Savola Group announces its Interim Financial Results for the Period Ended on 30/06/2024 (Six Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 5,374.97 | 6,093.3 | -11.788 | 7,781.87 | -30.929 |
| Gross Profit (Loss) | 1,214.78 | 1,247 | -2.583 | 1,618.73 | -24.954 |
| Operational Profit (Loss) | 427.19 | 442.6 | -3.481 | 808.91 | -47.189 |
| Net profit (Loss) | 135.39 | 132 | 2.568 | 348.71 | -61.174 |
| Total Comprehensive Income | 147.57 | 138.5 | 6.548 | 16.07 | 818.294 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 13,156.84 | 13,907.8 | -5.399 |
| Gross Profit (Loss) | 2,833.51 | 2,749 | 3.074 |
| Operational Profit (Loss) | 1,236.1 | 1,169.9 | 5.658 |
| Net profit (Loss) | 484.1 | 524.8 | -7.755 |
| Total Comprehensive Income | 163.63 | 371.4 | -55.942 |
| Total Shareholders Equity (after Deducting Minority Equity) | 8,622.9 | 8,198.6 | 5.175 |
| Profit (Loss) per Share | 0.92 | 0.99 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The Group reported revenues of SAR 5.4 billion during Q2 2024 compared to SAR 6.1 billion for the same quarter in the previous year primarily due to decline in revenues of the Food Processing segment on account of lower crude edible oil prices and lower edible oil volumes despite higher prices and higher volumes in the Sugar segment. |
| 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 Q2 2024 amounting to SAR 135.4 million versus net profit of SAR 132 million for the same quarter in the previous year.
The increase in net profit is mainly attributed to the following: - Improvement of Retail segment from net loss amounting to SAR 22 million in Q2 2023 to a net profit amounting to SAR 6 million in Q2 2024 due to favorable impact of Customer Experience Revival (CXR) program. - Higher share of profits from associates; and - Lower zakat and income tax expense.
The increase in net profit is despite the following: - Higher operating expenses; and - Higher net finance cost primarily due to increase in prevailing interest rates. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The Group reported Revenues of SAR 5.4 billion during Q2 2024 compared to Revenues of SAR 7.8 billion for the previous quarter ended 31 March 2024. The decrease in revenue is mainly attributed to seasonal consumption patterns. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The Group recorded net profit during Q2 2024 amounting to SAR 135.4 million versus net profit of SAR 348.7 million for the previous quarter ended 31 March 2024.
The decrease in net profit is mainly attributed to seasonal consumption patterns.
The decrease in net profit is despite the following: - Higher share of profits from associates. - Lower operating expenses. - Lower net finance cost primarily due to impact of Egyptian Pound devaluation during Q1 2024 amounting to SAR 109 million; and - Lower zakat and income tax expense. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | The Group reported revenues of SAR 13.2 billion during six-month period ended 30 June 2024 compared to SAR 13.9 billion for the same period last year primarily due to decline in the revenues of the Food Processing segment due to lower crude edible oil prices and lower edible oil volumes, foreign exchange devaluation in certain overseas markets, disposal of investment in Savola Morocco Company and temporary suspension of operations in Republic of Sudan because of the ongoing conflict. The decline in Group’s revenues was despite higher revenue reported in the Retail, Food Services and Frozen Food segments. |
| 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 six-month period ended 30 June 2024 amounting to SAR 484.1 million versus net profit of SAR 524.8 million for the same period in the previous year.
The decrease in net profit is mainly attributed to the following: - Decrease in Net profit of the Food Processing segment by SAR 48 million. The Food Processing segment was impacted by foreign exchange losses upon devaluation of Egyptian Pound during Q1 2024 amounting to SAR 109 million as well as the impact of one-offs recorded in Q1 2023 that comprise (i) capital gain amounting to SAR 18.5 million on the disposal of investment in Savola Morocco Company and (ii) refund of custom duty from regulatory authority in KSA having a net impact of SAR 23.3 million; - Higher operating expenses; and - Higher net finance cost;
The decrease in net profit is despite the following: - Improvement of Retail segment from net loss amounting to SAR 37 million during the six-month period ended 30 June 2023 to a net profit amounting to SAR 39 million during the same period in the current year mainly driven by favorable impact of CXR program. - Higher share of profits from associates; and - Lower zakat and income tax expense. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | NA |
| Reclassification 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 18 (Amendment to Standards and Standards Issued and Not Yet Effective) in the Condensed Consolidated Interim Financial Statements for the period ended 30 June 2024. |
| Additional Information | Revenue by segment before inter segment eliminations:
For the six-month period ended 30 June 2024 as compared to the same period in the previous year, revenues increased in the Retail, Food Services and Frozen Food segments by 2%, 5% and 6% respectively.
The increase in revenue in the Retail segment during the current period as compared to the same period in the previous year is mainly driven by favorable impact of CXR program and opening of seven new stores in KSA towards the end of 2023. On the other hand, revenues decreased in the Food Processing segment by 11% compared to the same period in the previous year primarily due to lower crude edible oil prices and lower edible oil volumes, foreign exchange devaluation in certain overseas markets, disposal of investment in Savola Morocco Company and temporary suspension of operations in Republic of Sudan because of the ongoing conflict.
The Condensed Consolidated Financial Statements for the period ended 30 June 2024, will be available through the following link on Savola’s website, 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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