JEDDAH, 18 July 2004 — The Savola Group board of directors yesterday approved the financial results for the second quarter of 2004 with net profits amounting to SR90 million. “These results show a jump in profits of SR18 million, a 25 percent increase, compared to SR72 million, which was achieved during the same period last year. Sales have also jumped from SR0.9 billion to SR1.2 billion from April to June-end this year.
“The Savola Group profits for the first half of 2004 reached SR156 million, an increase of SR33 million (27 percent) compared to SR 123 million last year.
During the first six months of this year, sales figures reached SR2.3 billion, an increase of SR 469 million (25 percent increase) compared to the same period last year which was SR1.9 billion.
Profits per share during the first six months reached SR7.81,” Savola Group Chairman and Managing Director Adel Fakieh said. The board also approved distribution of dividends for the second quarter of SR60 million (SR3 per share); eligibility for distribution will be effective Thursday (July 22).
Savola is described as the first publicly traded company to distribute quarterly dividends.
Total dividends distributed during the first half of 2004 amounted to SR130 million compared to SR112 million distributed during the same period last year.
Based in Jeddah, The Savola Group was established in 1979 and is a joint stock company with a paid-up share capital of SR1 billion. Its shares are traded on the Saudi Stock Exchange.
The Group consists of an edible oils and fats division through its subsidiary Savola Edibles Oils Company, a sugar division through its subsidiary United Sugar Company (USC) that is a joint venture with Tate & Lyle, a retail division through its subsidiary Panda Supermarket chain with 46 branches throughout the Kingdom, and Savola Packaging Systems Company (SPS).
The group also has investments in Al Marai Dairy Company, Saudi Arabian Glass Company (SAGCO), and Herfy, one of the Kingdom’s homegrown fast food chains.