Savola stock 'under review' after cutting Q1 profit target in half: Al-Rajhi Capital

Savola Group was rated "under review" by Al-Rajhi Capital after the company cut its first quarter profit by 50 percent to SAR 178 million.

Savola revisited the prediction earlier this week on lower-than-expected sales from the retail sector and operational income from the food segment, as well as weakening of foreign currencies in its overseas operations.

Savola hasn’t changed its full-year profit guidance yet, prompting Al-Rajhi to keep the stock under review in anticipation of further information. 

The company's first quarter bottom line is expected to be boosted by the capital gain of SAR 265 million from the one-time sale of its plastics packaging unit to Takween Industries, according to the repot.