Saudi food producer Savola has slashed its dividend after announcing an 80% fall in first-quarter profits year-on-year, with food revenues falling 8.6%, brought down by its edible oil operations.
Savola’s full-year profits were down 13.5% on 2014 at US$478m thanks to a subsidiary sale, as Q4 profits beat analyst predictions, and the firm announced a new CEO appointment.
Saudi food giants Savola and Almarai reported very different Q3 results, with Savola’s profit dropping 47% to US$99m, and Almarai’s up 10.3% at US$158.7m, but both missing analyst’s forecasts.
The Savola Group saw profits fall 15% in its second quarter, and warns full-year profits could be down 10%, because of oversupply of commodities and a larger retail sector.
Saudi food producer Almarai announced a 22.4% rise in profits to reach US$141m for its second quarter, with increased sales, but also a US$87.5m write-down of its subsidiaries.