Reasons Behind the Group's Increase in ProfitabilityCommenting on these figures, Dr. Mannaa attributed the increase of profitability during the first three quarters of the year for the period ending September 30, 2012 to good performance of its operations in the Foods sector, continued sales growth, and increased market share in its Retail sector; hence the Group generated revenues of SR20.4bn for the nine months compared to SR18.8bn for same period of last year, and capital gain of SR 46 million due to the sale of Emaar Economic City shares as part of Group's strategy to divest non-core investments. The increase in net income for the 3rd quarter compared to the 2nd quarter of this year is due to the reasons mentioned above as well as the seasonal impact experienced every year during this quarter.
Savola Expects to Achieve SR1.32bn Net Profits for the Full Year 2012Dr. Abdulraouf Mannaa highlighted that the 3rd quarter net income before capital gain and exceptional items reached SR358.4m, which is 5.4% higher than the forecast of SR340m. He also revealed that Savola expects to achieve a net income before capital gain of SR1.32bn for the full year 2012, which is 10% above the original forecast of SR1.2bn.
Savola Distributes SR150m for 3rd Quarter 2012In continuation of its declared policy to distribute quarterly dividends to its shareholders and due to the outstanding net income achieved during the 3rd Quarter 2012, which reached SR405.2m, Dr. Abdulraouf Mannaa, announced that The Savola Group's Board of Directors has approved on Tuesday 16th October 2012 the distribution of SR150m (i.e. SR 0.30 per share) as dividends for the 3rd quarter of 2012, which represents 3% of the company share nominal value. The maturity date for 3rd Quarter dividends will be for all shareholders registered in the company books by the end of the trading date of Monday 22nd October, 2012. The dividends payments process will start as of Saturday 17th November 2012. Therefore, the dividends distributed to shareholders during the 1st and 2nd Quarters plus those to be distributed for the 3rd Quarter of the current fiscal year will reach SR450m, which represents 9% of the company share capital nominal value.
The Savola Group operates in three core sectors: the Food Sector which includes edible oils, sugar, and pasta, the Retail Sector through Al Aziziya Panda supermarkets and hypermarkets, and the Plastics Sector, which manufactures both rigid & flexible plastic products. In addition, the group has a diversified portfolio of strategic investments in which it owns 29.9% of Al-Marai fresh diary company, 49% of Herfy foods & restaurant chain, and 29.9% of Kinan International real estate. The Savola Group is also one of the founders of Knowledge Economic City in Al-Madinah Al-Munawarah. The Group previously declared a record net profit from operations for the year 2011 amounting to more than SR1bn, an increase of 35% as well as announcing its forecast of net Income of SR1.2bn (before capital gains) for the year ending 2012.