Jeddah – :
Savola Group – a leading strategic investment holding group in the food and retail sectors across the MENA region (Middle East & North Africa) – announced its interim financial results for the 3rd quarter and the 9-months period ended 30-09-2020, which revealed that the net profit for the 3rd quarter has increased to SAR 283.7 million in comparison to SAR 221.8 million for the same quarter of last year, which represents an increase of 27.9%. This brings the net profit for the 9-months period ended 30-09-2020 to SAR 866.1 million in comparison to SAR 338.3 million for the same period ended 30-09-2019, which represents an increase of 156%.
The results have demonstrated revenues of SAR 16.52 billion for the 9-months period ended 30-09-2020 compared to SAR 16.17 billion for the same period ended 30-09-2019 (an increase of 2.1%).
The growth in the Group’s profit is mainly attributed to the higher gross profit due to higher sales and margins; and higher share of profit from associates; as well as lower operating cost and lower net finance cost mainly due to the decrease in the financial charges on borrowings. The increase in the net profit was achieved despite of the higher zakat and income tax expense and lower zakat provision reversal relating to prior years.