Savola Group, Saudi Arabia's largest food products firm by market value, posted a 66.3 percent drop in second-quarter profit after a one-off gain from an asset sale bolstered profit a year earlier. Profit from operations rose 67 percent and Chief Executive Sami Baroum promised stronger growth in sales and operating profit in the third quarter, according to a company statement. Savola made a net profit of 257.7 million riyals ($68.7 million) in the second quarter compared with 763.8 million riyals in the year-earlier period, Savola said in a statement. Savola's earnings were in line with analysts' forecasts which ranged from 250.4 million riyals to 278.9 million riyals in a survey conducted by newswire Reuters last month. The company's profit had fallen in the third and fourth quarters compared with the year-earlier period partly due to lower margins in its home market. Operating profit rose 67 percent to 272 million riyals in the three months to June 30. “This high increase... is due to an improvement the group's performance and the expansions of activities it has implemented both within and outside the Kingdom,” it said. Earlier, the chief executive officer of Savola Group announced that the group has inked an agreement with Technical and Vocational Training Corporation (TVTC). He further pointed out that the agreement is for the launch of Savola's retail academy with branches across Saudi Arabia. The academy will offer certificate and diploma courses to Saudis with the aim of imparting skills in retailing. The academy will admit 2,000 to 3,000 Saudis on a yearly basis and will subsequently increase its number to 5,000. The agreement was signed by the managing director of the Savola Group and TVTC governor.
