GulfBase Live Support
21/04/2016 05:00 AST
Saudi food producer Savola Group, the country's largest food products company, slashed its dividend after reporting a 80.3 percent fall in first-quarter net profits, missing analysts' forecasts.
It is the latest Saudi retailer to report poor earnings for the period as the local economy has been hit by lower oil revenues.
Savola's net profit in the three months to March 31 was SR92.9 million ($24.8 million), compared with SR470.5 million in the same period a year earlier, Savola said in a bourse statement.
That was below an average forecast of three analysts polled by Reuters of SR268.1 million.
While the profit drop was mainly due to an exceptional gain made in the same period last year, the company's shares still slumped as much as 9.2 percent after the company said it was halving the dividend for the quarter to SR0.25 a share.
Saudi retailers have felt the fallout from a prolonged lull in oil prices that is weighing on government and consumer spending.
Almarai warned of challenging market conditions after reporting a marginal rise in first-quarter net profit.
Jarir Marketing, one of the Kingdom's largest retailers by market value, posted a 29.5 percent drop in net profit over the same period on falling sales, particularly for smartphones and other electronics.
Savola attributed the fall in profit mainly to the fact its earnings were boosted in the same period last year by a SR265.2 million capital gain from the sale of its packaging unit to Takween Advanced Industries.
It said lower consumer spending, along with higher operating expenses from its expansion in retail and the devaluation of the Egyptian pound, also hurt its results.
The company has an indirect subsidiary in Egypt, United Sugar Company of Egypt (USCE). Increased financial charges due to currency exchange losses in USCE dented Savola's profit, despite lower taxes in overseas subsidiaries, it said.
A chronic shortage of foreign currency is hampering Egyptian businesses, leading the central bank to ration dollars through auctions with commercial banks, giving priority to imports of strategic goods.
Arab News
31/01/2018
Further to the Savola Group (The Group) previous announcement dated 14/11/2017, regarding the resignation of its CEO, the Group would like to announce its Board of Directors decision dated 30/1/2018
Tadawul
29/01/2018
Three major retailers from the Middle East region - Emke Group/Lulu Group International, Majid Al Futtaim Holding and Savola Group – are on a new list of top 250 global retailers, launched by Deloitt
Trade Arabia
02/01/2018
FOLLOWING the success of its drive “Negaderha“, Savola group presented its first of kind initiative at 5th Arab Roundtable Meeting on Sustainable Consumption and Productions which was organized recen
Saudi Gazette
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
05/04/2018
SABIC announced the successful completion of the pilot operation of the Methyl Methacrylate Monomer (MMA) and Poly Methyl Methacrylate (PMMA) plants and the commencement of commercial operations.
Saudi Gazette
05/04/2018
Standard & Poor’s (S&P) has affirmed QIB’s Issuer Credit Rating at A-, Qatar’s leading Islamic bank has said in a release. According to S&P, the major contributing factors strengthening QIB’s rating
Gulf Times
05/04/2018
Qatar National Bank (QNB) aims to increase its profit by 5-8 percent this year and loans and investments by 10-12 percent, helped by expansion into faster-growing Southeast Asia markets, its CEO told
The Peninsula
04/04/2018
Doha Bank has announced the official inauguration of its Chennai Branch, in the southern Indian state, will be held today. This is Doha Bank’s third city in India after its successful establishment o
The Peninsula
04/04/2018
Bank of Sharjah said it has engaged SHUAA Capital International as liquidity providers for its shares and will commence the activity from April 4. SHUAA Capital International shall not hold more than
Gulf News