Riyadh, Saudi Arabia — Halwani Bros. Co. reported a net profit of SAR 13.94 million for the first half of 2025, a 29.4% increase from SAR 10.77 million in the same period last year, according to financial statements published on Tadawul.

Cost Controls, One-Off Gains Offset Revenue and Margin Headwinds

The profit increase was mainly driven by other income—especially from reversed provisions—and reduced general and administrative expenses. However, revenue declined 6.6% year-on-year to SAR 451.66 million, weighed down by foreign exchange losses in Egypt and lower domestic sales in Saudi Arabia.

Gross profit dropped 13.1% to SAR 127.67 million, while operating profit fell 31.5% to SAR 38.43 million. These figures reflect weaker margins and a subdued sales environment across key markets.

In Q2 2025, net profit dropped sharply by 84.1% to SAR 2.44 million, down from SAR 15.35 million a year earlier. The company attributed this to aggressive discounting in Egypt, higher marketing expenses tied to new product launches, and seasonal demand softness.

Quarterly revenue decreased 0.9% year-on-year to SAR 213.9 million, while gross profit declined 13.7% to SAR 58.13 million. Total comprehensive income reached SAR 2.99 million—a 79.8% decline compared to Q2 2024.

Despite the Q2 setback, Halwani emphasized that the H1 performance reflected improved efficiency and a more favorable comparison against the FX-related losses recorded last year. Shareholders’ equity rose 17.9% year-on-year to SAR 304.47 million. Earnings per share improved to SAR 0.39, up from SAR 0.30.

What This Means for Investors

  • Profit supported by non-operational gains: EPS and net income rose, but largely due to one-offs.
  • Sales and margin pressure remain: FX volatility and pricing pressure continue to challenge operations.
  • Cost discipline softens the blow: Lower G&A expenses helped stabilize results.
  • Equity growth reflects resilience: The company’s balance sheet continues to strengthen despite short-term volatility.

 

THE SAUDI STANDARD’S VIEW: Halwani Bros. Delivers Profit Recovery Amid Regional and Sectoral Pressures

Halwani Bros.’ 29.4% H1 2025 profit growth to SAR 13.94 million demonstrates the company’s ability to adapt to currency instability in Egypt and soft demand in Saudi Arabia. Indeed, cost reductions and provision reversals played a central role in offsetting top-line pressure.

Although revenue fell 6.6%, Halwani’s internal efficiencies and financial management helped drive a year-on-year earnings improvement. However, the 84.1% Q2 profit decline reflects ongoing volatility tied to seasonal effects, marketing outlays, and aggressive pricing.

Still, the 17.9% increase in equity and improved earnings per share signal a stronger capital position, vital in navigating future disruptions. The company’s strategic focus on innovation and regional agility offers a path to margin recovery as conditions stabilize.

Halwani Bros.’ experience in this half reflects how Saudi food producers can protect profitability through sharp cost control and balance sheet strength. As Vision 2030 drives food sector localization and resilience, such performance becomes increasingly vital to the Kingdom’s consumer economy.

 

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