Savola sees modest profit slip to SAR 665.1M in 9M 2024; Q3 at SAR 181M

Savola Group reported a net profit of SAR 665.1 million for the first nine months of 2024, a marginal pullback from SAR 672.1 million in the year-earlier period.

The annual profit drop was attributed to lower revenues from the food processing segment due to the decline in crude edible oil prices and sales, paired with the foreign exchange (FX) negatives in some international markets.

This is besides the investment divestment of Savola Morocco SA, alongside the temporary suspension of operations in Sudan due to the escalating conflict in the country.

In the food processing segment, net earnings contracted by SAR 87 million, hurt by recognizing SAR 109 million in FX losses given the weaker Egyptian pound. As for the food services segment, it swung to net losses of SAR 56.6 million in 9M 2024, versus profitmaking in the year-ago period.

Savola also logged a non-recurring loss of SAR 29 million on the acquisition of an emerging asset (the Munchbox brand). Further, operating expenses (opex) and net financing costs (FCs) increased year-on-year (YoY) in the first nine months of 2024.

This came although Savola witnessed improved performance in its retail segment, which turned from a net loss of SAR 22 million in 9M 2023 to a net profit of SAR 96.5 million in 9M 2024, thanks to its Customer Experience Revival (CXR) Program.

Additionally, it recorded non-recurring revenues of SAR 19.4 million due to customs duty refunds in the first nine months of 2024, besides posting an increased share of profits from associate companies. Zakat and income tax expenses also decreased YoY during the same period.

In Q3 2024, Savola’s bottom-line came in at SAR 181 million, up 22.8% from SAR 147.36 million in the prior-year period.

On a quarterly basis, net earnings climbed by 33.7% from SAR 135. 59 million in Q2 2024.

Shareholders’ equity (after minority interest) grew to SAR 14.72 billion by the end of Sept. 30, 2024, compared to SAR 8.30 billion in the year before.

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