Savola Group has announced that its profits for first-half 2000 dropped 11.6 per cent to SR80.1 million ($21.3 million), compared to SR90.6 million during the same period last year. [QQ]It said the decline was the result of seasonal fluctuations in the market and predicted the effects would disappear during the next six months.

The sales during the first half were SR1.06 billion, compared to SR1.3 billion in the same period last year.

Savola chairman and managing director Adil Faqeeh said it was considering large investments over the coming years. The group hopes to achieve its long-term goal of SR5 billion in sales and SR500 million in profits by the end of 2005.

Faqeeh said the United Sugar Company (USC), in which Savola has a large stake, would increase annual production from 520,000 tonnes to 765,000 tonnes by the end of 2002. USC last month agreed for a SR140 million loan to enable the company to carry out its expansion plan. The increase in production is intended to meet the growing demand and reduce production costs.