The growth in the Retail segment was primarily driven by the favorable impact of the CXR program and an expanded store footprint. Meanwhile, the Food Processing segment faced a 4% revenue decline due to lower crude edible oil prices, foreign exchange devaluation in certain overseas markets, and the divestment of Savola Morocco Company.

In line with International Financial Reporting Standards (IFRS), reported revenues exclude the results of divested businesses in the Islamic Republic of Iran (Iran) and discontinued operations in the Republic of Sudan (Sudan).

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

-Distribution of Savola Group Company’s entire 34.52% stake in Almarai Company (Almarai) to eligible shareholders, resulting in a net gain of SAR 11.3 billion.

-Retail segment’s improved performance, with net profit rising from SAR 47 million in 2023 to SAR 154 million in 2024, mainly due to the favorable impact of the CXR program and an expanded store footprint.

-One-off recorded in the Food Processing segment in Q3 2024, related to a custom duty refund from the regulatory authority in Saudi Arabia, with a net impact of SAR 19.4 million.

-Higher share of profits from associates.

The increase in net profit is despite the following:

-Decrease in net profit of the Food Processing segment by SAR 2.1 billion. The Food Processing segment was impacted by:

a. One-off loss related to divestment of businesses in Iran amounting to SAR 1.5 billion, comprising of SAR 0.3 billion recorded to retained earnings, and remaining net impact of discontinued operation amounting to SAR 1.1 billion adjusted for SAR 98 million operating profit after tax.

b. One-off loss related to discontinued operations in Sudan amounting to SAR 0.3 billion.

c. One-off related to impact on derecognition of associate investment in United Sugar Company, Egypt amounting to SAR 139 million of which SAR 97.2 million was recorded in the Food Processing segment

d.Net impairment charge of SAR 310.8 million in 2024, compared to a net impairment reversal of SAR 65.5 million in 2023 for certain non-current assets.

e. Foreign exchange losses of SAR 109 million due to the devaluation of the Egyptian Pound during Q1 2024 and a SAR 29 million charge related to a startup asset under Munchbox brand.

f. Absence of one-off gains recorded in 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.

-Decline in the Food Services segment’s (Herfy) performance, moving from a net profit of SAR 8 million in 2023 to a net loss of SAR 117 million in 2024;

-Net impairment charge of SAR 79.6 million in 2024 for certain non-current assets, primarily in the Retail and Frozen Food segments, compared to a net impairment reversal of SAR 46.4 million in 2023, for certain non-current assets mainly in the Retail segment.

-Higher operating expenses;

-Higher net finance costs due to higher financial charges in oversees market in Food Processing including a SAR 20 million premium incurred to buy back and cancel the Company’s entire SAR 1 billion Sukuk facility.

-Higher zakat and income tax expense due to higher net profit.

1.Successful distribution of our 34.52% stake in Almarai to shareholders, coupled with a SAR 6 billion rights issue, has optimized balance sheet and created financial agility for future investments.

2.The expansion of Panda’s store footprint and the ongoing benefits of its multi-year Customer Experience Revival program have strengthened operations and customer engagement, driving an 23% growth in EBITDA and a rise in net profit to SAR 154 million from last year’s SAR 47 million. This remarkable transformation underscores Panda’s resilience and ability to thrive in KSA’s competitive grocery market, reflecting its strong brand and the trust of customers who rely on Panda for great value across the Kingdom.

3.Divestment of Iran operations underscores commitment to portfolio discipline and market focus.

4.New value-added food categories and verticals – Frozen Food segment and the Nuts, Spices and Pulses vertical included in Food Processing segment – sustained their growth trajectory, with revenue increasing by 13% to SAR 1.4 billion and gross profit rising by 13% to SAR 463 million compared to last year.

5.Food Processing Segment core profitability continued to be resilient in face of increased competition despite challenges in edible oil segment in Arabia.

6.In our non-managed businesses, Herfy (Food Services segment) continued to face headwinds which negatively impacted Group’s profitability during 2024.

For the year ended 31 December 2024, the net earnings per share were SR 10.61, calculated by dividing the net profit attributable to shareholders amounting to SR 10 billion, by the weighted average number of shares of 940.3 million. For the year ended 31 December 2023, the earnings per share were SR 0.99, calculated by dividing the net profit attributable to shareholders amounting to SR 899 million, by the weighted average number of shares of 906.9 million.

In accordance with International Accounting Standard 33, 'Earnings per Share', the weighted average number of shares for both years was adjusted to account for the impact of capital increase executed through rights issue. The weighted average number of shares for 2024 was also adjusted for capital reduction. The weighted average number of shares was also adjusted by deducting the effect of shares held under employees’ share based payment plan amounting to 5,605,425 shares for the current year, compared to 4,298,289 shares for the previous year.

The Consolidated Financial Statements for the year ended 31 December 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 annual 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