Savola Group posted an 11 percent increase in net income for the second quarter of this year at SR230.7 million, compared to the same period last year at SR207.7 million on growth sales and market expansion, the company said in a statement on Tadawul website Tuesday. It increased 39.6 percent compared to the first quarter of this year at SR165.2 million. Net income for six months ended June 30 amounted to SR395.9 million, decrease of 34.2 percent compared to same period last year SR601.7 million. Gross profit for second quarter amounted to SR963.2 million, an increase of 35.7 percent compared to same period last year SR709.8 million. Operating profit for second quarter amounted to SR423.4 million, an increase of 40.8 percent compared to same period last year at SR300.8 million. Earnings per share for the six months were SR0.79 as compared to SR1.20 for same period last year. Gross profit for six months amounted to SR1.8 billion, or an increase of 20 percent compared to same period last year SR1.5 billion. Operating profit for six months amounted to SR730.1 million, increase of 15.9 percent compared to same period last year at SR629.8 million. Revenues for six months reached SR11.95 billion, increase of 23.8 percent compared to same period last year at SR9.65 billion. Dr. Abdulraouf M. Mannaa, Managing Director of Savola Group, attributed the increase in the group's net income for second quarter 2011 mainly to the continued sales growth and increased market share in the foods and retail sectors. The decrease in net income for six months was mainly due to the capital gain of SR196 million from 30 percent of Herfy Foods Co. IPO (which the group owns a major stake) during first half of 2010. However, the second quarter net income before capital gain reached SR230.7 million is above the forecast, he noted, which was estimated at SR225 million, despite the impact on sales of some countries due to the current situation in the region. Savola expects to achieve a net income before capital gain of SR300 million for third quarter of 2011, he added, is in line with full 2011 forecasted net income before capital gain of SR1 billion. The Group's Board of Directors has also approved to distribute SR125 million, (i.e. 0.25 per share) as dividends for the second quarter, Mannaa said.
