Savola profit soars to SAR 9.97B in 2024; Q4 at SAR 9.3B on one-offs

Savola Group’s net profit surged to SAR 9.97 billion for 2024, compared to SAR 899.2 million in 2023.

Savola reported revenue of SAR 24 billion for 2024, largely stable compared to SAR 24.1 billion in the prior year. This reflected the strong performance of the retail and frozen food segments, where the topline grew by 3% and 6%, respectively, offsetting the impact of lower revenue in the food processing segment due to lower commodity prices and divestment of Savola Morocco Co.

The growth in the retail segment was primarily driven by the favorable impact of the CXR program and an expanded store footprint. Meanwhile, the food processing segment faced a 4% revenue decline due to lower crude edible oil prices, foreign exchange devaluation in certain overseas markets, and the divestment of Savola Morocco.

In line with International Financial Reporting Standards (IFRS), revenue was recorded, excluding the results of divested businesses in Iran and discontinued operations in Sudan.

Additionally, the profit increase was spurred by Savola distributing its entire 34.52% stake in Almarai Co. to eligible shareholders, resulting in a net gain of SAR 11.3 billion.

Savola reported one-offs from the food processing segment in Q3 2024, related to a custom duty refund from the regulatory authority in Saudi Arabia, with a net impact of SAR 19.4 million.

Additionally, the company cited higher profit share from associates.

The profit increase was offset by lower net profit from the food processing segment, net asset impairment charges of SAR 79.6 million in 2024 for certain non-current assets, higher operating expenses, higher net finance costs and higher Zakat and income tax expenses.

Q4 2024 earnings soared to SAR 9.3 billion, compared to SAR 227.05 million in the year-earlier period.

On a quarterly basis, Savola witnessed a net profit hike from SAR 181.02 million in Q3 2024.

Total shareholders’ equity, after minority interest, stood at SAR 4.6 billion by Dec. 31, 2024, compared to SAR 83.9 billion a year earlier.

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