Riyadh – Mubasher: Savola Group on Thursday reported that its profits plunged by 95.98% in the first quarter of 2017, compared to Q1-16.
Profits amounted to SAR 4.8 million in Q1-17, compared to SAR 119.4 million in Q1-16, according to a filing to the Saudi Stock Exchange (Tadawul).
The decrease in net profit in the first three months of the year is attributed to a drop in sales, profit margins in the retail sector, as well as the increase in zakat, taxes, and the rise in minority shareholders’ rights.
Savola said its net income declined despite cancelling the consolidation of the accounts of its Egyptian subsidiary, United Sugar Company, the narrowing of its losses from foreign currency exchange, and the increase in Savola’s stake in the net income of a sister company.
Total income attributed to shareholders amounted to SAR 10.8 million in Q1-17, against a loss of SAR 112.4 million in the same period in the year earlier, and against a loss of SAR 1.5 billion in Q4-16, the statement showed.
Net revenues dropped 9.4% to SAR 5.8 billion in Q1-17, from SAR 6.4 billion in the corresponding quarter in the year before.
The Tadawul-listed food products company had previously reported a loss of SAR 451.3 million in 2016, against profits of SAR 1.79 billion in 2015.
By 12:00 pm Saudi time, Savola’s stock fell 2.60% to SAR 41.20.
