Saudi Arabia food group Savola earned a net profit of 475.6 million riyals ($126.83 million) last year from a loss of 520.4 million riyals in 2018, the company reported in a bourse filing on Wednesday (Jan 29).
It attributes the improvement in its fortunes to several factors, including higher gross profits due to higher sales and margins, higher share of profits from associates, and lower operating expenses mainly due to a significant decrease in impairment losses.
“The net profit for the year was achieved despite of the 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,” said the company.
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