JEDDAH: The Savola Group, one of Saudi Arabia’s major industrial companies with a wide portfolio of businesses including edible oils, sugar, packaging and real estate, yesterday presented a “realistic” picture of the group against the background of the global financial crisis. “What we present today is a realistic picture,” Sami M. Baroum, managing director of the group, told a press conference convened at its office here to present the financial results for 2008 and the outlook for 2009.
The group posted a SR200 million net profit for 2008, a decrease of 83.5 percent.
Some of its other 2008 highlights: Sales increase by 30 percent to reach SR13.8 billion against SR10.4 billion in 2007, operating profit reached SR670 million against SR733 million in 2007, retail sector achieving SR177 million, which is three times its profit of 2007, distribution of SR500 million in profit to shareholders and fall in the price of raw materials generating additional cash close to SR750 million in 2009.
Baroum said the group was reviewing its investment priorities, especially new projects, as the global financial turmoil had brought new acquisition opportunities.
He declined to say how the reprioritization of investments could affect the firm’s previous plans. He does not however expect to face any difficulties in financing the company’s expansion amid the global financial turmoil.
“We are strategizing our plans in the context of the global financial crisis and hopeful of returning to profit in the first quarter of 2009 as global commodity prices stabilize,” he said. However, net earnings in the three months are expected to fall about 36.1 percent.
