JEDDAH: Savola Group Managing Director Abdulraouf Mannaa has announced that the group achieved a net profit of SR 405.2 million during the third quarter of 2012 compared to SR 307.9 million during the same quarter last year, an increase of 31.6 percent and compared to SR 341.3 million for the previous quarter amounting to a 18.7 percent increase.
Net profit for the first nine months of 2012 amounted to SR 988.9 million compared to SR 703.8 million for the same period last year with an increase of 40.5 percent.
Operational profits during the third quarter reached SR 616.8 million compared to SR 471.8 million for the same quarter last year at an increase of 30.7 percent.
This makes the total operational profits for the first nine months SR 1.660 million compared to SR 1.202 million for the same period last year at an increase of 38.1 percent.
Share profits for the first six months reached SR 1.17 compared to SR 0.79 for the same period before.
Mannaa attributed the increase of profitability during the first three quarters of the year for the period ending Sept. 30 to good performance of its operations in the foods sector, continued sales growth, and increased market share in its retail sector; hence the Group generated revenues of SR 20.4 billion for the nine months compared to SR 18.8 billion for same period of last year, and capital gain of SR 46 million due to the sale of Emaar Economic City shares as part of the group’s strategy to divest noncore investments.
The increase in net income for the third quarter compared to the second quarter of this year is due to the reasons mentioned above as well as the seasonal impact experienced every year during this quarter.
Mannaa highlighted that the 3rd quarter net income before capital gain and exceptional items reached SR 358.4 million, which is 5.4 percent higher than the forecast of SR 340 million.
He also revealed that Savola expects to achieve a net income before capital gain of SR 1.32 billion for the full year 2012, which is 10 percent above the original forecast of SR 1.2 billion.
In continuation of its declared policy to distribute quarterly dividends to its shareholders and due to the outstanding net income achieved during the 3rd Quarter 2012, which reached SR 405.2 million, Mannaa, announced that the group’s board of directors approved the distribution of SR 150 million (i.e. SR 0.30 per share) as dividends for the 3rd quarter of 2012, which represents 3 percent of the company share nominal value.
The maturity date for third quarter dividends will be for all shareholders registered in the company books by the end of the trading date of Monday (Oct. 22).
The dividend payments process will start as of Nov. 17.
Therefore, the dividends distributed to shareholders during the first and second quarters plus those to be distributed for the third quarter of the current fiscal year will reach SR 450 million, which represents 9 percent of the company share capital nominal value.
The Savola Group operates in three core sectors — Food, which includes edible oils, sugar, and pasta; the retail through Al-Aziziya Panda supermarkets and hypermarkets; and the plastics sector, which manufactures both rigid and flexible plastic products.
In addition, the group has a diversified portfolio of strategic investments in which it owns 29.9 percent of Al-Marai fresh diary company, 49 percent of Herfy foods and restaurant chain, and 29.9 percent of Kinan International real estate.
The group is also one of the founders of Knowledge Economic City in Madinah.
The group previously declared a record net profit from operations for the year 2011 amounting to more than $ 1 billion, an increase of 35 percent as well as announcing its forecast of net income of 1.2 billion riyals (before capital gains) for the year ending 2012.
