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The Savola Group posted Thursday its interim financial results for the nine-month period that ended on September 30, 2014.
The company’s Q3 net profit rose 53.34% year-over-year to SAR 701.4 million, compared with SAR 457.4 million. It also increased 36.65% quarter-on-quarter to SAR 513.3 million.
Meanwhile, the nine-month net profit amounted to SAR 1.638 billion, representing an increase by 43.65% compared with SAR 1.140 billion in the same period a year earlier.
The increase in the Group net income for 3rd Quarter 2014 compared to the same quarter last year is attributed mainly due to the continued growth in revenues and outstanding performance of Retail Sector, increased share of net income from some associates, and the positive impact of reduced zakat and income tax and minority interests, in addition to the gain on disposal of investment mainly the selling of the Group entire stake in Masharef Real Estate Project executed during this quarter, as result Group recorded net capital gain of SAR 187.5 Million. This increase was achieved despite the increase of financial charges.
The increase in the Group net income for the period ended 30 September 2014 compared to the same period last year is attributed mainly to the continued growth in revenues, which reached SAR 20.6 Billion for this period compared to SAR 20.2 Billion for the same period last year in addition to the outstanding performance of Retail Sector, increased share of net income from some associates, and positive impact of reduced zakat and income tax, minority interests and gain on disposal of investment, mainly the selling of its entire stake in Masharef Real Estate Project executed during the period, as a result Group recorded net capital gain of SAR 187.5 Million. This increase was achieved despite the increase of financial charges.
The increase for 3rd quarter 2014 net profit compared with the previous quarter is mainly attributed to the increased share of net income from associates, lower operating and financial charges, reduced minority interest and gain on disposal of investment mainly the selling of its entire stake in Masharef Real Estate Project executed during this quarter as the result of this transaction, the Group recorded a net capital gain of around SAR 187.5 Million. This increase was achieved despite the increased zakat and income tax.
Dr. Abdulraouf Mannaa, CEO & MD of Savola Group, highlighted that by the Grace of Allah, the 3rd quarter net income (without capital gain) reached SAR 510 Million which is 10.9% higher than the announced forecast of SAR 460 Million, based on strong retail performance and good performance by the sister companies. These results are unprecedented for the 3rd quarter for the Group. He also mentioned that, with regards to the full year of 2014 forecast, the Savola Group is confident in achieving its earlier announced forecast of SAR 1.8 Billion net income (before capital gain) for the full year 2014. God willing. It is worth mentioning that the earnings per share for the nine-month periods ended September 30, 2014 and 2013, have been computed by dividing the net income attributable to shareholders of the Company for such periods by the number of shares outstanding during such periods. The numbers of outstanding shares during Q3, 2013 were 500,000,000 shares, whereas the numbers of outstanding shares during Q3, 2014 are 533,980,684 shares due to capital increase which took place in November, 2013.
The company’s Q3 net profit rose 53.34% year-over-year to SAR 701.4 million, compared with SAR 457.4 million. It also increased 36.65% quarter-on-quarter to SAR 513.3 million.
Meanwhile, the nine-month net profit amounted to SAR 1.638 billion, representing an increase by 43.65% compared with SAR 1.140 billion in the same period a year earlier.
The increase in the Group net income for 3rd Quarter 2014 compared to the same quarter last year is attributed mainly due to the continued growth in revenues and outstanding performance of Retail Sector, increased share of net income from some associates, and the positive impact of reduced zakat and income tax and minority interests, in addition to the gain on disposal of investment mainly the selling of the Group entire stake in Masharef Real Estate Project executed during this quarter, as result Group recorded net capital gain of SAR 187.5 Million. This increase was achieved despite the increase of financial charges.
The increase in the Group net income for the period ended 30 September 2014 compared to the same period last year is attributed mainly to the continued growth in revenues, which reached SAR 20.6 Billion for this period compared to SAR 20.2 Billion for the same period last year in addition to the outstanding performance of Retail Sector, increased share of net income from some associates, and positive impact of reduced zakat and income tax, minority interests and gain on disposal of investment, mainly the selling of its entire stake in Masharef Real Estate Project executed during the period, as a result Group recorded net capital gain of SAR 187.5 Million. This increase was achieved despite the increase of financial charges.
The increase for 3rd quarter 2014 net profit compared with the previous quarter is mainly attributed to the increased share of net income from associates, lower operating and financial charges, reduced minority interest and gain on disposal of investment mainly the selling of its entire stake in Masharef Real Estate Project executed during this quarter as the result of this transaction, the Group recorded a net capital gain of around SAR 187.5 Million. This increase was achieved despite the increased zakat and income tax.
Dr. Abdulraouf Mannaa, CEO & MD of Savola Group, highlighted that by the Grace of Allah, the 3rd quarter net income (without capital gain) reached SAR 510 Million which is 10.9% higher than the announced forecast of SAR 460 Million, based on strong retail performance and good performance by the sister companies. These results are unprecedented for the 3rd quarter for the Group. He also mentioned that, with regards to the full year of 2014 forecast, the Savola Group is confident in achieving its earlier announced forecast of SAR 1.8 Billion net income (before capital gain) for the full year 2014. God willing. It is worth mentioning that the earnings per share for the nine-month periods ended September 30, 2014 and 2013, have been computed by dividing the net income attributable to shareholders of the Company for such periods by the number of shares outstanding during such periods. The numbers of outstanding shares during Q3, 2013 were 500,000,000 shares, whereas the numbers of outstanding shares during Q3, 2014 are 533,980,684 shares due to capital increase which took place in November, 2013.
Source:
Mubasher
