Savola H1 2024 profit at SAR 484.1M; Q2 up 3% to SAR 135.4M

Savola Group reported a net profit of SAR 484.1 million in the first half of 2024, compared to SAR 524.8 million in the year-earlier period.

The first-half net profit decline was attributed to decreased revenue in the food manufacturing sector from lower prices of raw edible oil, reduced sales volumes of edible oils, and foreign currency exchange losses in some external markets.

Additionally, the divestment from Savola Morocco and the temporary suspension of operations in Savola Sudan due to the ongoing conflict contributed to the decline. However, revenues in the retail, food services, and frozen food segments increased.

Net profit in the food manufacturing segment decreased by SAR 48 million, impacted by foreign currency exchange losses due to the depreciation of the Egyptian pound during Q1 2024, amounting to SAR 109 million.

The profit decline also reflected the impact of non-recurring revenues recorded in Q1 2023, which included capital gains of SAR 18.5 million from the exit from investment in Savola Morocco, and a recovery of customs fees from the Zakat, Tax and Customs Authority in Saudi Arabia, which had a net impact of SAR 23.3 million. Additionally, there were increased operating expenses and net financing costs.

The retail segment reported a net profit of SAR 39 million in the first six months of 2024 versus a net loss of SAR 37 million a year earlier, due to the positive impact of the customer experience improvement program (CXR).

The group’s share of profits from associated companies increased, while Zakat and income tax expenses decreased.

In Q2 2024, net earnings increased 3% to SAR 135.4 million, from SAR 132.03 million in the second quarter of 2023.

The group’s Q2 net profit fell 61.2% from SAR 348.71 million in Q1 2024.

Shareholders’ equity, after minority interest, rose to SAR 8.62 billion as of June 30, 2024, compared to SAR 8.19 billion in the prior-year period.

Shareholders’ equity, after minority interest, rose to SAR 8.62 billion as of June 30, 2024, compared to SAR 8.19 billion in the prior-year period.

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