR 107.7 million to SAR 111.7 million in Q1 2026, supported by price adjustments aligned with local inflation and higher volumes in the meat segment. Likewise, sales in Saudi Arabia also increased 2% YoY to SAR 133.9 million, compared with SAR 131.7 million in Q1 2025.

Gross profit margin improved by 1%, reflecting better efficiency in production and procurement costs. Financing costs declined 45%, supported by an improved working capital cycle.

However, results were partially weighed down by foreign exchange losses of SAR 3.9 million versus SAR 800,000 a year earlier, in addition to asset impairment losses of SAR 1.5 million.

Sequentially, net earnings declined 1.5% from SAR 15.65 million in Q4 2025.

The company said net profit declined compared with the previous quarter despite mixed operational improvements, as sales in Saudi Arabia rose 20% from SAR 111.3 million to SAR 133.9 million. Egypt sales increased 2% quarter-on-quarter (QoQ) from SAR 109.8 million to SAR 111.7 million, with gross profit rising SAR 8.6 million, or 13%, to SAR 73.6 million, supported by 11% revenue growth and a 1% improvement in margin in Q1 2026.

General and administrative (G&A) expenses fell SAR 5.9 million, or 29% QoQ, to SAR 14.7 million, reflecting cost optimization efforts.

This was offset by a 58% YoY drop in other income to SAR 6.2 million due to non-recurring items in the prior quarter, alongside a 19% increase in selling and distribution expenses to SAR 5.8 million, driven by investments in restructuring sales channels.

The quarterly performance was also impacted by foreign exchange losses of SAR 3.9 million, compared with gains of SAR 300,000 in the previous quarter, reflecting volatility in the Egyptian pound.

Shareholders’ equity, no minority interest and after excluding sukuk, rose to SAR 348.08 million as of March 31, 2026, from SAR 301.48 million in the year-ago period.

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