Savola Group Corporation
Strategic Management ; Business Policy
I. Company profile
Savola Group Company is a Saudi Arabia-based public shareholding company established in 1979 with an initial SR 40 Million Capital. It is primarily engaged, together with its subsidiaries, in the manufacture and marketing of vegetables oils, food products, retailing, packaging materials and fast food operations. The Company operates through four core business sectors, namely Savola Foods Sector, which deals in edible oils, general food, sugar processing and has investments in dairy companies
II. Current performance
According to the Consolidated Audited financial statement for the Year of 2011, total net operating revenues increased with 19.81%, from SAR 21,029,472 thousands to SAR 25,195,702 thousands. The results of the period increased 35.60% reaching SAR 1,202,376 thousands at the end of the period against SAR 886,702 thousands last year. Return on equity went from 10.79% to 13.26%, the Return on Asset went from 4.99% to 5.98% and the Net Profit Margin went from 4.22% to 4.77% when compared to the same period of last year. The Debt to Equity Ratio was 121.60% compared to 116.46% of last year. Finally, the Current Ratio went from 0.88 to 1.00 when compared to the previous year. Savola currently has market shares of 62% of the Edible Oils market and 68% of the Sugar market in the Kingdom as well as 166 Retail outlets( Supermarkets/Hypermarkets). The Savola Group net profit for the first quarter, 2011 reaches SR165 million compared to the projected net profit of SR 160 million for the period. The Group forecasts net profit of SR 225 million for the second quarter 2011. a. Savola mission
The mission of the company shows the commitment toward the Saudi community to improve the quality of products up to global standards. It is clear the role of Savola in restricting a financial budget toward R &D...