RIYADH: Savola Group, a major food retailer in Saudi Arabia, has seen a decline in net profit in 2021 — 75.6 percent — as retail segment suffers from pandemic and taxation changes.
Net profit dropped from SR910.8 million ($242.7 million) to SR221.9 million from a year ago, the company said in a bourse filing.
The company attributed the decline to higher impairment loss, lower share of profit from associates, and higher zakat and tax expense.
A 10 percent decrease in retail segment revenues, led by the impact of value-added tax changes to 15 percent, also pushed the profit down.
The company also said it will distribute a 2 percent cash dividend per share.
Established in 1979, Savola’s major holdings supply Saudi Arabia, the Middle East and North Africa, and Turkey with edible oils, sugar, fresh dairy products, and fast food restaurants.
