Riyadh – Mubasher: Savola Group posted a decline in its profits by 53.34% year-on-year during the third quarter of 2016, according to a bourse statement.
Net profits reached SAR 173.4 million ($46.24 million) in Q3-16, compared to SAR 371.6 million ($99 million) in Q3-15. In addition, the company's Q3-16 net profits fell 29.71% compared to SAR 246.7 million ($65.78 million) in Q2-16.
The year-on-year fall in Q3-16 profits is mainly attributed to lower gross profits, in addition to a rise in operating expenses, financial charges, zakat and tax, and income from associates.
Gross profit decrease resulted from a decline in margins in the retail sector. The rise in operating expenses is due to opening of new stores and new distribution center in the Western region in Retail sector.
Higher losses in USCE (classified as discontinued operations) is mainly attributed to lower margins despite reduced currency exchange losses negatively affected the group’s profits.
In the first nine months of 2016, net profits declined 59.81% to SAR 513 million ($136.8 million) from SAR 1.276 billion ($340.37 million) in the prior-year period.
