Saudi food group Savola posts 50% rise in Q1 profit to $76m

07/05/2026 01:36 AST

Saudi food and retail group Savola posted a 50.4 percent jump in first-quarter profit, helped by stronger performance in its food processing business and a gain from the disposal of its Sudan operations.

The Tadawul-listed company reported net profit of SR285 million ($75.9 million) for the three months ending March 31, according to a stock exchange filing.

The earnings increase was supported by a SR43 million non-recurring gain tied to the disposal of its Sudan business, booked under discontinued operations.

Revenue was largely unchanged at SR7.29 billion, compared with SR7.28 billion in the same period of 2025, although sales rose 11.3 percent from the previous quarter on seasonal demand.

In a Tadawul statement, the firm stated: "The increase in revenues was mainly driven by seasonal consumption patterns, resulting in higher revenues across the food processing, retail, and frozen foods segments, partially offset by a decline in the Food Services segment."

Savola said comparative-period revenue excluded the results of its deconsolidated Turkiye business in line with International Financial Reporting Standards.

Growth within the food processing division was offset by softer performance elsewhere. The retail segment posted marginally lower revenues amid competitive market pressures, though new store openings and rising e-commerce sales partially cushioned the decline.

Both the food services and frozen foods segments also recorded lower revenues compared to the first quarter of 2025, with frozen foods citing market conditions as the primary headwind.

At the segment level, food processing was the standout performer. Net profit from the division rose to SR219 million, up from SR130 million in the first quarter of 2025, driven by "higher revenues, improved margins, as well as enhanced cost efficiencies."

The retail segment recorded a modest improvement, with net profit edging up to SR40 million from SR39 million a year ago, despite elevated operating costs tied to new store ramp-up phases and continued investment in its Customer Experience Revival program.

The food services segment narrowed its losses significantly, reporting a net loss of SR4 million compared to a SR19 million loss in the first three months of 2025. Frozen foods remained modestly profitable but slipped marginally, with net profit dipping to SR23 million from SR24 million.

Total shareholders' equity stood at SR5.71 billion as of March 31, up 19 percent from SR4.80 billion at the end of the first quarter of 2025, reflecting retained earnings growth and the ongoing streamlining of the group's portfolio.

Arab News