Savola Group announces its Interim Financial Results for the Period Ending on 2020-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 6,119.8 | 5,387.9 | 13.584 | 5,495.6 | 11.358 |
| Gross Profit (Loss) | 1,223 | 1,065.5 | 14.781 | 1,224.3 | -0.106 |
| Operational Profit (Loss) | 408.5 | 205.9 | 98.397 | 313.4 | 30.344 |
| Net Profit (Loss) after Zakat and Tax | 172.8 | 6.3 | 2,642.857 | 137.3 | 25.855 |
| Total Comprehensive Income | 19.4 | 13.9 | 39.568 | 136.4 | -85.777 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (after Deducting Minority Equity) | 7,609.7 | 7,141.4 | 6.557 |
| Profit (Loss) per Share | 0.32 | 0.01 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | The net profit for the current quarter has significantly increased to SAR 172.8 million in comparison to SAR 6.3 million for the quarter ended 31 March 2019.
The profit achieved is mainly attributed to the following: -Increase in the gross profit is mainly due to the higher sales and margins in both food and retail sectors; -Higher share of profits from associates; and -Lower operating expenses.
The net profit was achieved despite of the following:
-Slightly higher net finance cost resulting from the foreign currency exchange losses, being offset by the lower financial charges on borrowings; -A non-recurring zakat and tax provision reversal relating to prior years assessments was recorded in the quarter ended 31 March 2019; and -Higher zakat and tax expense.
In addition to the net profit achieved as disclosed above, the total comprehensive income for the current quarter compared to the total comprehensive income for the same quarter last year is achieved, despite also of the following: -The impact of actuarial loss relating to the re-measurement of defined benefit liability; -Loss resulting from the fair value change in the “investments at fair value through Other Comprehensive Income”; -Increase in the foreign currency exchange losses relating to the overseas subsidiaries due to devaluation and foreign currency translation impact; and -Decrease in the share of other comprehensive income relating to investments in equity accounted investees. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | The net profit for the current quarter has increased to SAR 172.8 million in comparison to SAR 137.3 million for the quarter ended 31 December 2019:
The profit achieved is mainly attributed to the following:
-Higher sales and margins mainly in food sector; -Higher share of profits from associates; -Lower operating expenses; -Impairment loss recorded in the quarter ended 31 December 2019; and -Lower zakat and tax expense.
The net income is achieved despite of the following:
-Higher net financial charges; and -A non-recurring zakat and tax provision reversal relating to prior years assessments for the subsidiaries, being recorded in the quarter ended 31 December 2019.
In addition to the net profit achieved as disclosed above, the total comprehensive income for the current quarter compared to the total comprehensive income for the previous quarter is achieved despite also of the following:
-The impact of actuarial loss relating to the re-measurement of defined benefit liability; -Loss resulting from the fair value change in the “investments at fair value through Other Comprehensive Income”; -Increase in the foreign currency exchange losses relating to the overseas subsidiaries due to devaluation and foreign currency translation impact; and -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 Condensed Consolidated Interim 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 are endorsed in the Kingdom of Saudi Arabia. For more information, please refer to note 16 (Amendments to standards and standards issued and not yet effective) in the condensed Consolidated Interim Financial Statements for the period ended March 31, 2020 and March 31, 2019. |
| Additional Information | The existence of novel coronavirus (COVID-19) was confirmed in early 2020 and has spread across multiple geographies, causing disruptions to businesses and economic activity. In response to the spread of COVID-19 and its resulting disruptions to the social and economic activities, the Group’s management has already mobilized a task force to assess the possible impact on its business in Saudi Arabia and other geographies where group operates. The management has also taken a series of preventive measures to ensure the health and safety of its employees, customers and wider community as well as to ensure the continuity of its operations.
Since the extent and duration of such impacts remain uncertain and dependent on future developments that cannot be accurately predicated at this time, the management and those charged with governance will continue to monitor the potential risks around supply of material, manpower, inventory levels and minimum interruptions to the production facilities across all geographies and accordingly update stakeholders for material deviations, as per local regulatory requirements.
We would like to inform the investors that the condensed consolidated interim financial statements of the Group for the period ended 31 March 2020 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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