On 2026-07-29 15:42:26 (Saudi Time), Halwani Bros. Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending June 30, 2026, Halwani Bros. Co. reported a modest 1.288% YoY increase in consolidated sales/revenue to SAR 457.48 million (vs. SAR 451.66 million), driven by growth in the company's main sectors in both the Saudi and Egyptian markets. Net profit attributable to shareholders surged 92.826% YoY to SAR 26.88 million (vs. SAR 13.94 million), primarily due to a one-percentage-point improvement in gross profit margin resulting from enhanced operational efficiency and lower raw material costs, the recording of other income from the reversal of no-longer-needed provisions, and a approximately 39% reduction in financing expenses attributable to an improved working capital cycle.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 13.63% to SAR 212.01 million (vs. SAR 245.47 million in the prior quarter), driven primarily by the seasonal nature of demand affecting consolidated sales during the period. Net profit attributable to shareholders fell 25.567% QoQ to SAR 11.47 million (from SAR 15.41 million), also attributable to the same seasonal softness in demand, which compressed both gross profit (down 19.994% QoQ to SAR 58.86 million) and operating profit (down 27.924% QoQ to SAR 18.61 million).

Other Items

The external auditor issued an unmodified conclusion with no additional comments, reservations, or other matters noted. For the current quarter compared to the same quarter of the prior year, net profit attributable to shareholders rose 370.081% to SAR 11.47 million (vs. SAR 2.44 million), supported by a one-percentage-point improvement in gross profit margin from enhanced operational efficiency and lower raw material costs, a approximately 35% decrease in financing expenses due to an improved working capital cycle, the reversal of no-longer-needed provisions recorded as other income, and foreign currency exchange gains of SAR 1.3 million at the Egyptian subsidiary (compared to losses of approximately SAR 0.7 million in Q2 2025). Total comprehensive income attributable to shareholders for the current quarter was SAR 13.47 million (vs. SAR 2.99 million in the same quarter of the prior year), and for the six-month period was SAR 25.71 million (vs. SAR 14.87 million). Total shareholders' equity (after deducting minority equity) stood at SAR 361.55 million as of the current period end, up 18.747% from SAR 304.47 million in the same period of the prior year. Earnings per share for the six-month period were SAR 0.76 (vs. SAR 0.39). No material risks, going concern uncertainties, accumulated losses, or debt covenant breaches were disclosed.

Original announcement:

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