Riyadh – Mubasher: Savola Group on Thursday announced it had incurred losses in the fourth quarter of 2016 due to a decline the value of some of its assets as well as the valuation of its operations in Egypt.
Moreover, a decline in Savola’s Panda Retail inventory, a lower share of income from an associate, higher financing expenses and increased losses from its Egyptian Subsidiary contributed to the year-on-year losses in Q4-16.
Savola’s losses reached SAR 964.3 million ($257.15 million) in Q4-16 against profits of SAR 515.3 million ($137.38 million), according to a filing to the Saudi Stock Exchange (Tadawul) on Thursday.
Non-recurring items booked in Q4-16 included an impairment of assets and goodwill related to Savola’s operations in Egypt in Savola Foods Company, reaching a gross of SAR 302 million, which impacted the Group with SAR 245 million were among the reasons behind the losses, the statement showed.
The company incurred the losses during Q4-16 despite a slight decline in operating expenses due to lower cost of sales and distribution in the food and retail sectors, Savola said.
Another net positive impact during the fourth quarter was the reinstatement of the classification of edible oil subsidiary of Savola Foods Company in Morocco of SAR 26 million, it said.
For the full year 2016, the consumer products company reported a loss of SAR 451.3 million against a profit of SAR 1.79 billion in 2015.
