Riyadh – Mubasher: The Savola Group recorded a drop of 9.55% in profits during the second quarter of 2017 compared to the same period a year ago.

Net earnings shrank to SAR 229.3 million in Q2-17 from SAR 253.5 million in Q2-16, according to a bourse statement issued on Tuesday.

The decline in Q2 profits is attributed to a decrease in gross profit from lower sales and profit margins in the retail sector.

A non-recurring net positive impact of SAR 62 million was registered in Savola’s income statements. This impact was driven by a gain on disposal of leasehold rights by Panda Retail Company for its Hyper Panda store in Dubai Festival City Mall, UAE.

Net sales decreased by 5.6% to SAR 6.7 billion in Q2-17 from SAR 7.1 billion in Q2-16.

During the first six months of 2017, profits shrank by 37.22% to SAR 234.1 million from SAR 372.9 million in the same period a year ago, the statement noted.

In H1-17, net sales narrowed by 8.1% to SAR 12.5 billion from SAR 13.6 billion in H1-16.

It is noteworthy that Savola registered a drop of 95.98% in profits to SAR 4.8 million in Q1-17 from SAR 119.4 million in Q1-16.