In addition to our managed investments in the food and retail sectors, we also pursue capital growth through our portfolio of non-managed investments. The largest contributors to Savola –net income was Almarai (in which we own a 34.52% stake). In addition, our investments in Herfy Food Services Company (49%) and Kinan International Company for Real Estate Development (29.9%) have also impacted our net income positively.
Almarai is a listed joint stock company with outstanding performance in food sector.
In 2017, Almarai achieved revenues of SAR 13,936 million for the year and gross profit of SAR 5,584 million, compared to 2016’s SAR 5,522 million. Diluted earnings per share, based on net income attributable to shareholders, rose from SAR 2.08 to SAR 2.11, yielding a contribution of SAR 762 million to Savola’s net income.
Herfy Food Services Company
Herfy Food Services Company operates a chain of fast food restaurants in Saudi Arabia and neighboring countries.
In 2017, Herfy recorded sales of SAR 1,157 million, a 0.08% increase over 2016. Gross profit of SAR 341.7 million was 8.36 percent higher than the previous year yielding a contribution of SAR 105 million to Savola’s net income.
Herfy shareholders approved a 40% capital hike to SAR 646.8 million through the issue of two bonus shares for every five shares held. The company also commissioned operations of its first Herfy branch in Bangladesh, which is set to grow to 30 branches in the country over the coming years. Sustained growth and yields are expected, due to the company’s market position as a leader in convenience, menu options, and value.
Kinan International Company for Real Estate Development
Our 29.9% stake in Kinan is one of a number of real estate investments. We believe that diversifying our portfolio is a crucial tool for managing risk in an uncertain market context.
Private equity investments
We are also currently invested in Swicorp (15%), Swicorp Joussour Fund (15%) and Intaj Capital Limited Fund (49%) among others.
Feel free to contact us any time!