Savola profit sinks 46% in Q1 2025 to SAR 189.2M

07/05/2025 Argaam Exclusive

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Savola Group’s net profit fell 46% in Q1 2025 to stand at SAR 189.2 million, compared to SAR 348.7 million in Q1 2024.



Current Quarter Comparison (M)

Compared With The
Item Q1 2024 Q1 2025 Change‬
Revenues 7,147.41 7,597.29 6.3 %
Gross Income 1,499.39 1,426.21 (4.9 %)
Operating Income 515.73 377.42 (26.8 %)
Net Income 348.71 189.16 (45.8 %)
Average Shares 241.05 300.00 24.5 %
Earnings Per Share before unusual items (Riyal) 1.45 0.63 (56.4 %)
EPS (Riyal) 1.45 0.63 (56.4 %)

The company attributed the profit drop during Q1 2025 to the discontinuation of the group’s share of profits from its previous investment in Almarai Co., amounting to SAR 236.7 million, after it distributed its entire share in Almarai to eligible group shareholders. This was partially offset by a reduction in financing costs (FCs) resulting from debt repayments made in 2024, which totaled SAR 89.6 million.

 

Savola reported a decrease in net profit in the food manufacturing segment from SAR 174 million in Q1 2024 to SAR 154 million in Q1 2025, impacted by the return of profit margins in the edible oils segment in the Saudi market to normal levels. The segment decline occurred despite the lack of foreign exchange losses that were recorded in Q1 2024, at SAR 109 million due to the depreciation of the Egyptian pound.

 

The profit was affected by the weaker performance in the food services business (Herfy), shifting from a net profit of SAR 0.4 million in Q1 2024 to a net loss of SAR 18.6 million in Q1 2025.

 

Additionally, Savola witnessed an increase in operating expenses (OpEx).

 

Meanwhile, it posted a 6% increase in revenues, driven by a 4% rise in revenues in the retail segment and higher revenues in the food manufacturing segment.

 

The company realized an increase in the retail segment’s net profit to SAR 39 million in Q1 2025, mainly due to the positive impact of the CXR program.

 

It witnessed an improvement in the group’s share of results from associate companies (excluding Almarai and the United Sugar Company of Egypt (USCE), as it turned from an adjusted share of loss of SAR 1.6 million in Q1 2024 to a share of profit of SAR 10.4 million in Q1 2025.

 

The first quarter profit slumped 98% from SAR 9.3 billion in Q4 2024, due to the absence of a one-off gain of SAR 11.3 billion recorded in Q4 2024 from the distribution of Savola’s entire 34.52% stake in Almarai to eligible shareholders.

 

In addition, the retail segment posted lower earnings quarter-on-quarter.

 

Total shareholders’ equity, after excluding minority interest, stood at SAR 4.79 billion by March 31, 2025, compared to SAR 8.41 billion a year earlier.

 

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