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Savola Group announces its Annual Financial Results for the Period Ending on 2019-12-31

Default Company 2050.B 6.03% 37.80 2.15
Element List Current Year Previous Year %Change
Sales/Revenue 22,243.4 21,814.6 1.965
Gross Profit (Loss) 4,504.3 3,898 15.554
Operational Profit (Loss) 1,309 277.3 372.051
Net Profit (Loss) after Zakat and Tax 475.6 -520.4 -
Total Comprehensive Income 462.8 -1,106.9 -
Total Share Holders Equity (after Deducting Minority Equity) 7,590.2 7,127.4 6.493
Profit (Loss) per Share 0.89 -0.97
All figures are in (Millions) Saudi Arabia, Riyals
Element List Explanation
Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to Net profit improved to SAR 475.6 million for the year ended 31 December 2019 due to substantially enhanced performance as compared to the net loss of SAR 520.4 million for previous year.

The profit achieved is mainly attributed to the following:

-Higher gross profits due to higher sales and margins;

-Lower operating expenses mainly due to the significant decrease in the impairment losses;

-Higher share of profits from associates;

-An exceptional expense was recorded in the comparable period relating to an associate’s subsidiary; and

-Zakat and tax provision reversal relating to prior years’ assessments for the subsidiaries.

The net profit for the year was achieved despite of increase in the net finance cost resulting mainly from the adoption of new leasing standard (IFRS 16) applied during 2019, being partially compensated by the reduced foreign currency exchange losses.

In addition to the net profit achieved as disclosed above, the total comprehensive income achieved for the year ended 31 December 2019 compared to the total comprehensive loss for the year ended 31 December 2018 is attributed to the following:

-Significant decrease in the foreign currency exchange losses relating to the overseas subsidiaries;

-Increase resulting from the fair value change in the “investments at fair value through Other Comprehensive Income”; and

-The impact of actuarial gain relating to the re-measurement of the defined benefit liability

The increase in total comprehensive income was recorded despite of decrease in the share of other comprehensive income relating to “investments in equity accounted investees”.

Basis of the External Auditor's Opinion Unmodified opinion
Reclassification of Comparison Items Items, elements and notes of the comparatives Consolidated Financial Statements have been redisplayed, regrouped and 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 were endorsed in the Kingdom of Saudi Arabia. Certain comparative amounts have been reclassified to conform to the current year’s presentation.

For more information, please refer to note 40 (New standards or amendments for 2019 and forthcoming requirements) in the Consolidated Financial Statements for the year ended December 31, 2019 and December 31, 2018.

Additional Information We would like to inform the shareholders and investors that the consolidated financial statements of the Group for the year ended December 31, 2019 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

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