Savola profit jumps 21% to SAR 899.2M in 2023; Q4 at SAR 227.1M

Savola Group reported a net profit rise of 21% to SAR 899.2 million in 2023 from SAR 742.8 million in 2022.

The annual growth was propelled by an increase in the gross profit of the food processing, retail and frozen foods segments, and Savola’s higher profit share from associates.

The edible oil producer reported a net impairment reversal of SAR 111.9 million in Q4 2023 for certain non-current assets mainly in the foods processing and retail segments.

It also recorded a refund of customs duties from the Zakat, Tax and Customs Authority (ZATCA), which implies a net impact of SAR 23.3 million.

On the other hand, revenue declined 4% year-on-year (YoY), mainly due to lower top line from the food processing segment and a drop in crude edible oil prices.

Savola recorded a capital gain of SAR 18.7 million on disposal of investments/operations last year, which is lower than the capital gain of SAR 41.8 million in 2022. It also reported higher net finance cost, operating expenses as well as Zakat and income tax expenses

The fourth-quarter net earnings more than doubled year-on-year (YoY) to SAR 227.1 million from SAR 94.47 million in Q4 2022, thanks to higher gross profit of the foods processing, retail and frozen foods segments, lower operating expenses and higher profit share from associates.

Compared to Q3 2023, Savola’s net profit jumped 54.1% from SAR 147.36 million as revenue rose by 4% quarter-on-quarter (QoQ). The foods processing, retail and frozen foods segments reported an increase in gross profit. Additionally, Savola reported a higher profit share from associates and a decline in Zakat and income tax expenses.

Total shareholders’ equity, after minority interest, stood at SAR 8.44 billion as of Dec. 31, 2023, compared to SAR 8.25 billion in the prior-year period.

View More Financial Results