Saudi Arabia-based Savola Group has posted a net profit of SR308 million ($82.12 million) in the third quarter of the year, marking a nine per cent growth against the same period last year, said a report.

This raised the net profitability for the first nine months of the year to SR 704 million, while the revenues grew 23 per cent for the first nine month to reach SR18.8 billion, added the report by Al Rajhi Capital.

The food sector (which includes edible oils and sugar as core business operation) continued its solid growth with stable edible oil and sugar prices, while at the same time the profitably of the retail sector remained at the same level, despite the growth in revenues achieved by the sector.

The report also showed that Savola’s exit plan from the non-core business lines is progressing gradually where the company sold its whole stake in some of its real estate assets to Kinan Company which generated SR76 million as capital gains to be added to Savola’s fourth quarter net profit this year.

Al Rajhi Capital granted Savola the highest classification and recommended purchase of its share at a target price of SR32.9 confirming that The Group was able to maintain the target share price adding more profitable investment opportunities at a rate of 26 per cent, therefore maintaining the recommendation to purchase the share.

The report also mentioned that The Group, as part of its strategy to reinforce its core business operations, completed the acquisition of 78 per cent of Al- Malika and Al Farasha, two Egyptian companies specializing in pasta manufacturing, as part of Savola’s strategy to expand its food sector business line. – TradeArabia News Service