Saudi Savola Group Q1 Profit Rises 43%

The company made a profit of 423 million riyals in the first three months of 2014, up from 295 million riyals in the year-earlier period.

Saudi Arabia’s Savola Group posted a 43 per cent rise in first-quarter profit on Sunday, beating analysts’ estimates as the food producer expanded its market share in the retail sector, revenue rose and financial charges fell.

The company made a profit of 423 million riyals ($112.8 million) in the first three months of 2014, up from 295 million riyals in the year-earlier period, according to a statement to Riyadh’s bourse.

Analysts polled by Reuters on average had forecast Savola would make a quarterly profit of 323 million riyals.

The firm, a producer of cooking oil, sugar and other foodstuffs, attributed its higher net profit to growth in revenue, increased market share in the retail sector, lower finance charges and larger profits from an affiliate. It did not provide further details.

Savola expects its second-quarter net income before any capital gains to be 410 million riyals, chief executive Abdulraouf Mannaa said in the statement.

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