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The Savola Group announces the interim financial results for the period ended on 31/12/2023 (Twelve Months)

2050
SAVOLA GROUP
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1445/07/26     07/02/2024 08:12:06

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 6,583.346,604.64-0.3226,350.93.659
Gross Profit (Loss) 1,380.621,192.0915.8151,310.495.351
Operational Profit (Loss) 700.83238.46193.898462.1851.635
Net profit (Loss) 227.0594.47140.34147.3654.078
Total Comprehensive Income 172.93-149.32-101.6970.056
All figures are in (Millions) Saudi Arabia, Riyals


Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 26,842.0328,054.7-4.322
Gross Profit (Loss) 5,440.14,874.0811.612
Operational Profit (Loss) 2,332.881,667.8739.871
Net profit (Loss) 899.19742.7521.062
Total Comprehensive Income 646.06293.97119.77
Total Share Holders Equity (After Deducting the Minority Equity) 8,449.878,254.712.364
Profit (Loss) per Share 1.691.39
All figures are in (Millions) Saudi Arabia, Riyals


Element ListPercentage of the capital (%)Amount
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value --
All figures are in (Millions) Saudi Arabia, Riyals


Element ListExplanation
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 6.6 billion during Q4 2023 which is similar to Q4 2022.
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 Q4 2023 amounting to SAR 227 million versus net profit of SAR 94 million for the same quarter last year showing a 140% increase.

The increase in net profit is mainly attributed to the following:

- Increase in gross profit reported in the Foods Processing, Retail and Frozen Foods segments;

- Higher share of profits from associates;

- Lower operating expenses;

- Net impairment reversal amounting to SAR 111.9 million during Q4 2023 for certain non-current assets mainly in the Foods Processing and Retail segments.

Net impairment reversal during Q4 2022 amounting to SAR 65.2 million for certain non-current assets mainly in the Foods Processing, Retail and Food Services segments.

The increase in net profit is despite the following:

- Higher net finance cost;

- Higher zakat and income tax expense; and

- During Q4 2022, the Group recorded capital gain amounting to SAR 41.8 million on the sale of an equity-accounted investment.

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 6.6 billion during Q4 2023 compared to Revenues of SAR 6.4 billion for the previous quarter ended 30 September 2023, showing a 4% increase due to increase in revenue of the Foods Processing segment.
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 Q4 2023 amounting to SAR 227 million versus net profit of SAR 147 million for the previous quarter ended 30 September 2023 showing a 54% increase.

The increase in net profit is mainly attributed to the following:

- Increase in gross profit reported in the Foods Processing, Retail and Frozen Foods segments;

- Higher share of profits from associates;

- Net impairment reversal amounting to SAR 111.9 million during Q4 2023 for certain non-current assets mainly in the Foods Processing and Retail segments; and

- Lower zakat and income tax expense.

The increase in net profit is despite the following:

- Higher operating expenses; and

- Higher net finance cost.

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 26.8 billion during the year ended 31 December 2023 compared to SAR 28.1 billion for the same period last year, showing a 4% decline primarily due to drop in the revenues of the Foods Processing segment due to lower crude edible oil prices, 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 revenue during 2023 was despite higher revenue reported in the Retail segment.
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 for the year ended 31 December 2023 amounting to SAR 899 million versus net profit of SAR 743 million for last year showing a 21% increase.

The increase in net profit is mainly attributed to the following:

- Increase in gross profit reported in the Foods Processing, Retail and Frozen Foods segments;

- Higher share of profits from associates;

- Net impairment reversal amounting to SAR 111.9 million during 2023 for certain non-current assets mainly in the Foods Processing and Retail segments. Net impairment reversal during 2022 amounting to SAR 65.2 million for certain non-current assets mainly in the Foods Processing, Retail and Food Services segments; 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:

- Capital gain on disposal of investments/operations amounting to SAR 18.7 million during 2023 which is lower than the capital gain on disposal of investments during 2022 amounting to SAR 41.8 million;

- Higher net finance cost;

- Higher operating expenses; and

- Higher zakat and income tax expense.

The Retail segment achieved operational breakeven for the year ended 31 December 2023.

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) Non-applicable
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 21 (New Standards, Amendment to Standards and Interpretations) in the Condensed Consolidated Interim Financial Statements for the period ended 31 December 2023 and 31 December 2022.
Additional Information Net profit by segment:

For the year ended 31 December 2023 as compared to the previous year, net profit from the Foods Processing and Frozen Foods segments increased by 12% and 9%, respectively.

Ongoing investment in the CXR program contributed favorably towards the Retail segment recording a net profit of SAR 47 million for the year ended 31 December 2023 compared to a net loss of SAR 158 million in the same period in the previous year.

The Condensed Consolidated Financial Statements for the year ended 31 December 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

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

Company Performance

SAVOLA GROUP
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Last Price 48.15
Net Change 0.0 (0.0%)
Value Traded (Sar) 9,698,594.15
Volume Traded 202,368
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