Saudi Arabia's Savola 2Q Net Pft Up 48%, Beats Expectations

Saturday, Jul 21, 2012

RIYADH (Zawya Dow Jones)--Saudi Arabian food company Savola Group on Saturday beat analysts' expectations as it reported a 48% jump in second-quarter net profit, citing stronger sales.

Savola's second-quarter net profit rose to 341.3 million Saudi riyal ($90.3 million) from SAR230.7 million for the same period of 2011, according to a statement on Saudi stock exchange.

EFG Hermes analysts had predicted SAR310 million in second-quarter net profit, while NCB Capital had forecast SAR320 million.

The profit increase reflected "a turnaround in profitability of its operations in the food sector, continued sales growth, and increased market share in the retail sector," Savola said.

Operating profits for the second quarter reached SAR603.8 million, compared to SAR423.4 million in the same period last year, the company said.

Earnings per share averaged SAR1.17 for the first six months of this year, up from SAR0.79 in the first six months of 2011, it added.

Savola shares closed at SAR33.5 on Wednesday.

Savola in a separate statement said it would distribute SAR150 million, or SAR0.30 per share, in dividends for the second quarter to its shareholders.

-By Ellen Knickmeyer, Dow Jones Newswires, +971 55 1093359, ellen.knickmeyer@dowjones.com; Twitter: @ZDJnews

(END) Dow Jones Newswires

21-07-12 0807GMT