Halwani Brothers, one of the leading companies in the Saudi Arabian food industry, announced a net profit of approximately SAR 42.6 million for the fiscal year 2025, marking a 5% decrease compared to the previous year. This decline comes amidst a number of challenges the company faced both locally and regionally.
According to the official statement published by the company on the Saudi Stock Exchange (Tadawul), the main reasons behind the decline in profits are due to several contributing factors. The first is a decrease in the company's consolidated sales , which may reflect a slowdown in demand or increased competition in the markets in which it operates. Additionally, the company experienced an increase in general and administrative expenses and selling and distribution expenses , indicating inflationary pressures on operating costs, including raw material costs, logistics, and wages.
General context and challenges in the Egyptian market
The company's operations in the Arab Republic of Egypt played a pivotal role in these results, with the statement noting an increase in financing expenses at the Egyptian subsidiary . This reflects the challenging economic environment in Egypt, characterized by high interest rates and exchange rate volatility, which increases borrowing and financing costs for companies operating there. The Egyptian market is a strategic one for Halwani Brothers, and any economic challenges there directly impact the company's consolidated financial performance.
A look at the company's history and importance
Founded in 1850, Halwani Brothers boasts a rich history spanning over a century and a half, making it a firmly established brand in the minds of consumers in Saudi Arabia and the region. The company began as a producer of halva and tahini, and its product portfolio has since expanded to include a wide range of food products such as canned goods, processed meats, and cheeses. Its financial performance is not only an indicator of its internal health but is also seen as a reflection of the state of the consumer goods sector in the Kingdom and the ability of Saudi companies to adapt to regional economic changes.
Expected impact and future outlook
Investors and analysts are expected to closely monitor the steps the company's management takes to address these challenges. Future strategies may include cost-cutting programs, improved operational efficiency, a reassessment of pricing and sales strategies, and exploring ways to manage the financial risks associated with its operations in Egypt. This financial report demonstrates that large companies with a regional presence are not immune to macroeconomic conditions, highlighting the importance of resilience and strategic planning to navigate market volatility.
