The Savola Group announces the interim financial results for the period ended on 30/09/2023 (Nine Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 6,350.9 | 7,072.41 | -10.2 | 6,093.29 | 4.23 |
| Gross Profit (Loss) | 1,310.49 | 1,148.92 | 14.06 | 1,246.96 | 5.09 |
| Operational Profit (Loss) | 462.18 | 413.62 | 11.74 | 442.6 | 4.42 |
| Net Profit (Loss) after Zakat and Tax | 147.36 | 163.64 | -9.95 | 132.03 | 11.61 |
| Total Comprehensive Income | 101.69 | 142.8 | -28.79 | 138.45 | -26.55 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 20,258.68 | 21,450.06 | -5.55 |
| Gross Profit (Loss) | 4,059.48 | 3,681.99 | 10.25 |
| Operational Profit (Loss) | 1,632.06 | 1,429.41 | 14.18 |
| Net Profit (Loss) after Zakat and Tax | 672.13 | 648.28 | 3.68 |
| Total Comprehensive Income | 473.13 | 443.3 | 6.73 |
| Total Share Holders Equity (after Deducting Minority Equity) | 8,308.67 | 8,401.36 | -1.1 |
| Profit (Loss) per Share | 1.26 | 1.21 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| 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 2023 amounting to SAR 147 million versus net profit of SAR 164 million for the same quarter last year showing a 9.9% decrease.
The decrease in net profit is mainly attributed to the following: - Lower share of profits from associates; - Higher net finance cost; - Higher operating expenses; and - Higher zakat and income tax expense.
The decrease in net profit is despite increase in gross profits of the Food Processing and Food Services segments and net profit reported in the Retail segment for Q3 2023.
The Group reported Revenues of SAR 6.4 billion during Q3 2023 compared to SAR 7.1 billion for the same quarter last year, showing a 10.2% decrease primarily due to drop in revenues of Food Processing segment due to lower crude edible oil prices, disposal of investment in Savola Morocco Company and temporary suspension of operations in Republic of Sudan because of the ongoing conflict. |
| 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 2023 amounting to SAR 147 million versus net profit of SAR 132 million for the previous quarter ended 30 June 2023 showing an 11.6% increase.
The increase in net profit is mainly attributed to the following: - Increase in gross profit of the Food Processing and Retail segments; - Lower operating expenses; and - Lower zakat and income tax expense.
The increase in net profit is despite the following: - Lower share of profits from associates; and - Higher net finance cost.
The Group reported Revenues of SAR 6.4 billion during Q3 2023 compared to Revenues of SAR 6.1 billion for the previous quarter ended 30 June 2023, showing a 4.2% 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 2023 amounting to SAR 672 million versus net profit of SAR 648 million for the same period last year showing a 3.7% increase.
The increase in net profit is mainly attributed to the following: - Increase in gross profit of the Food Processing and Retail segments; - Capital gain amounting to SAR 18.5 million on the disposal of investment in Savola Morocco Company; and - Refund of custom duty from regulatory authority in KSA having a net impact of SAR 23.3 million.
The increase in net profit is despite the following: - Lower share of profits from associates; - Higher operating expenses; - Higher net finance cost; and - Higher zakat and income tax expense.
The Group reported Revenues of SAR 20.2 billion during the nine months ended 30 September 2023 compared to SAR 21.5 billion for the same period last year, showing a 5.6% decrease. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | Several 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 19 (New Standards, Amendment to Standards and Interpretations) in the Condensed Consolidated Interim Financial Statements for the period ended 30 September 2023 and 30 September 2022. |
| Additional Information | The decline in revenues of the Food Processing segment is primarily due to lower crude edible oil prices, disposal of investment in Savola Morocco Company and temporary suspension of operations in Republic of Sudan because of the ongoing conflict.
Net profit by segment: For the nine months ended 30 September 2023 as compared to the same period in the previous year, net profit from the Food Processing segment increased by 4% while net profit from the Frozen Foods and Food Services segments decreased by 14% and 96% respectively.
The Retail segment recorded a net loss of SAR 22 million for the nine months ended 30 September 2023 compared to a net loss of SAR 173 million in the same period in the previous year.
The Condensed Consolidated Financial Statements for the period ended 30 September 2023, 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 |
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