Saudi food group Savola posts 92% rise in profit on higher margins in pandemic year
Saudi Arabian food group Savola posted 91.51% increase in net profit for 2020 to 910.8 million riyals ($242.88 mln) compared to 475.6 mln riyals in 2019.
The company, whose business is mainly in staple foods, said in a bourse filing on Wednesday (Jan 27) that the increase is due to higher sales and margins.
Amid a pandemic year, its retail segment climbed out of the red to earn a profit of 71.87 mln riyals, and frozen foods did particularly well as consumers stocked up.
KEY STATS SAVOLA FY2020 VS FY2019:
- Sales/revenue 21,700.5 mln riyals, up 1.37%
- Net profit in food processing up by 6.4%
- Net profit in frozen foods up by 57.1%
- Net profit in investments up 15.6%
- Net profit retail segment 71.87 mln riyals vs. net loss of 342.41 mln riyals
SAVOLA’S BUSINESS LINES
Savola is involved in the food industry through its Savola Foods unit and also has financial investments in other companies.
Savola Foods is mainly in the business of B2C food brands in household staples such as edible oil, sugar, pasta, and ghee. Its B2C brands include Afia (edible oils), Yudum (edible oils, focused on Turkish market), Al Tayeb (groundnut oil), and Italiano (pasta brand, based in Egypt).
Savola’s retail business comprises the Panda grocery store chain in Saudi Arabia and Egypt.
The Saudi company’s focus geographies are the Middle East, North Africa, and Turkey.
The firm’s financial investments in the food sector include a 34.52% shareholding in Saudi F&B major Almarai and 51% ownership of frozen foods manufacturer Al Kabeer Group.
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