Halwani Bros. still facing challenges in Egypt, Saudi Arabia: CEO

Halwani Bros. Co. still has several challenges to overcome locally and in its Egypt’s unit, chief executive officer, Saleh Ahmed Hefni, told CNBC Arabia, adding that the company had to secure loans to fulfill its financial liabilities over the previous period.

Halwani was planning to raise prices in the Egyptian market over the past two years, after the EGP currency devaluation. However, prices were increased gradually to eliminate a material impact on the sales volumes, Hefni stated.

Halwani is selling around 220 products in the Egyptian market at different prices, as pricing diversity reflected positively on profitability.

“Financing expenses increased over the previous period due to the economic pressures in the Kingdom, delayed dues’ collection and lower sales volumes in some regions,” Hefni noted. However, the third-quarter financials implied that Halwani managed to survive the increase in operating costs in both Egypt and Saudi units.

Although the company sources its needs through the year, which may pressure cash flows, it generates profit margins at faster pace compared to peers, the CEO added.

Halwani Bros. reported SAR 19.2 million profit in Q3 2018, edging up 2.1 YoY, driven by higher net sales and increased gross profit from Egypt’s unit on higher prices of products.