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

- Lower share of profits from associates;

- Higher net finance cost;

- Higher operating expenses; and

- Higher zakat and income tax expense.

The decrease in net profit is despite lower net loss in the Retail segment.

The Group reported Revenues of SAR 6.1 billion during Q2 2023 compared to SAR 6.9 billion for the same quarter last year, showing a 11.5% decrease primarily due to effect of phasing of Ramadan by 10 days in Q1 2023; in addition to drop in revenues of Food Processing segment due to lower crude edible oil prices, disposal of investment in Savola Morocco Company and temporary suspension of operations in Republic of Sudan.

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

- Decrease in gross profit of the Food Processing segment;

- Lower share of profits from associates;

- Higher operating expenses; and

- During Q1 2023 there was capital gain amounting to SAR 18.5 million on the disposal of investment in Savola Morocco Company and refund of custom duty from regulatory authority in KSA having a net impact of SAR 23.3 million.

The decrease in net profit is despite the following:

- Lower net finance cost; and

- Lower zakat and income tax expense.

The Group reported Revenues of SAR 6.1 billion during Q2 2023 compared to Revenues of SAR 7.8 billion for the previous quarter ended 31 March 2023, showing a 22% decrease primarily due to Ramadan advancement in Q1 2023 by 10 days; in addition, revenues of Food Processing segment were impacted by lower crude edible oil prices, disposal of investment in Savola Morocco Company and temporary suspension of operations in Republic of Sudan.

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

- Increase in gross profit of the Food Processing and Retail segments;

- Capital gain amounting to SAR 18.5 million on the disposal of investment in Savola Morocco Company; 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:

- Higher operating expenses;

- Higher net finance cost; and

- Higher zakat and income tax expense.

The Group reported Revenues of SAR 13.9 billion during the six months ended 30 June 2023 compared to SAR 14.4 billion for the same period last year, showing a 3.3% decrease.

For the six months ended 30 June 2023 as compared to the same period in the previous year, revenues increased in the Retail and Frozen Foods segments by 3% and 8%, respectively.

While revenues decreased in the Food Processing and Food Services segments by 7% and 9%, respectively, compared to the same period in the previous year.

Net profit by segment:

For the six months ended 30 June 2023 as compared to the same period in the previous year, net profit from the Food Processing segment increased by 14% while net profit from the Frozen Foods segment decreased by 9%.

The Retail segment recorded a net loss of SAR 37 million for the six months ended 30 June 2023 compared to a net loss of SAR 107 million in the same period in the previous year.

The Food Services segment recorded a net loss of SAR 8 million for the six months ended 30 June 2023 compared to a net profit of SAR 49 million in the same period in the previous year.

The Condensed Consolidated Financial Statements for the period ended 30 June 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