Riyadh-Mubasher: Al Rajhi Capital has kept the Savola Group ‘Under Review’, stating that the company’s Q4-15 financial results came in below its as well as consensus estimates.
The research firm added that profits margins came under pressure from falling food prices, new store additions and strengthening US dollar.
Net profits grew 18.6% year-on-year to SAR 515.3 million, missing the company’s guidance as well as Al Rajhi and consensus estimates.
For the full year, profits before capital gains stood at SAR 1.49 billion (-23% y-o-y), below the company’s guidance of SAR 1.63 billion.
Savola announced cash dividends of SAR 0.5 per share for Q4-15, bringing the full-year dividends to SAR 2 per share, which translates to a dividend yield of 6.7%.
“We believe Savola will be able to maintain its dividend payment in 2016,”the research firm said.
