Savola H1 2023 net profit up 8% to SAR 524.8; Q2 down to SAR 132 mln

Savola Group posted an 8% rise in net profit in H1 2023, reaching SAR 524.8 million, compared to SAR 484.6 million in H1 2022. 

The group reported revenues of SAR 13.9 billion during H1 2023 compared to SAR 14.3 billion for H1 2022, a 3.3% decrease.

The positive performance was driven by higher gross profit in the food processing and retail segments.

In addition, the company achieved a capital gain of SAR 18.5 million resulting from selling an investment in Savola Morocco.

The profit rise was also attributed to the refund of SAR 23.3 million in customs fees from the Zakat, Tax and Customs Authority (ZATCA).

This came despite higher operating expenses (OpEx), net finance costs, and Zakat and income tax expenses. 

In Q2 2023, the company’s net profit fell 38.2% to SAR 132.00 million from SAR 213.75 million in the prior year period. The edible oil producer reported a lower profit share from associates. Higher finance costs, OpEx as well as Zakat and income tax expenses weighed on the second-quarter results. 

Sequentially, the Saudi-listed firm’s profit dropped 66.4% from SAR 392.7 million in Q1 2023 due to the lower gross profit of the food processing segment and higher OpEx. 

Total shareholders' equity, excluding minority interest, reached SAR 8.19 billion as of June 30, 2023, compared to SAR 8.25 billion in the prior-year period. 

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