The Savola Group,  a leading strategic investment holding group in the regional food and retail sectors, has reported a 50.4% growth in its first-quarter net profit attributable to shareholders, helped by stronger performance in its food processing business, improved margins and a one-off gain from the disposal of operations in Sudan.

Announcing the results for the three months ended March 31, 2026, Savola Group said its net profit attributable to shareholders rose to SAR284.5 million ($75.9 million) from SAR189.2 million last year, while its revenue was broadly flat at SAR7.29 billion ($1.94 billion), compared with SAR7.28 billion ($1.94 billion) in 2025.

Operating profit increased 16.7% year-on-year to SAR421.7 million, while gross profit rose 1.8% to SAR1.4 billion.

Savola said its food processing segment benefited from higher sales volumes in edible oils and pasta, helping segment profit rise to 219 million riyals from SAR130 million a year earlier.

The company also booked a non-recurring gain of SAR43 million related to the disposal of operations in Sudan, of which Savola’s share amounted to SAR41 million.

Its retail segment, which includes Panda Retail Company, posted a slight increase in profit to SAR40 million from SAR39 million a year earlier, supported by improved margins despite higher operating expenses linked to new store openings and investments in its Customer Experience Revival programme.

The food services segment reduced its net loss to SAR4 million from SAR19 million a year earlier.

Revenue in the retail segment edged lower amid competitive market conditions, although the decline was partly offset by new stores and higher e-commerce sales. The food services and frozen foods businesses also reported lower revenue due to market conditions, Savola said.

Compared with the previous quarter, first-quarter revenue rose 11.3%, while net profit increased 46.6%, driven by seasonal consumption patterns and stronger margins in the food processing segment.

Total shareholders’ equity attributable to owners of the company rose 19% year-on-year to SAR5.71 billion. Earnings per share increased to 0.96 riyals from 0.63 riyals a year earlier.-TradeArabia News Service