Shares of Saudi Herfy Food chain in red after profits decline 38% on lower sales

RIYADH: Saudi Herfy Food Services Co.’s profit dropped 38 percent to SR70 million (19 million) during the first nine months of the year, pushing its stock down.

Shares of Herfy declined 2.80 percent on Wednesday to reach SR38.20.

The decline in profit stems from the intense competition that led to a drop in sales by 6 percent, as well as an increase in operating costs and marketing expenses.

Herfy’s third-quarter profits fell by 65 percent to SR21 million as sales decreased by 12 percent.