Savola’s Q1 net income up 21.8% to SR 295.2 million

The Savola Group has posted higher net profits for the first three months of this year.
The group announcing its interim consolidated financial results for the three-month period ended March 31, 2013, stated its net income of SR 295.2 million for Q1, 2013 marked an increase of 21.8 percent compared to SR 242.3 million reported for the same quarter last year, and a decrease of 28.6 percent compared to SR 413.4 million reported for the fourth quarter of last year.
Gross profit for Q1, 2013 amounted to SR 1.36 billion, an increase of 36.5 percent compared to SR 996 million for the same quarter last year. Operating profit for Q1 2013 amounted to SR 711.3 million, an increase of 62 percent compared to SR 438.9 million reported for the same quarter last year. Earning per share for Q1 2013 is SR 0.59 as compared to SR 0.48 for the same period last year.
The increase in the group’s net income for Q1, 2013 compared to the same quarter of last year is attributed mainly to stronger revenue growth in the foods sector, led by the edible oils segment, and continued sales growth and increased market share in the retail sector (Panda Stores). As a result, the group’s revenues for the quarter reached SR 7.2 billion, an increase of 9 percent compared to SR 6.6 billion for the same quarter last year.
The decrease in net income for Q1 2013 compared to the fourth quarter of last year was mainly due to the positive impact of general seasonal consumption factors on the 4th quarter results. Certain comparative figures have been reclassified to conform to this quarter presentation.
In a continuation of its declared policy to distribute quarterly dividends to its shareholders and due to the outstanding net profit reported during Q1 2013, Savola Group Managing Director Abdulraouf M. Mannaa said the group’ board of directors, approved on April 11, 2013, the distribution of SR 250 million, (SR 0.50 per share) as dividends for the 1st quarter of 2013, which represents 5 percent of the company’s nominal share value. The maturity date for Q1, 2013 dividends was April 17 for all shareholders registered in the company books until trading on that day. The dividend payments will be processed on April 30, 2013.
Mannaa said: “We would like to highlight that the 1st quarter net income reached SR 295.2 million, which is 13.5 percent higher than the forecast of SR 260 million despite the challenges in overseas markets. He indicated that Savola expects to achieve a net income before capital gains of SR 365 million for the second quarter of 2013.