Saudi Savola posts 8.8pct rise in Q3 net profit

Saudi Savola Group posted an 8.8 per cent rise in its third-quarter net profit on Monday, beating some analyst forecasts, after it increased sales and market share in the food and retail sectors, it said in a bourse statement.

The firm made a net profit of 307.9 million riyals ($82 million) in the three months ending September 30, compared with 283m riyals in the same period a year earlier, the statement said.

Analysts surveyed by Reuters expected the firm to post on average 302 million riyals in the third-quarter.

Savola also said it plans to issue a dividend of 0.25 riyals per share for the third quarter profits and still expects this year's profits, before capital gains, to reach 1 billion riyals.

"The net profit increase for the third quarter compared to the third quarter a year earlier is mainly due to the continued growth in sales and market share in the food and retail sectors," Savola said in the statement.

"The group expects to post a fourth quarter net profit, before capital gains, of 296m for the fourth quarter, which is in line with the firm's expectations for 2011 net profit of 1bn riyals before capital gains," it said.

Operational profit for the third quarter increased by 10.7 per cent to 471.8m riyals, compared with 426.2m riyals in the same period a year earlier.