Savola focuses on sales growth amid resilient demand: CEO

Savola Group CEO says product demand remains steady as sales continue to grow

Demand for Savola Group’s products remains generally steady and sales continue to grow across several activities, CEO Sameh Hassan told Argaam in an interview.

The group continues to monitor demand, prices and supply-chain developments across its markets.

Savola’s performance in H1 2026 was driven by sales volume growth, supply continuity and improved operational efficiency across key segments, with revenue rising to SAR 13.6 billion, he noted.

He said the group remained focused on factors within its control, particularly improving operational efficiency, strengthening supply-chain resilience and enhancing cost management, which supported its business portfolio amid changing market conditions.

The food industries segment led growth in H1 2026, with revenue rising 7.5% year-on-year (YoY) to around SAR 6.9 billion, supported by higher sales volumes and improved market share. The retail segment maintained its operational performance, backed by the expansion of its store network and growth in digital channels.

Hassan noted that food industries’ performance was affected by varying price trends across products, with prices of some key commodities supporting revenue. Meanwhile, lower global prices for certain products, particularly sugar, limited revenue growth.

He pointed out that demand remained generally resilient, with sales continuing to grow in several activities, including frozen foods in Q2 2026. The group continues to monitor demand, prices and supply-chain developments across its markets.

Regarding geopolitical developments, the CEO said Savola maintained a strong operating framework to manage risks related to supply chains, shipping costs and raw materials. While these developments posed a significant challenge in the recent months, their impact was mitigated through improved operational efficiency and tighter control of administrative and selling expenses and financing costs.

He added that Savola will continue to monitor regional conditions and assess their potential impact on its operations, given the evolving nature of geopolitical developments and their effect on trade and input costs.

Frozen Foods and Food Services

Hassan said the frozen foods segment recorded improved profitability in H1 2026 despite pressure on revenue in Q1 2026, supported by an improved product mix and an improved contribution from higher-margin products.

The food services segment also improved its operational performance during the period, benefiting from efficiency measures and cost optimization, which helped improve profit margins and significantly reduce losses compared with the year-earlier period.

He said the group will continue to focus on improving the performance of its operating activities and enhancing working capital efficiency to support sustainable profitability and improve returns.

Business Portfolio

Regarding the group’s strategy following the completion of its exit from operations in Sudan, Hassan said Savola continues to review its business portfolio and focus on activities and markets that generate value for shareholders.

He added that the exit from non-core operations is part of the group’s strategy to improve capital allocation efficiency and support activities where it has greater growth opportunities and stronger potential to generate sustainable returns.

Hassan noted that the group’s acquisition of Al Mehbaj Al Shamiya for Trading LLC reflects its interest in strengthening its presence in related food activities and supporting its position in the nuts, spices and pulses segments in the Saudi market.

Financing and Outlook

Hassan said the group’s improved financial position and lower net financing costs in H1 2026 reflect Savola’s efforts to manage its debt and liquidity efficiently.

He added that financing costs for the remainder of the year will continue to depend on interest rates, liquidity conditions and the group’s financing needs, while the group remains focused on improving its financing structure and maintaining financial flexibility.

Regarding his outlook for Q3 and H2 2026, the CEO said the group will continue to focus on sales growth, improving operational efficiency and strengthening supply-chain resilience, while monitoring developments in demand, prices of key commodities and financing costs.

He affirmed that Savola Group will continue implementing its strategic priorities, improving the efficiency of its business portfolio and capitalizing on available growth opportunities across its key sectors.