Savola Q4 profit rises 37pc to $150m
Riyadh, January 20, 2014
Saudi Arabia's Savola Group reported a 37 percent rise in fourth-quarter net profit on Monday, missing analyst estimates after the food company took an impairment of 100 million riyals on its investments and commodity prices fell.
Savola made a net profit of 564 million riyals ($150.4 million) in the three months to December 31, up from 413 million riyals in the prior-year period, according to a bourse filing.
Analysts polled by Reuters on average forecast Savola would make quarterly profit of 642.5 million riyals.
Helping to offset the impairment, Savola booked a capital gain of 231.4 million riyals from land sales in the quarter.
It also warned that hyperinflation in Iran and Sudan had negatively affected its operating profit, while lower commodity prices impacted revenue.
Savola has proposed a fourth-quarter dividend of 0.5 riyals per share, according to a separate bourse statement. This was the same as the dividend paid for the prior-year period.
The company's full-year profit for 2013 was 1.7 billion riyals, up from 1.4 billion riyals in 2012.
Earlier on Monday, Savola said it expects make a net profit of 1.8 billion riyals in 2014. - Reuters