| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
434.4
|
564.2
|
-
|
701.4
|
-
|
| Gross profit (loss) |
1,351.6
|
1,066.3
|
26.76
|
1,150.7
|
17.46
|
| Operational profit (loss) |
634
|
548.4
|
15.61
|
648.2
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
2,072.3
|
1,704.5
|
21.58 |
| Gross profit (loss) |
4,846.6
|
4,773.5
|
1.53 |
| Operational profit (loss) |
2,484.1
|
2,489.7
|
- |
| Earning or loss per share, Riyals |
3.88
|
3.37
|
- |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The decrease in the Group net income for 4th Q 2014 compared to the same quarter last year is attributed mainly due to the capital gain of SAR 231.4 million resulting from the sale of the Groups stakes in the lands in Al-Madinah Al-Munauwarah to Knowledge Economic City Company during the 4th quarter last year and the Group also booked impairment provision of SAR 67.4 million for its investment in Intaj Capital and Swicorp Joussour Company reflected in the results of this Quarter. This decline is despite the continued growth in revenues and increased market share of Retail Sector and positive impact of reduced financial charges increased zakat and income tax and minority interests. Gross Profit and operating profit have increased mainly due to continued growth in revenues and increased market share of Retail Sector and improved performance of Foods Sector, and the impact of accounting treatment on the Group operations in Iran and Sudan which are considered as hyper inflationary economies for the year ended December 31, 2013, whereby adjustments were made in all the line items of balance sheets and income statements of those operations and full year impact were recognized in Q4 2013 financials of the Group. As announced on Tadawul, Group signed an Agreement with a third party for disposal of Savola Packaging Systems Company (SPS) which represents Group's plastic segment. Accordingly, all assets and liabilities of SPS have been classified as (held for sale) in the December 31, 2014 interim consolidated balance sheet and also all amounts of income statement related to SPS have been reclassified and net income of SPS for the year ended December 31, 2014 has been disclosed as (Income from discontinued operations) in the interim consolidated income statement. In accordance with the generally accepted accounting standards in Saudi Arabia, all amounts relating to SPS in the 2013 consolidated income statement have also been reclassified as (Income from discontinued operations) |
| Reasons of increase (decrease) for period compared with same period last year | The increase in the net profit for the period (twelve month) of 2014 compared to same period of last year is attributed mainly due to continued growth in revenues and increased market share of Retail Sector, the increased share of income from associates, lower zakat and tax, minority share, lower income from discontinued operations despite increase in financial and operating expenses. The Group booked impairment provision of SAR 67.4 million for its investment in Intaj Capital and Swicorp Joussour Company reflected in the results of this period. As indicated above, the Group previously announced on Tadawul the signing of an agreement with a third party for disposal of Savola Packaging Systems Company (SPS) which represents Group's plastic segment. Accordingly, the assets and liabilities of SPS have been classified as (held for sale) in the December 31, 2014 interim consolidated balance sheet and net income of SPS for the year ended December 31, 2014 has been disclosed as (Income from discontinued operations) in the interim consolidated income statement. In accordance with the generally accepted accounting standards in Saudi Arabia, amounts relating to SPS in the 2013 consolidated income statement have also been reclassified as (Income from discontinued operations) |
| Reasons of increase (decrease) for quarter compared with previous quarter | The decrease in the Groups profit for 4th Q 2014 compared to 3rd Q 2014 is mainly due to the capital gain recorded by the Group amounting SAR 187.5 as result of disposal of its entire stake in Masharef Real Estate Project executed during previous quarter. Also share of income from associates are lower than last quarter. Gross Profit has increased due to continued growth in revenues and increased market share of Retail Sector and improved performance of Foods Sector whereas the operating profits have decreased mainly due to lower share of income from associates despite lower operating expenses. Also the impairment provision in Q4 2014, higher zakat and Tax, increased minority interest; lower financing cost compared to previous quarter also impacted the Group profit. |
| Reclassifications in quarterly financial results | Certain comparative figures have been reclassified to conform to this quarter presentation. |
| Other notes | In this connection, the Savola Group MD & CEO indicated that, Group has recorded net income for full year of 2014 amounting to SAR 2.07 Billion compared to SAR 1.7 Billion last year, an increase of 21.6%. Whereas, the Group's net income (before capital gain & exceptional items) reached to SAR 1.93 Billion which is 23% higher than last year and 7.2% higher than the forecast of SAR 1.8 Billion announced on Tadawul on 20th January 2014 based on strong retail performance and good performance by the sister companies. It is worth mentioning that the earnings per share for the twelve months periods ended December 31, 2014 has been computed by dividing the net income attributable to shareholders of the Company for such periods by the number of shares outstanding during such periods. Earnings per share for the year 2013 has been calculated by using weighted average number of shares outstanding 505.663 million shares by taking the first ten month as 500 million shares and for the last two months of the year as 533.980 million shares (after the capital increase) which took place in November, 2013. |
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