Savola’s profits increased to 270.9 million riyals (+76%) by the end of the first quarter of 2022

The profits of the Savola Group, which is one of the largest industrial groups in Saudi Arabia, increased to 270 million riyals By the end of the first quarter 2022compared to a profit of 153.8 Million riyals were achieved during the same period in 2021.

The company said that the reason for the increase in profits during the current quarter compared to the same quarter of the previous year is due to:

The increase in gross profit, which is mainly due to the increase in sales volume, which was partially offset by a partial increase in the prices of commodities in the food processing sector.

The increase in the group’s share in the profits of associate companies.

Decreased operating expenses.

The increase in net profit came despite:

High net financing cost.

– Increase in zakat and income tax expenses.

The group’s revenues in the first quarter of 2022 AD amounted to 7.5 billion riyals, an increase of 26% compared to the same quarter of the previous year.

The food manufacturing sector recorded revenues of 4.3 billion riyals during the first quarter of 2022 AD, which represents an increase of 48.9% compared to the same quarter of the previous year.

The retail sector recorded revenues of 2.8 billion riyals during the first quarter of 2022, an increase of 3% compared to the same quarter of last year, due to the impact of pre-Ramadan sales.

The company also attributed the reason for achieving profits during the current quarter compared with the previous quarter to:

– Asset impairment loss, which amounted to 421.9 million riyals, which was recorded during the previous quarter ending on December 31, 2021.

The increase in gross profit, which is mainly due to the increase in sales volume, which was partially offset by a partial increase in the prices of commodities in the food processing sector.

The increase in the group’s share in the profits of associate companies.

The group recorded a net profit despite:

High net financing cost.

– Increase in zakat and income tax expenses.

additional information:

The company said that shareholders’ equity (after excluding minority interests) at the end of the period amounted to 8177.9 million riyals, compared to 8507.1 million riyals at the end of the same period of the previous year.

Revenue by segment before inter-segment eliminations:

Revenues for the first quarter of 2022G increased compared to the same quarter of last year in the food processing, retail, food services and frozen food sectors by 48.9%, 3.2%, 5.8% and 5.4%, respectively.

Gross profit increased by 6% during the first quarter of 2022 compared to the same quarter last year driven by improvement in the food segments, which was partially offset by a decrease in gross profit in the retail segment. The increase in gross profit in the food processing sector is mainly due to the increase in sales volume, which was partially offset by the increase in commodity prices in the food processing sector.

Net Profit by Sector:

The net profit for the first quarter of 2022G increased compared to the same quarter of last year in the sectors of food processing, food services, frozen food, and investments by 37.8%, 14.7%, 7.3% and 73.6%, respectively.

The retail sector recorded a net loss of 34.8 million riyals for the first quarter of 2022, compared to a net loss of 51.7 million riyals for the same quarter of the previous year.

Reclassification of some comparative figures: The items, elements and comparative notes of the interim condensed consolidated financial statements have been re-presented, compiled and classified in order to comply with the accounting policies applied for the current period, which were prepared in accordance with International Financial Reporting Standards (IFRS) approved in the Kingdom of Saudi Arabia. For more information, please refer to Note No. 18 (Amendments to Standards and Standards issued but not yet effective) in the interim condensed consolidated financial statements for the period ending March 31, 2022 and March 31, 2021.

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