- Net profit of the Food Processing segment in Q1 2024 amounting to SAR 205 million which decreased from net profit in Q1 2023 amounting to SAR 258 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;

- Lower share of profits from associates;

- Higher operating expenses;

- Higher net finance cost by SAR 83 million primarily due to impact of Egyptian Pound devaluation during Q1 2024 and increase in prevailing interest rates; and

- Higher zakat and income tax expense.

The decrease in net profit is despite the improvement of Retail segment from net loss amounting to SAR 14 million in Q1 2023 to a net profit amounting to SAR 33 million in Q1 2024 due to ongoing investment in the CXR program.

- Increase in net profit of the Food Processing segment primarily driven by seasonal consumption patterns despite the impact of one-off recorded in Q4 2023 amounting to SAR 65 million relating to net impairment reversal for certain non-current assets;

The increase in net profit is despite the following:

- Decrease in net profit of the Retail segment due to the impact of one-off recorded in Q4 2023 amounting to SAR 47 million relating to net impairment reversal for certain non-current assets;

- Decrease in net profit of the Frozen Food segment;

- Lower share of profits from associates;

- Higher operating expenses; and

- Higher zakat and income tax expense.

For the three-month period ended 31 March 2024 as compared to the same period in the previous year, revenues increased in the Retail, Food Services and Frozen Food segments by 3%, 5% and 9%, respectively.

While revenues decreased in the Food Processing segment by 3% compared to the same period in the previous year due to lower crude edible oil prices, foreign exchange devaluation in certain overseas markets and temporary suspension of operations in Republic of Sudan because of the ongoing conflict.

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 towards the end of 2023.

The Condensed Consolidated Financial Statements for the period ended 31 March 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 to be accessed via the following link:

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