Savola Group net profit drops 22% to SAR 529.55 million as retail competition weighs

Savola Group's net profit fell 22% to SAR 529.55 million in the first nine months of 2026 from SAR 680.42 million a year earlier, as its retail segment posted the group's weakest performance in the third quarter. Argaam reported the figures alongside comments from Group CEO Sameh Hassan.

Hassan Flags Retail Competition And Discount Stores

Hassan said changes in the Saudi market have intensified competition and pushed companies to spend more to defend market share. Panda, Savola's retail chain, held sales at SAR 8.5 billion in the first nine months of 2026 and cut operating expenses by 4%.

The chain kept a 23% share of the supermarket and hypermarket segment. Its e-commerce share rose to between 6% and 6.5%, and online sales grew 150%.

Hassan said Panda is now focused on making existing stores more productive and building customer loyalty rather than adding stores, as its store expansion program nears completion. Customer transactions exceeded 95 million in the nine months, against around 88 million a year earlier, and the loyalty program accounts for approximately 65% of total sales.

Higher shipping, land transportation and insurance costs tied to regional conditions were largely absorbed through operating expense cuts, Hassan said. The group raised prices on some products in selected markets but kept the increases to a minimum.

"This may be the lowest level in Savola's history," Hassan said of net debt, which fell to around SAR 217 million from SAR 600 million last year. Free cash flow reached SAR 521 million, and third-quarter net profit was SAR 128.49 million.

Savola's Food And Retail Footprint

Savola is a Saudi-listed holding company that runs Savola Foods, which makes edible oils, sugar, pasta, nuts and snacks, and Panda Retail Company across the Middle East and North Africa, according to akta.pro company records. The same records put FY 2025 revenue at SAR 26.1 billion, up 13%, and FY 2025 net profit at SAR 874 million, down from SAR 9.97 billion after the absence of a one-off SAR 11.3 billion gain in 2024.

Dividends And Ownership Changes Precede Results

Savola's board approved a 7% cash dividend for H1 2026, equal to SAR 0.7 per share or SAR 210 million in total, Argaam reported, with a record date of November 10, 2026 and payment on November 25, 2026. On August 9, 2026, Savola was notified that Al Muhaidib Holding would transfer 4.59 million shares, a 1.53% stake, to Abdulkadir Al Muhaidib & Sons Co. as part of a portfolio restructuring, Argaam reported.

Savola's first-half 2026 net profit attributable to shareholders rose 36.017% year on year to SAR 401.06 million on revenue of SAR 13,587.59 million, up 3.88%, Sahmcapital reported.

Dividend Dates Set For November

The H1 2026 dividend has a record date of November 10, 2026 and a payment date of November 25, 2026.