Savola Group, one of Saudi Arabia’s leading retail and food holding companies, has issued its fourth quarter and full year 2016 financial results.
Sulaiman A.K. Al-Muhaidib, chairman of Savola Group, said: “2016 was a year of important changes across the group.”
He added: “Importantly, our management team has proactively taken decisive action to address underperformance in our retail division through a carefully thought-through transformation program.”
He said: “In the food segment, while we had to take losses due to the currency devaluation in Egypt and other charges, the underlying fundamentals remain strong.”
The chairman said: “Looking ahead, our focus continues to be improving customer experience in our retail business and enhancing our productivity. As the macro-economic situation slowly improves, we are well-positioned to capitalize on growth opportunities.”
The group reported revenues of SR25 billion in 2016 as compared to SR25.1 billion in 2015.
The lack of growth in revenue was mainly due to the underperformance of the retail segment, exacerbated by the macro environment in Saudi Arabia, a company press release said.
The overall net loss for 2016 was SR451 million, compared to net profit of SR1.792 billion for 2015.
The company reported a number of exceptional one-off items that negatively impacted profitability.
Excluding these charges and the exceptionally high currency losses incurred last year, adjusted net profit for 2016 was SR810 million compared to adjusted net profit of SR1.480 billion in 2015.
Earnings per share were negative at SR0.85 and cash and cash equivalents stood at SR1.3 billion at the end of the year, according to the release.
In the fourth quarter of 2016, Savola reported revenues and a net loss of SR6.2 billion and SR964 million respectively. It recorded revenues of SR6.3 billion and a net profit of SR515 million in the fourth quarter of 2015.
Last year’s revenue was SR13.5 billion, in line with the same period last year. New store openings, coupled with a decline in Like for Like (LfL) sales, contributed to the revenues.
The decline in gross margins is partly due to the costs associated with inventory reduction.
The net loss was SR773 million compared to a profit of SR146 million in 2015. The normalized loss was SR396 million, the release added.
The average retail selling space increased by 1 percent in 2016 as 18 new stores were added across Saudi Arabia.
The strategy for Panda Retail Company over the last several years was to expand aggressively across Saudi Arabia.
The business has built up an extraordinary infrastructure, manifested by its leading store count and unique distribution capability in Saudi Arabia.
A portion of the operating losses in 2016, around SR106 million excluding closure costs, was associated with the convenience format, Pandati.
The format is being reconfigured through store closures and layout changes, the release added.
Savola Group to capitalize on growth opportunities
Savola Group to capitalize on growth opportunities
Alfanar Engineering signs MoU with Schneider Electric Saudi Arabia
Alfanar Engineering Services announced the signing of a strategic MoU with Schneider Electric Saudi Arabia during its participation in the Saudi Arabia Smart Grid Conference. Both Schneider Electric and Alfanar Engineering have committed to further enhancing operational excellence and customer-centric service delivery thereby ensuring long-term asset reliability of their clients in the Kingdom.
Alfanar Engineering brings to the collaboration a strong in-Kingdom service footprint, supported by extensive operations and maintenance capabilities, advanced testing and commissioning equipment, and a network of specialized service centers and labs strategically located across Saudi Arabia. These capabilities enable the delivery of responsive, high-quality technical support tailored to the needs of critical infrastructure and industrial operations. Schneider Electric, with its extensive installed base of energy management and automation solutions, plays a key role in supporting mission-critical facilities and national industries across the Kingdom.
The collaboration was signed by Sattam Al-Motairi, chief operating officer of Alfanar Engineering Services, and Mohamed Shaheen, cluster president — Saudi Arabia, Schneider Electric. It brings together Alfanar’s local operational expertise and service reach with Schneider Electric’s global technologies and service standards. Together, the two companies will enhance service reliability, improve response efficiency, and deliver greater value through sustainable solutions that optimize asset lifecycles. The MoU also supports the development of localized technical services, contributing to the Kingdom’s objectives for sustainable infrastructure, localization, and industrial resilience.
Al-Motairi said: “At Alfanar Engineering Services, we believe that true value is created long after equipment is installed, through reliable service, fast response, and teams that understand the realities of the field. This collaboration with Schneider Electric enables us to enhance the delivery of after-sales services across the Kingdom, combining deep local expertise with world-class technology. Our focus is clear: keeping critical operations running, supporting our customers’ long-term success, and contributing meaningfully to Saudi Arabia’s industrial and infrastructure ambitions.”
Oday Al-Aithan, vice president of field services for Schneider Electric in Saudi Arabia, Pakistan, Yemen, and Bahrain, said: “At Schneider Electric, we are turning advanced energy management and digital solutions into tangible outcomes through our partnership with Alfanar Engineering Services. By combining our integrated technologies, extensive installed base, and global expertise as a leading energy technology partner with Alfanar’s strong in-Kingdom field services, we deliver smarter, faster, and more reliable solutions that optimize asset performance, accelerate response times, and support resilient, sustainable infrastructure, contributing to the Kingdom’s Vision 2030.”
