Savola’s profits fell to 189.16 million riyals in the first quarter

The profits of the Savola Group in the first quarter of 2025 decreased by 45.8%, to 189.16 million riyals, compared to 348.71 million riyals in the same quarter of last year.
According to the company’s statement on Saudi Arabia’s trading, this mainly reflects the group’s cutting of its previous investment profits in Al -Murai Company, amounting to (236.7 million riyals), after it distributed its full share in the Al -Marai Company to the shareholders of the eligible group, which was partly compensated by the decrease in the costs of financing resulting from the payment of debts that took place in 2024 AD, which amounted to (89.6 million riyals).
It should be noted that, after adjusting the net profit for the first quarter of the previous year, to exclude the following:
(A) The impact of the suspended operations, (B) the group’s share of investment profits in the Al -Murai Company distributed over the eligible shareholders, and (C) the costs of financing related to debt in 2024 AD, the group profit in the first quarter of 2025 AD will become higher than the average net profit for the first quarter of 2024 AD of 170.3 million riyals, with an increase of 18.8 million riyals.
The increase in the net profit for the current quarter is due to the average net profit for the same quarter of the previous year mainly to:
– The net profit of the retail sector increased in the first quarter of 2024 AD from 33 million riyals to 39 million riyals in the first quarter of 2025 AD, which is mainly due to the positive impact of the Customer Experience (CXR) program.
– The group’s share of the results of colleague’s companies (after excluding the group’s share of the profits of Al -Murai Company and the United States of Sugar Company), as the amending group’s share after this exclusion turned from a loss of 1.6 million riyals in the first quarter of 2024 AD to profits of 10.4 million riyals in the first quarter of 2025 AD.
Decreased net financing cost.
Decreased zakat expenses and income tax.
The increase in net profit came on the basis of a rate for the current quarter despite the following:
-The net profit in the food manufacturing sector from 174 million riyals in the first quarter of 2024 to 154 million riyals in the first quarter of 2025 AD, is mainly due to the return of the profit margin to its normal levels in the food oil sector in the Saudi market. The decrease in the net profit of the food manufacturing sector comes despite the failure to record foreign currency exchange losses recorded in the first quarter of 2024 AD at a value of 109 million riyals, due to the decrease in the value of the Egyptian pound.
– The performance of the food services sector (Herfy) decreased, as the performance turned from a net profit of 0.4 million riyals in the first quarter of 2024 AD to a net loss of 18.6 million riyals in the first quarter of 2025 AD.
High operational expenses.
The group recorded a net profit during the first quarter of 2025 AD amounted to 189 million riyals compared to a net profit of 9.3 billion riyals for the previous quarter, and the reason for the decrease in the net profit is mainly due to the following:
– The absence of unacceptable profit registered in the fourth quarter of 2024 AD at a value of 11.3 billion riyals, resulting in the distribution of the entire share of the Savola Group in Al -Murai Company, which amounts to 34.52% to Savola’s eligible shareholders.
– The net profit of the retail sector decreased by 18.6 million riyals, and is achieved in the fourth quarter of 2024 AD as a result of the reversal of the decrease in the net value that is not repeated at a value of 16.8 million riyals on some uninterested assets.
– The group’s share of the profits of colleague’s companies, which is mainly due to the distribution of the entire share of the Savola Group in Al -Marai Company to the shareholders of the Savola group.
The decrease in net profit comes despite the following:
– The net profit of the food manufacturing sector is an amount of 2.1 billion riyals, and this is mainly due to the absence of the effects of the following recurring items that affected the fourth quarter of the year 2024 AD:
A- Registration of a repeated loss of 1.5 billion riyals resulting from the sale of the group’s operations in Iran, which included 0.3 billion riyals registered in the profits, and the remaining net impact of the suspended operations, which amounted to 1.1 billion riyals and the rate of the net operating profit of 98 million riyals during the year 2024 AD.
B recording an unexpected loss of 0.3 billion riyals resulting from the suspension of operational operations in Sudan.
C- The unacceptable impact to cancel the classification of the United Egyptian Sugar Company as a colleague company, with a value of 139 million riyals, of which 97.2 million riyals registered in the food manufacturing sector.
D- Registration of a clear net value of the value of 310.8 million riyals for some non-circulating assets.
The absence of a repeated clause related to a net decrease in value in the first quarter of 2025 AD at a value of 96.4 million riyals, which was registered in the fourth quarter of 2024 AD for some non -circulating assets, especially in the frozen food sector.
The performance of the food services sector (Herfy), which turned from a net loss of 59.9 million riyals in the previous quarter, improved a net loss of 18.6 million riyals in the first quarter of 2025 AD.
Low operational expenses.
Decreased net financing cost.
Decreased zakat expenses and income tax.