Savola’s net profit in Q2 2019 of SAR 110 million missed market estimates of SAR 140 million, Al Rajhi Capital said in a research note.
The brokerage firm said that Savola’s net profit growth was mainly impacted by the overall negative revenue growth and lower share of income from investment in affiliates.
“Going forward, we remain wary about the top-line growth due to loss of market share amidst store closures and weaker volume growth in the food business,” Al Rajhi said.
Al Rajhi Capital maintained a “Neutral” rating on the stock with a target price of SAR 30 per share.
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