Riyadh – Mubasher: Savola Group on Wednesday announced the interim financial results for the 12-month period ended on 31 December 2019.

Savola achieved a net profit after Zakat and tax of SAR 475.6 million last year, versus losses of SAR 520.4 million in 2018.

Turning to profits resulted from a substantially improved performance, with higher gross profits due to higher sales and margins, and a higher share of profits from associates, and lower operating expenses, according to the company’s statement to the Saudi Stock Exchange (Tadawul).

Moreover, last year Savola witnessed a reversal in Zakat and tax provisions relating to prior years’ assessments for the subsidiaries, while 2018 saw an exceptional expense recorded to an associate’s subsidiary.

Achieving net profits was despite the increase in the net finance cost resulting mainly from the adoption of new leasing standard (IFRS 16), which was partially compensated by the reduced foreign currency exchange losses, the statement noted.

In a sperate disclosure to Tadawul, Savola Group announced the distribution of SAR 160.2 million in cash dividends to shareholders for 2019, at SAR 0.30 per share or 3% of the share’s par value.

Moreover, Savola announced its intention to purchase shares and retain them as treasury shares under the Employees Long Term Incentive Program (LTIP) for its executives.

A total of 700,000 shares, 0.13 % of the group’s total shares, will be retained as treasury shares under the Employees LTIP.

The purchase will be funded through the company’s internal resources, Savola said in a statement to Tadawul.

The move is subject to the approval of the company’s extraordinary general assembly meeting (EGM).