Saudi Arabian fast-food outlet Herfy Food Services Co has blamed intense competition and higher input costs for its Q2 2022 profits fall.

In its results published to the Saudi Stock Exchange (Tadawul) on Wednesday, Herfy reported profits of SAR 20.2 million ($5.4 million), down by 24% from SAR 26.7 million in Q2 2021, and down by 28.9% to SAR 28.4 million from Q1 2022.

Revenue for Q2 2022 was SAR 291.6 million, down by 9.2% from Q1 2021 and by 11.15% in Q1 2021.

The company cited intense competition, as well as an increase in the cost of sales, which was caused by the increase in the prices of operating supplies, as the reasons for the profit fall.

Net profit for the first half of 2022 was down year-on-year by 6.8% to SAR 48.6 million, while revenue fell by 2% to SAR 619.8 million, results showed.

(Writing by Imogen Lillywhite; editing by Brinda Darasha)

imogen.lillywhite@lseg.com