Saudi food company Herfy bounces back in third-quarter

Saudi foodservice company Herfy bounced back to profit for July through September after plunging into the red in the second-quarter.

The company posted net profit of 41.38 million riyals ($11.03 million) for the third-quarter from a loss of 34.24 million riyals for April to June, it reported in a bourse filing on Monday (Oct 26).

Its third-quarter sales increased by 83% to 311.12 million riyals, after managing only 170.1 million riyals for the previous three months.

Herfy’s bottom line this year has been hit by closures and limited service due to the COVID-19 pandemic.

Its third-quarter profit is 28% lower than for the same period last year. Due to pandemic-related restrictions, the company increased provisions for inventory slow moving to 8.4 million riyals and 6.5 million riyals for doubtful debts.

Herfy operates its fast food restaurants as well as bakeries. It also has a meat processing business line. The company reported a 3.96% drop in net profit for 2019 to 196.09 million riyals ($52.29 million) for the 12 months last year.

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