Savola Group, an integrated food platform in the food and retail sectors across the Mena region, has seen its nine-month net profit attributable to shareholders reach SR530 million ($141.3 million), with recurring net profit, adjusted for non-recurring items, increase 26% to SR500 million.

For the first nine months, revenue increased 3.1% year-on-year to SR20.1 billion. EBITDA increased 5.4% year-on-year to SR1.9 billion, supported by disciplined cost management, with EBITDA margin of 9.4%, supported by a reduction in operating expenses. 

The Board of Directors has approved the distribution of interim cash dividends to shareholders for the first half of 2026 of SR210 million ($55.9 million), equivalent to SR0.70 per share. This comes in light of the announced Dividend Distribution Policy, which provides for the distribution of cash dividends in the range of 50% to 60% of the net profit achieved.

Food Processing led performance, with strong volumes, disciplined pricing and cost management supporting growth and margin expansion despite higher regional logistics and input costs. 

Panda maintained broadly stable revenue and continued to scale its e-commerce proposition, although competitive pressure weighed on margins and profitability. Frozen Food and Food Services delivered improved profitability, supported by stronger margins.

Third quarter revenue 

Third quarter revenue increased by 1.5% year-on-year to SR6.5 billion, with EBITDA of SR576 million and an EBITDA margin of 8.8%. Net profit attributable to shareholders was SR128 million, compared with SR386 million in Q3 2025, which included SR257 million of non-recurring gains, primarily from the reversal of prior-year zakat accruals. On a recurring basis, net profit1 was broadly stable at SR127 million, compared with SR129 million in the prior year. 

Sameh Hassan, Savola Group CEO, said: "Our nine-month results demonstrate the resilience of Savola’s food platform. Regional developments brought heightened logistical challenges across our raw-material supply chain, significantly higher insurance premiums and a more cautious consumer environment. Despite this, we continued to deliver volume growth and improved profitability, with record edible oil volumes and a 26% increase in recurring net profit. Our teams maintained continuity of supply and protected margins through disciplined pricing and cost management. In Retail, the market remains highly competitive. Panda continued to grow its digital proposition and invest selectively in its store network while maintaining cost discipline, as restoring margins and improving returns remained key priorities. With a strong balance sheet and low leverage, we are well positioned to strengthen our supply-chain resilience and local manufacturing capabilities, enhance our customer proposition and continue to allocate capital with discipline."

Nine-month performance highlights

Food Processing delivered volume-led growth: Revenue increased by 6.6% year-on-year to SR10.5 billion, with volume growth contributing SR891 million (+9.1%), more than offsetting softer sugar prices globally and in Egypt. Segment net profit increased 66% to SR454 million.

Panda maintained resilient top line amid competitive market: Revenue was stable at SR8.5 billion and online sales grew approximately 2.5x. EBITDA remained stable at SR768 million, while margin pressure and higher network expansion-related costs reduced recurring net income to SR28 million.

Frozen Food and Food Services delivered improved profitability: Al Kabeer’s net profit increased 17.8% year-on-year to SR45 million, supported by stronger gross margins. Herfy reported net income of SR2 million, compared with a net loss of SR66 million in the prior year. 

Strong cash generation supported by further deleveraging: Net debt declined to SR217 million at 30 September 2026, while operating cash flow funded SR554 million of capex and SR541 million of dividends, reflecting Savola’s disciplined approach to capital allocation.—TradeArabia News Service