Savola’s profits rise to 181 million riyals in Q3, by 22.8%

Savola Group announced that net profit reached 181 million riyals during the third quarter of 2024 compared to 147.4 million riyals in the same quarter of last year by 22.8%, following the announcement today of the estimated financial results for the period ending September 30, 2024 (9 months).

Operating profit amounted to 409.8 million riyals in the third quarter of 2024 compared to 462.2 million riyals in the same quarter of the previous year, an increase of 11.3%.

Earnings per share amounted to 0.71 riyals in the third quarter of 2024, compared to 0.74 riyals in the same quarter of the previous year.

According to the group, it recorded a net profit during the third quarter of 2024 of 181 million riyals, compared to a net profit of 147 million riyals for the same quarter of the previous year. The increase in net profit is mainly due to the following:

– The increase in the net profit of the retail sector from 14.5 million riyals in the third quarter of 2023 to a net profit of 57.3 million riyals in the third quarter of 2024, as a result of the positive impact of the Customer Experience Improvement Program (CXR), in addition to the improvement in operations in general.

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

– A decrease in net financing costs.

– A decrease in zakat and income tax expenses.

– A non-recurring profit in the food manufacturing sector related to the recovery of customs duties from the Zakat, Tax and Customs Authority in the Kingdom of Saudi Arabia, which had a net impact of 19.4 million riyals.

The increase in the Group’s net profit came despite:

– The Food Manufacturing Sector recording a non-recurring charge of SAR 29 million related to an emerging asset (Munchbox) in addition to the sector completing the acquisition of this brand and integrating it into Savola’s snack food operations.

– The Food Services Sector’s performance declined from a net profit of SAR 11 million in the third quarter of 2023 to a net loss of SAR 33.4 million in the third quarter of 2024

– Increase in operating expenses.