| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
173.4
|
371.6
|
-
|
246.7
|
-
|
| Gross profit (loss) |
1,157.4
|
1,238.9
|
-
|
1,289.6
|
-
|
| Operational profit (loss) |
311.3
|
494
|
-
|
414.2
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
513
|
1,276.4
|
- |
| Gross profit (loss) |
3,670.1
|
3,751.3
|
- |
| Operational profit (loss) |
1,011
|
1,407.2
|
- |
| Earning or loss per share, Riyals |
0.96
|
2.39
|
- |
| 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 3rd Quarter 2016 compared to same quarter last year is mainly due to lower gross profit, higher operating expenses, increased financial charges, higher zakat & tax despite decrease in share of minority and higher share of income from associates.Gross profit decrease is mainly due to lower margins in Retail sector. Increase in operating expenses is mainly due to opening of new stores and new distribution center in the Western region in Retail sector. Increased financial charges are due to higher currency exchange losses. Furthermore higher losses in USCE (classified as discontinued operations) is mainly due to lower margins despite reduced currency exchange losses negatively impacted the Group profit. |
| Reasons of increase (decrease) for period compared with same period last year | Reduction in the Group net income for the period ended 30 September 2016 compared to the same period last year is attributed also to capital gain recorded from disposal of Savola Packaging Systems Co. during Q1 of 2015, increased financial charges and operating expense, higher zakat and income tax, despite increased share of net income from associates and positive impact of reduced minority interests. Higher losses from USCE due to currency exchange and lower margins also impacted Group net income negatively.Gross profit reduced for the period compared to the same period of last year despite growth in revenues in Retail sector. Foods sector revenue was lower and higher cost of revenues in Food and Retail Sector also impacted the gross profit negatively. Operating income was lower compared to same period last year due to increased operating expenses which is mainly driven by growth in Retail operations. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The decline in the Group's net income for 3rd Quarter 2016 compared to 2nd Quarter 2016 is mainly due to lower revenue and gross profit (which is a result of seasonality), despite increased share of income from associates. Operating expenses, financial charges have reduced compared to previous quarter, whereas the Zakat and Tax and minority share in income has increased. The losses from USCE are lower as compared to the previous quarter mainly due to lower currency exchange losses. |
| Reclassifications in quarterly financial results | Certain comparative figures have been reclassified to conform to this quarter presentation. |
| Other notes | As announced on Tadawul on 29th March 2016, Savola Group (Savola) and other shareholders' of United Sugar Company - Egypt (USCE - an indirect subsidiary of Savola) have entered into a Shareholders' Agreement with European Bank for Reconstruction and Development (EBRD). Therefore, subsequent to the issuance of new shares and completion of the related legal formalities and government approvals, Savola will account for its investment in USCE on equity basis of accounting.Till such time, in accordance with the generally accepted accounting standards in Saudi Arabia, the assets and liabilities of USCE as of September 30, 2016 have been classified as (held for sale) in the interim consolidated balance sheet and results of operations of USCE for the nine-month period ended September 30, 2016 has been disclosed as (loss from discontinued operation) in the interim consolidated income statement. Also the amounts relating to USCE for the nine-month period ended September 30, 2015, have been reclassified as (loss from discontinued operations) in the interim consolidated income statement.Eng. Rayan Fayez - Group Chief Executive Officer, highlighted that the Group's quarterly results were negatively impacted by aggressive expansion in Retail sector in prior periods which resulted in higher operating expenses coupled with lower consumer spending. Efforts are also underway to mitigate the impact of currency devaluation on Food Sector operations. We pray to God Almighty to help us in achieving our long term goals. The Gross revenue/ sales for Q3 reached SAR 5.85 Billion compared to SAR 5.60 Billion for the same quarter of last year an increase of 4.46% whereas the gross revenue/ sales for the period reached SAR 18.76 Billion compared to SAR 18.86 Billion for the same period of last year representing a decrease of 0.53%.The equity attributable to shareholders of the parent company (without minority interst) for the period reached SAR 10.17 Billion compared to SAR 10.27 Billion for the same period of last year representing a decrease of 0.97% We would like to inform the investors that the interim consolidated financial statements of the Group for the period ended September 30, 2016 will be uploaded on Savola website after submitting it to the concerned authorities, and can be accessed through the following link :http://www.savola.com/SavolaE/Financial_Reports.php |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.