Savola’s Q2 net profit falls below forecast, says Saudi Fransi Capital

Savola Group’s second-quarter net profit (SAR 434 million) fell six percent below Saudi Fransi Capital’s estimate and missed a consensus estimate by nine percent, the brokerage firm said in a report.

The investment arm of Banque Saudi Fransi maintained a “buy” rating on the stock and reduced its price target to SAR 86 from SAR 89.

On Tuesday, the Saudi food producer reported a 15 percent year-on-year drop in Q2-2015 net profit on lower net income and higher zakat and foreign income tax.