(MENAFN Press) In a recently issued report, Al Rajhi Capital stated that The Savola Group is showing significant improvement and growth in its 3rd quarter results of 2011 compared with the same period of last year. The Report stated that the Group showed a 23% growth in its revenues for the first nine month to reach SR18.8 Billion and net profits grew by 9% for 3rd quarter to reach SR 308 million raising the net profitability for the first nine month of the year to SR 704 million.
The Food Sector (which includes Edible Oils and Sugar as core business operation) continued its solid growth with stable edible oil and sugar prices, while at the same time the profitably of the Retail Sector remained at the same level, despite the growth in revenues achieved by the sector.
The Report also showed that Savola's exit plan from the non-core business lines is progressing gradually where the Company sold its whole stake in some of its real estate assets to Kinan Company which generated SR 76 million as capital gains to be added to Savola's 4th quarter net profit this year.
Al Rajhi Capital granted Savola the highest classification and recommended purchase of its share at a target price of SR 32.9 confirming that The Group was able to maintain the target share price adding more profitable investment opportunities at a rate of %26, therefore maintaining the recommendation to purchase the share.
The report also mentioned that The Group, as part of its strategy to reinforce its core business operations, completed the acquisition of 78% of Al- Malika and Al Farasha, two Egyptian companies specializing in Pasta manufacturing, as part of Savola's strategy to expand its Food Sector business line.