Riyadh – Mubasher: Savola Group announced turning a profit in the full year 2017 with SAR 1.026 billion against losses of SAR 363.3 million in 2016.

Gross profits for 2017 amounted to SAR 4.386 billion, down 6.77% year-on-year from SAR 4.704 billion, Savola said in a statement to the Saudi Stock Exchange (Tadawul).

Earnings per share (EPS) amounted to SAR 1.92 in 2017 versus losses per share (LPS) of SAR 0.68 in 2016.

Savola attributed its profitability last year to a gain on disposal of ownership in Tadawul-listed Almarai as well as a non-recurring net positive impact of SAR 62 million from a divestment of leasehold rights by Panda Retail Company, of its Hyper Panda store in Dubai Festival City Mall, the UAE.

Moreover, an SAR 30 million divestment “due to the recognition of dilution gain net of option cost, upon deconsolidation of United Sugar Company Egypt,” contributed to the positive results.

Furthermore, Savola reported lower impairment losses, operating expenses, net finance cost as well as lower zakat and taxes in 2017, prompting the SAR 1 billion in profits, the statement showed.

Savola further noted that its profitable net income was due to lower gross profit mainly from the foods sector, whereas the sales decline was attributed to both the food and retail sectors.

The food products group also reported a sharp drop in losses in the final quarter of 2017, when it narrowed losses by 95.9% to SAR 37.5 million from SAR 915.7 million in Q4-16.

Gross profits amounted to SAR 1.152 billion in Q4-17, up 25.78% year-on-year from SAR 915.9 million.

By 12:44 pm Saudi time, Savola’s stock grew 1.27% to SAR 37.45.