Savola on track to meet full-year forecasts
Riyadh, October 26, 2013
Saudi Arabia's Savola Group said it has registered a 12.9 per cent rise in third-quarter net profit and was on track to meet its forecast for full-year earnings.
The food company made a quarterly net profit of SR457.4 million ($122 million) for the three months to September 30, a bourse filing said. This compares with a quarterly profit of SR405.2 million in the year-earlier period.
Savola's earnings exceeded the average forecast of six analysts polled by Reuters, who forecast the firm would make 418.6 million dirhams in the period.
The company attributed the increase to "continued sales growth and increased market share in its retail sector," as well as the receipt of dividends worth SR67.9 million from private equity fund Joussour Holding Co.
Savola was confident of meeting its full-year net profit forecast for 2013 of SR1.5 billion, Abdulraouf M. Mannaa, chief executive of Savola, said in the earnings statement.
Its nine-month net profit rose 15.3 per cent to SR1.14 billion, the statement said.
Savola also proposed a third-quarter dividend of 0.5 riyals per share in a separate statement to the bourse.
The company said on October 7 it had received regulatory approval for a SR339.8 million capital increase to fund its acquisition of Al-Muhaidib Holding Co Limited's stakes in Savola Foods Co and Azizia Panda United Company.
The increase, which will hike its capital to SR5.34 billion, still requires the assent of shareholders, it added.-Reuters