Savola profit plunges 76% to SAR 221.9 mln in 2021; Q4 loss at SAR 254.4 mln

Savola Group reported a net profit after Zakat and tax of SAR 221.9 million for 2021, a plunge of 76% from SAR 910.8 million a year earlier.

The profit fall was attributed to higher impairment losses, lower profit share from associates, as well as higher Zakat and tax expenses.

Moreover, the company reversed a Zakat and tax provision in 2020.

In Q4 2021, the edible oil producer turned to a net loss after Zakat and tax of SAR 254.4 million against a net profit of SAR 44.7 million. Savola reported one-off (non-cash) charges of SAR 363 million and SAR 58.8 million in retail and food processing segments, respectively, due to an impairment assessment of certain right of use assets, property and equipment and investment in associates, in accordance with the IFRS requirements.

It also reported higher Zakat and income tax expenses, along with a decline in its profit share from associates.

The fourth-quarter net profit before impairment loss would have reached SAR 139 million versus SAR 94 million during Q4 2020.

When compared to the previous quarter, Savola swung to losses against a net profit of SAR 122.4 million.

The fourth-quarter net profit before impairment loss would have reached SAR 139 million versus SAR 122 million during Q4 2020.

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