2050 · 30/10/2022 15:36:15 · Announcement #70697 · View on Saudi Exchange

Savola Group announces its Interim Financial Results for the Period Ended on 30/09/2022 (Nine Months)

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 7,072.46,048.516.936,888.32.67
Gross Profit (Loss) 1,148.91,023.712.231,247.7-7.92
Operational Profit (Loss) 420.7301.839.4503.6-16.46
Net Profit (Loss) after Zakat and Tax 163.6122.433.66213.8-23.48
Total Comprehensive Income 142.81.97,415.79182.2-21.62
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 21,450.117,913.919.74
Gross Profit (Loss) 3,6823,350.99.88
Operational Profit (Loss) 1,453.11,088.833.46
Net Profit (Loss) after Zakat and Tax 648.3476.236.14
Total Comprehensive Income 443.3604.8-26.7
Total Share Holders Equity (after Deducting Minority Equity) 8,401.48,426.3-0.29
Profit (Loss) per Share 1.210.89
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The Group recorded net profit during Q3 2022 amounting to SAR 164 million versus net profit of SAR 122 million for the same quarter last year. The increase in net profit is mainly attributed to the following:

- Increase in the gross profit primarily due to improved margins in the Food Processing segment; and

- Higher share of profits from associates.

The increase in net profit is despite the following:

- Higher operating expenses;

- Higher net finance cost; and

- Higher zakat and income-tax expense.

The Group reported Revenues of SAR 7.1 billion during Q3 2022 compared to SAR 6 billion for the same quarter last year, showing a 17% increase.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The Group recorded net profit during Q3 2022 amounting to SAR 164 million versus net profit of SAR 214 million for the previous quarter ended 30 June 2022. The decrease in net profit is mainly attributed to the following:

- Decrease in gross profit primarily due to lower margins in the Food Processing, Retail and Frozen Foods segments;

- Lower share of profits from associates; and

- Higher net finance cost.

The decrease in net profit is despite the following:

- Lower operating expenses; and

- Lower zakat and income-tax expense.

The Group reported Revenues of SAR 7.1 billion during Q3 2022 compared to SAR 6.9 billion for the previous quarter ended 30 June 2022, showing a 3% increase.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The Group recorded net profit during the nine-months ended 30 September 2022 amounting to SAR 648 million versus net profit of SAR 476 million for the same period last year. The increase in net profit is mainly attributed to the following:

- Increase in gross profit primarily due to improved margins in the Food Processing segment; and

- Higher share of profits from associates.

The increase in net profit is despite the following:

- Higher operating expenses;

- Higher net finance cost; and

- Higher zakat and income-tax expense.

The Group reported Revenues of SAR 21.5 billion during the nine-month period ended 30 September 2022 compared to SAR 17.9 billion for the same period last year, showing a 20% increase.Statement of the type of external auditor's report Unmodified conclusionReclassification of Comparison Items Items, elements and notes of the comparatives in the Condensed Consolidated Interim Financial Statements have been reclassified to meet with the applied accounting policies for the current period, which have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia. For more information, please refer to Note 20 (Amendments to standards and standards issued which not yet effective) in the Condensed Consolidated Interim Financial Statements for the period ended 30 September 2022 and 30 September 2021.Additional Information Revenue by segment before inter segment eliminations:

For the nine-month period ended 30 September 2022 as compared to the same period in the previous year, revenues increased in the Food Processing and Frozen Foods segments by 47% and 4%, respectively. While revenues decreased in the Retail and Food Services segments by 6% and 6% respectively, compared to the same period in the previous year.

The increase in revenue in the Food Processing segment during the current period as compared to the same period in the previous year is mainly due to increases in commodity prices and edible oil segment volumes.

Net profit by segment:

For the nine-month period ended 30 September 2022 as compared to the same period in the previous year, net profit from the Food Processing segment increased by 52%.

The Retail segment recorded a net loss of SAR 173 million in the nine-month period ended 30 September 2022 compared to a net loss of SAR 147 million in the same period in the previous year.

For the nine-month period ended 30 September 2022 as compared to the same period in the previous year, net profit from the Food Services and Frozen Foods segments declined by 38% and 16%, respectively.

The Condensed Consolidated Financial Statements for the period ended 30 September 2022, will be available through the following link on Savola’s website, and Savola’s Investment Relation App after sending it to the relevant authorities, through the following link: http://www.savola.com/SavolaE/Financial_Reports.php

The quarterly investor presentation will be available on Savola’s website within the Investors section at the following link:

https://www.savola.com/en/investors/investor-relations/financial-information/earnings-presentations

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.