Savola Group, an integrated food platform in the food and retail sectors across the MENA region, has reported that its revenue for the second quarter increased by 8.6% to SAR6.3 billion ($1.68 billion) and net profit attributable to shareholders increased by almost 10% to SAR117 million, and almost 67% to SAR129 million on a recurring basis.
For the first half, revenue increased 3.9% to SAR13.6 billion ($3.62 billion) and net profit attributable to shareholders increased 36% to SAR401 million ($106.86 million), and 40% to SAR372 million on a recurring basis, excluding the one-off items set out below.
Performance was driven by solid results across the different sectors. In food processing, growing volumes, disciplined cost control and supply-chain agility kept Savola’s range of staple food and everyday products reliably available across our markets despite higher freight, insurance and energy-linked logistics costs. In retailing, Panda continued to grow revenue and market share of the Hypermarkets and e-commerce segments.
The frozen food and food service sectors both reported improved profitability behind strict cost optimization programs. This strong operating performance lifted first-half EBITDA margin by 70 basis points to 9.7% and reduced operating expenses to 14.5% of revenue from 15.2%.
Sameh Hassan, Savola Group CEO, said: “Our first-half performance reflects the resilience of Savola’s food and retail platforms and the discipline of our teams. Our priority throughout the period for foods sector was clear: to maintain dependable availability of staple food products for consumers across the markets we serve while navigating a more complex regional geopolitical and logistics environment. In retail, the expansion of our store network progressed as planned, while our digitalization and e-commerce initiative continued to scale up — broadening how and where we serve our customers. Overall, disciplined commercial execution and fit-for-purpose efficiency initiatives helped us improve underlying earnings while continuing to invest in supply-chain resilience, local manufacturing capability and the customer proposition.”
Key highlights for six-month period
Food Processing led growth: First-half revenue increased by 7.5% to SAR6.9 billion, with volume contributing SAR757 million (+11.7%), offsetting the impact of lower average selling prices linked to softer global prices for some commodities, especially in sugar.
Panda maintained resilient performance in a value-focused retail market: revenue increased almost 1% to SAR5.9 billion and EBITDA rose approximately 4.5% to SAR524 million, supported by operating efficiencies, continued investment in the customer proposition and e-commerce scaling approximately 2.5x year-on-year.
Balance sheet strength was maintained: net debt was SAR851 million at 30 June 2026, compared with SAR960 million a year earlier, after funding SAR385 million of capital expenditure and dividend of SAR524 million, including to non-controlling interests, were paid, during the period.
Portfolio focus advanced during the period where the Group completed its exit from Sudan for a total consideration of SAR52.5 million and, subsequent to the period end, acquired Al Mehbaj Al Shamiya for Trading LLC to support the development of its Nuts, Spices and Pulses platform in Saudi Arabia. – TradeArabia News Service