RIYADH: Shares of Savola Group dropped after the giant food retailer’s first-half revenue soared to SR14.4 billion ($3.8 billion) on the back of higher sales from the food processing unit.
This is up 21 percent from SR11.8 billion in the same period last year, coupled with a 37 percent profit jump, the food giant said in a bourse filing.
As profit from the food processing segment rose 46 percent on the back of improved pricing, the group’s net profit surged to SR485 million from SR354 million a year earlier.
That said, the retail segment recorded a net loss of SR107 million, extending losses from 2021, while profits of food services and frozen foods fell by 5.5, and 8 percent, respectively.
Despite the solid half-year results, Savola saw its share price decline 1.2 percent to SR33.3 at the close of Wednesday’s trading session.
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.
