Saudi's Savola Group eyes acquisitions of food companies in Egypt, other markets

Riyadh –   Savola Group ended 2020 with robust financial results on the back of strong sales in the Saudi and Egyptian markets in the first year of its 2020/2024 plan, Mohamed Badran, the CEO of Savola Foods Egypt, said.

Under its five-year strategy, the company aims to expand in its eight existing markets, particularly Saudi Arabia and Egypt, through the acquisition of existing entities and the launch of new products, Badran said in an interview with Mubasher.

The Jeddah-based company generated sales of more than $3 billion last year, he revealed.

The Egyptian unit came in the second position in terms of market share, profits, and sales of Savola Group, he noted.

The company is looking to increase its overall sales to exceed the generated sales in the last five years, along with expanding its market share.

Badran further revealed that Savola faced many challenges last year due to the coronavirus (COVID-19), especially that a large part of its sales was directed to hotels, restaurants, and schools that were hardly hit by the pandemic.

However, the group managed to meet consumer demand by launching new products and achieving high earnings and sales.

The Egyptian and Saudi markets were the largest supporters of the group among the eight markets in which the company operates 14 factories.

In its plan, Savola Egypt seeks to enter the bakery sector and acquire a larger market share in the tuna product in Egypt and other countries, he added.

The company also aims to acquire a majority stake in existing food factories that generate high earnings, especially in the Egyptian market, in 2021. The potential acquisitions are still under consideration.

As a manufacturer of margarine, sugar, oils, pasta, tuna, and bakery products, the company plans to acquire factories that make other products.

Established in 1979, Savola, listed on the Saudi Stock Exchange (Tadawul) since 1993, operates within the food, beverage, and tobacco sector.

It owns 100% of seven companies: Madarek Investment, Arabian Al Utur Holding Company for Commercial Investment, Utur Packaging Materials Co Ltd, United Properties Development Co, Savola Foods Co, Adeem Arabia Co Ltd, and Good Food Co Ltd.