Halwani reports SAR 13.9M profit in H1 2025; Q2 at SAR 2.4M

Halwani Bros. Co. posted a net profit of SAR 13.9 million in H1 2025, up from SAR 10.8 million earnings in the year-earlier period.

The profit increase is attributed to higher other income from the reversal of unnecessary provisions and reduced general and administrative expenses.

This growth was achieved despite a decline in overall sales, mainly due to currency depreciation in Egypt and a slight decrease in sales in Saudi Arabia.

The profit decline in Q2 2025 compared to the year-ago period is primarily due to a slight 1% drop in consolidated sales, mainly driven by lower sales in Saudi Arabia.

Additional contributing factors included increased discounts and promotional offers by the company’s Egyptian subsidiary to maintain competitiveness amid currency fluctuations and broader economic changes.

Higher selling and distribution expenses related to marketing campaigns for new products also impacted profitability.

Compared to Q1 2025, the decline was mainly attributed to seasonal demand fluctuations and the absence of one-off other income recognized in the previous quarter from the reversal of provisions no longer required.

Q2 2025 net earnings plunged 84% to SAR 2.44 million from SAR 15.35 million a year ago.

On a sequential basis, net profit dropped 78.8% from SAR 11.51 million in Q1 2025.

Total shareholders’ equity, no minority interest, rose to SAR 304.47 million by the end of the current period, compared to SAR 258.33 million a year earlier.

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