Saudi: Savola Group revenue hits $3.7bln in H1; net profit up 8.3%

Saudi: Savola Group revenue hits $3.7bln in H1; net profit up 8.3%

Saudi food conglomerate Savola Group has reported revenues of SR13.9 billion ($3.7 billion) for the first half of the year compared to SR14.4 billion ($3.8 billion) last year, thus registering a 3.3% decline.

However, its net profit for the six-month period ended June 30, 2023 surged to hit SR525 million, up 8.3% over last year's figure of SR485 million.

Announcing the financial results for H1, Savola said the drop in the revenue was primarily due to Ramadan advancement in Q1 2023 by 10 days in addition to the revenues of Food Processing segment that were impacted by lower crude edible oil prices as well as disposal of investment in Savola Morocco Company and temporary suspension of operations in Republic of Sudan.

Savola said the growth in the net profit was mainly driven by an increase in gross profit of the Food Processing and Retail segments; capital gain amounting to SR18.5 million on the disposal of investment in Savola Morocco Company; and total refund of custom duty from regulatory authority in KSA having a net impact of SR23.3 million.

The Saudi group said it was able to achieve net profit growth in H1 despite higher operating expenses; net finance costs and higher zakat and income