Saudi Arabia's leading food products company Savola Group has reported a net profit of SR475.6 million ($126.4 million) for FY 2019 compared to the net loss of SR520.4 million ($138.3 million) the year before.
Announcing the results for the year ended December 31, 2019, the Saudi group said its revenue surged to SR22.2 billion, up 1.9 per cent compared to SR21.8 billion in 2018 due to substantially enhanced performance.
A leading Saudi industrial conglomerate, Savola boasts major holdings that supply the Middle East and North Africa region and Turkey with edible oils, sugar, fresh dairy products and restaurants serving fast foods.
Among its several key subisidiaries is Panda, a leading grocery store chain spread across the kingdom and also Egypt which is 91 per cent owned by the group.
The company attributed its profit growth to the higher gross profits due to higher sales and margins;
lower operating expenses mainly due to the significant decrease in the impairment losses and the higher share of profits from associates.
Also an exceptional expense was recorded in the comparable period relating to an associate’s subsidiary, said a statement from Savola.
According to the Saudi group, the net profit for the year was achieved despite an increase in the net finance cost resulting mainly from the adoption of new leasing standard (IFRS 16) applied during 2019, being partially compensated by the reduced foreign currency exchange losses.-TradeArabia News Service
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