Savola was founded in 1979 in the Kingdom of Saudi Arabia with share capital of SAR 40 million and 200 employees. Back then, we were a small-scale company importing and refining vegetable oil for sale on our local market. Like any successful business, however, we had a clear vision for the future: to become the leading strategic investment group for our region and generate profits for our shareholders and investors.
In the decades that followed, dedication led to growth, followed by diversification and expansion. We initially faced fierce competition from established international players, yet were able to carve out a niche for ourselves by listening carefully to our customers’ needs and preferences. We also conducted in-depth research into the commodities market to minimize costs and maximize margins. 1994 saw us enter the sugar market by investing in our first refinery, located in Jeddah. At the time, annual production capacity was 500,000 tons per year. We also expanded our foods sector operations to Egypt, Algeria, the Levant, Iran, Morocco, Turkey, Sudan, and Kazakhstan.
A few years later, in 1998, we made another bold addition to our portfolio by entering the retail sector through the acquisition of the Azizia Panda United group of stores. Already an established brand, we were able to enhance Panda’s positioning and benefit from its real estate holdings. Meanwhile, we also acquired minority stakes in related companies including Almarai, Herfy and Kinan, and made strategic investments in non-core sectors.
Today, after almost four decades since Savola was founded, we let our results speak for themselves: 2015 brought net income of SAR 1.79 billion and earnings per share of SAR 3.36. But we believe that it takes more than profit margins to win over investors. Our commitment to ethical principles, summarized by our brand purpose, “Value Built on Values,” means shareholders know they are dealing with a partner they can trust. We are convinced that these guiding principles are the firm foundations on which we will build the successes of tomorrow.
MESSAGE FROM THE CEO
“Whether you are an investor, a consumer, an employee, or an interested reader, I would like to take this opportunity to personally welcome you to the Savola website. We trust that it will tell you everything you need to know about our leading strategic holding group in the MENAT (Middle East, North Africa and Turkey) region. As you read on, you will gain insight into our investments in the food and retail sector, our vision for the future and the reason why our brand purpose is ‘Value Built on Values.’
Savola was founded in 1979 and the the past four decades have seen us go from strength to strength. Through Savola Foods, our edible oil, sugar, pasta and ghee brands now market products that consumers in 30 countries know and love. Savola Retail manages 448 Panda grocery stores and had a 12.4% market share in the Kingdom of Saudi Arabia in 2015 alone. Alongside this activity, our experts carefully invest funds in other companies to generate additional revenue and shareholder profits.
It is clear that change is the norm for Savola. And the coming years will be no exception to this rule. In 2015, we implemented strategic shifts that have paved the way for a bright future. Savola will gradually adopt an investment holding approach, meaning that we will direct strategy and manage growth while ensuring proper governance and greater autonomy for our subsidiaries. We will also decrease our holdings in non-core sectors over time so that we can focus on what we do best.
As ever, Savola’s vision is bold, insightful and innovative. But there is one thing that never changes: our deep commitment to acting in accordance with ethical principles. This is what set our company apart in 1979 and, as you will discover on our website, what motivates us today.”
Eng. Rayan Mohammed Fayez
Feel free to contact us any time!