Saudi food co Herfy profit down 11 pct Q2 2019 on higher expenses

Herfy Food Services Co.'s net profit plunged 10.96 per cent to 40.86 million Saudi riyals ($10.9 million) for the three months ending June 30 compared to the same period last year.

The Saudi fast-food restaurant chain attributed the drop to higher expenses in several areas, including selling and marketing, general and administration matters, and finance cost due to implementation of rent contracts, it said in a bourse filing on Monday.

Herfy’s net profit dipped even as its revenue grew by 7.92 per cent to 309.31 million riyals for Q2.

For the first six months of 2018, the company’s net profit after zakat and tax decreased by 5.05 per cent to 88.9 million riyals compared to the same period last year.

It attributed the H1 profit drop to the same factors that hit its Q2 results.

Herfy is 49 per cent owned by Saudi investment holding group Savola.

($1 = 3.75 Saudi riyals)

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