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Saudi Arabia’s Savola Group reported higher profit in the third quarter of the year despite a decline in revenue during the same period, according to data released by the company on the Saudi stock exchange website.
The company said third-quarter revenue reached SAR6.1 billion, equivalent to about $1.6 billion, down around 4.6%.
Savola attributed the decline mainly to lower revenue from its food manufacturing segment, due to lower crude edible oil prices and lower edible oil sales volumes.
This came despite higher sales volumes in the sugar segment and revenue growth in the retail and frozen foods segments.
Despite the revenue decline, Savola said its third-quarter net profit rose to SAR181 million, up around 23% year on year.
The increase was supported by a significant rise in retail-sector profit, a higher share of profit from associate companies, lower net financing costs, lower zakat and income tax expenses, and a non-recurring gain in the food manufacturing segment related to the recovery of customs duties.
Over the first nine months, Savola Group’s revenue fell to SAR19.2 billion, down 5.1% year on year.
Net profit also declined slightly to SAR665 million, down around 1%.
The company said the nine-month revenue decline was due to several factors, including lower food manufacturing revenue caused by lower crude edible oil prices and lower edible oil sales volumes.
Other factors included foreign-exchange weakness in some external markets, the exit from the investment in Savola Morocco, and the temporary suspension of operations in Savola’s Sudan business because of the ongoing conflict.
Source: Sky News Arabia