SR13.9 mln Garnered from SAVOLA’s Shares Selling, in the 1st Phase

The first stage of selling the shares of SAVOLA have completed, on September 9, 2021, as the required stocks earmarked for covering the shares of the second tranche of a long term employees’ incentive shares program, in accordance with the accredited terms and conditions. 

As much as 349,076 shares have been sold out, from as many as 1.2 million shares, endorsed by the extraordinary general assembly of the shareholders, as the maximum barrier for the number of shares to be sold.

Other kept shares as treasury stocks, for the sake of covering the 3^rd tranche, shall be reviewed, before the end of the selling period as per ordained by the extraordinary general assembly, to complete the selling process, within 12-month following its decision on April 28, 2021.

The company’s average buying stock price stood at SR39.89, putting the overall valuation of sold shares at SR13.925.

Such step followed the group endeavor to recruit qualified and distinct cadres, keep them and stimulate them for betterment of performance, in order to realize the strategic targets of the SAVOLA group.

SAVOLA’s net profit, after Zakat and Taxation have slipped to SR200 million, or 51 per cent, in the 2^ndQ, 2021 against the same period in the last year, which have seen a net profit of SR410 million.

The current year net profit was down to its previous estimates of SR225 million, adding that the company’s revenues reached SR5.183 billion, against the expectations of as much as SR5.954 billion.

For its part, Al-Rajhi Capital projected that SAVOLA would make a profit of SR809 million, at the end of the year, a slump of 11.2 per cent compared to its profit in 2020, at SR911, but it would rise to SR942, in 2022, at a rate of 16.4 per cent compared to the profit of 2021.

Al-Rajhi Capital kept its recommendation on being neutral against SAVOLA’s share, with the targeted raising of its share to SR40, compared to the previous valuation at SR39 for the share, saying that the much more emigration of the expatriates would lessen the overall population, in the Kingdom, subsequently, affecting the revenues and the profit of the company, as well.

Adding that such a situation, would have a negative impact on the assessments, while it may consolidate the favorable selling combination against lessening the competition, due to the hike in the basic commodities and the profitability, in the short term, a fact that would constitute an ascending chance for the assessments.