Savola Q2 Income Dips But Sees Bright Q3

Saudi Arabia's Savola Group reports that its Q209 (through to June 30 2009) year-on-year (y-o-y) earnings dipped 17.5% to SAR212.5mn (US$57mn). The company blames much of the dip on provisions made on a minority stake held in a Saudi property company. BMI notes that the decline in earnings is exaggerated by the high base of Q208. Instead, we point out that Savola's Q209 earnings mark its first foray above the SAR200mn mark since Q208. With a large portfolio of assets across the food and mass grocer retail industries, Savola should capitalise on BMI's forecast that through to 2013, food consumption

To read the full article, please choose one of the following options: