Savola Q1 Earnings Beat Consensus

Diversified Saudi conglomerate Savola Group has comfortably outperformed consensus (analysts polled by Reuters) by posting a 104.15% year-on-year (y-o-y) increase in net income to SAR394mn (US$105.07mn). Although the headline figure was significantly inflated by capital gains from the Q110 initial public offering of Savola's Herfy fast food unit, the exclusion of these gains would still have brought about an increase that would have surpassed the group's own consensus by 10%. While we continue to see considerable room for growth across its core segments domestically, BMI believes that Savola's non-reliance on Saudi Arabia stands it in particularly good stead as regional

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