Saudi Savola faces 171m riyal hit from Egypt pound float

Saudi Arabia’s Savola Group , the country’s largest food products company, said yesterday that the floatation of the Egyptian pound will hit its fourth-quarter results by 171 million riyals ($45.6 million). It said that it had taken measures over the past year that significantly decreased the impact of the Egyptian pound devaluation on its business, without elaborating. Savola’s products in the North African country include edible oil and vegetable ghee, sugar and pasta. The central bank floated the pound on Thursday, abandoning a peg of 8.8 pounds to the dollar and letting the currency drift down to around 16 on Sunday. Many bankers think more depreciation is possible.