Savola achieves strong net profit for the H1

Savola achieves strong net profit for the H1
Savola achieves strong net profit for the H1

We show you our most important and recent visitors news details Savola achieves strong net profit for the H1 in the following article

Hind Al Soulia - Riyadh - JEDDAH — Savola Group — a leading strategic investment holding group in the food and retail sectors across the MENA region — announced its interim financial results for the 2nd Quarter and the period ended on 30-06-2020 (six months), which revealed that the net profit for the current quarter has significantly increased to SR409.6 million in comparison to SR110.2 million for the quarter ended June 30, 2019.

This rise represents an increase of 271.7%. This brings the net profit for the first half 2020 to SR582.3 million in comparison to SR116.6 million for the period ended 30 June 2019, which represents an increase of 399.4%. The results also achieved revenues of SR11.93 billion for the 1st half of 2020 compared to SR11.03 billion for the same period of last year (an increase of 8.2%).

The strong growth in the group’s profit is mainly attributed to the increase in the gross profit as a result of the higher sales and margins in retail and frozen foods sectors, and the higher share of profit from associates as well as lower operating expenses and net finance cost due to decrease in the financial charges on borrowings.

The net profit was achieved despite of the higher zakat and tax expense; and a non-recurring zakat and tax provision reversal relating to prior years assessments that was recorded in the period ended June 30, 2019.

In this regard Eng. Anees Ahmed Moumina, Savola Group CEO, highlighted “The strong results for this quarter and the six-month period ended 30 June 2020, were in line with our strategy and our commitment to the retail and food business, while simultaneously focusing on optimizing our asset allocation, and adapting our investment strategy to dynamic markets in Saudi Arabia and abroad.

“Our restructuring approach, which prioritized innovation while also focusing on group-wide cost rationalization and efficiencies, yielded excellent results last year and the current period. These achievements are accomplished while actively managing the risks and implications of coronavirus (COVID-19) and its impact on our operations in light of the local and worldwide market and economic conditions in the countries in which the group operates.”

These results further boost the status of the company, which this year was ranked as one of the top 100 companies in the Middle East by Forbes Middle East magazine, and it was ranked No. 14 in Saudi Arabia and No. 39 in Middle East in the same ranking.

Founded in 1979, Savola Group invests in the food and retail sectors across MENA. It operates Savola Food Company, which produces and exports everyday household products including oil, sugar, and pasta in more than 50 countries around the world.

It also invests in the retail sector, notably in the largest grocery store chain (Panda), with 205 stores in more than 42 cities across the Kingdom of Saudi Arabia and Egypt. Savola also owns a stake of 34.52% in Almarai dairy company and a stake of 51% in Alkabeer Group for frozen foods. Savola also owns the largest stake (49%) in Herfy Food Services Company, which manages 394 outlets. — SG

These were the details of the news Savola achieves strong net profit for the H1 for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Saudi Gazette and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT China’s factory activity expands at fastest clip in 13 months, Caixin PMI shows