Saudi foodservice company Herfy posts 73% drop in profit for 2020

Saudi foodservice company Herfy posted a 72.64% drop in preliminary net profit for 2020 to 53.56 million riyals ($14.28 million) compared to 196.01 million riyals in 2019.

The company said in a bourse filing on Thursday (Jan 21) that it was hit by its second-quarter performance when COVID-19 restrictions were in full force. This included the closure of its restaurants in commercial centres, the limitation of service in others, and the increase in general and administrative expenses.

Herfy made a loss of 34.24 million riyals in the second quarter when sales plunged 45%.

The company’s profits in the other three quarters helped pull it out of the red for 2020.

Sales were down 16.6% for the full year 2020 to 1.07 billion riyals compared to 1.3 billion riyals in 2019.

Herfy operates its fast food restaurants as well as bakeries. It also has a meat processing business line.

© SalaamGateway.com 2021 All Rights Reserved