Factors Supporting Revenue:

- Food Processing Segment: Revenue increase mainly driven by higher volumes and higher commodity prices in the Edible oil segment;

- Retail Segment: 2.4% increase in revenues supported by an expanded store footprint and growth in e-commerce sales; and

- Higher revenues in the Frozen Foods segment mainly driven by higher volumes.

Factors Offsetting Revenue:

- Lower revenues in the Food Services segment.

Key Drivers of Increase in Net Profit:

1) Food Processing segment:

a. Net profit increased to SAR 94 million in Q2 2026, from SAR 36 million in Q2 2025, mainly driven by volume growth;

b. Absence of non-recurring loss on derecognition of certain non-current assets impacted by a regulatory authority's project amounting to SAR 7.9 million (Savola share: SAR 5.9 million) in Q2 2025; and

c. Absence of a non-recurring loss amounting to SAR 20 million (Savola share: SAR 19 million), related to discontinued operations in Q2 2025.

2) Frozen Foods segment:

Frozen Foods segment reported improved profitability, with net profit increasing from SAR 4 million in Q2 2025 to SAR 11 million in Q2 2026, primarily driven by increase in revenues and margins.

3) Food Services segment:

The Food Services segment reported improved operational performance, with the net profit increasing from SAR 1 million in Q2 2025 to a net income of SAR 3 million in Q2 2026.

4) Share of Results from Associate:

Higher share of results from associate.

Offsetting Factors:

1) Retail segment:

Retail segment's results declined from a net profit of SAR 9 million in Q2 2025 to a net loss of SAR 6 million in Q2 2026, mainly due to a non-recurring loss of SAR 13 million related to the write-off of certain intangibles, in addition to the competitive market dynamics.

2) Other Offsetting Factors:

a. Higher net operating expenses primarily due to absence of a non-recurring reversal of accruals no longer required amounting to SAR 53 million, that was recognized in Q2 2025; and

b. The improvement in net profit was further offset by lower finance income, higher finance cost, higher zakat and income tax expenses.

Recurring Net Income:

For illustrative purposes, excluding the impacts of the above-mentioned non-recurring items and one-offs – the Group’s recurring net income amounted to SAR 129 million during Q2 2026, compared to SAR 78 million in Q2 2025.

The decrease in revenue is mainly attributed to seasonal consumption patterns.

Key Drivers of Decrease in Net Profit:

1) The decrease is mainly attributable to lower revenues resulting from seasonal consumption patterns, primarily in the Food Processing, Retail and Frozen Foods segment;

2) A non-recurring gain amounting to SAR 43 million (Savola share: SAR 41 million), related to disposal of operations in Sudan was recorded in Q1 2026 (reported under profit from discontinued operations); and

3) A non-recurring loss of SAR 13 million related to the write-off of certain intangibles in Retail segment, recorded in Q2 2026.

Offsetting Factors:

1) Net profit increased in the Food Services segment, resulting from seasonal consumption patterns; and

2) Higher share of results from associate.

Factors Supporting Revenue:

- Food Processing Segment: Revenue increase mainly driven by higher volumes and higher commodity prices in the Edible oil segment, and higher volumes in the Sugar segment, partially offset by lower commodity prices in the Sugar segment.

- Retail Segment: 1% increase in revenues supported by an expanded store footprint and growth in e-commerce sales, despite competitive market dynamics.

Factors Offsetting Revenue:

- Lower revenues in the Food Services segment.

Key Drivers of Increase in Net Profit:

1) Food Processing segment:

a. Net profit increased to SAR 313 million during the current period from SAR 167 million during the same period of last year, driven by higher revenues and operational efficiencies;

b. A non-recurring gain amounting to SAR 43 million (Savola share: SAR 41 million), related to disposal of operations in Sudan recorded in the current period (reported under profit from discontinued operations);

c. Absence of a non-recurring loss on derecognition of certain non-current assets impacted by a regulatory authority's project amounting to SAR 7.9 million (Savola share: SAR 5.9 million), recorded in the same period last year; and

d. Absence of a non-recurring loss amounting to SAR 19 million (Savola share: SAR 18 million), related to discontinued operations, recorded in the same period last year.

2) Frozen Foods segment:

Frozen Foods Segment reported improved profitability, with net profit increasing from SAR 30 million during the six-months period ended June 30, 2025 to SAR 36 million during the current period, primarily driven by improved margins and disciplined cost management.

3) Food Services segment:

The Food Services segment reported improved operational performance, with the net loss decreasing from SAR 18 million during the six-months period ended June 30, 2025 to a net loss of SAR 1 million during the current period.

4) Other Contributing Factors:

The improvement in net profit was further supported by higher share of results from associate and lower net operating expenses.

Offsetting Factors:

1) Retail Segment: Net profit decreased from SAR 49 million during the six-months period ended June 30, 2025 to SAR 33 million during the current period, mainly due to a non-recurring loss of SAR 13 million related to the write-off of certain intangibles during the current period, in addition to the competitive market dynamics;

2) Lower other operating income primarily due to absence of a non-recurring reversal of accruals no longer required amounting to SAR 53 million, that was recognized in the same period last year;

3) Higher zakat expense; and

4) Higher income tax expense.

Recurring Net Income:

For illustrative purposes, excluding the impacts of the above-mentioned non-recurring items and one-offs – the Group’s recurring net income amounted to SAR 372 million during the six-months period ended June 30, 2026, compared to SAR 266 million in the same period of last year.

Food Processing – SAR 6.9 billion (June 2025: SAR 6.5 billion);

Retail – SAR 5.9 billion (June 2025: SAR 5.9 billion);

Food Services – SAR 516 million (June 2025: SAR 553 million); and

Frozen Food – SAR 411 million (June 2025: SAR 417 million).

Segment Profitability Analysis:

Food Processing – Profit of SAR 313 million (June 2025: Profit of SAR 167 million);

Retail – Profit of SAR 33 million (June 2025: Profit of SAR 49 million);

Food Services – Loss of SAR 1 million (June 2025: Loss of SAR 18 million); and

Frozen Food – Profit of SAR 36 million (June 2025: Profit of SAR 30 million).

Retail Segment

Panda Retail Company delivered a marginal increase in revenues compared to the same period last year, supported by new store openings and growth in e-commerce sales. Gross profit margins declined slightly amid continued competitive market pressure, while disciplined cost management initiatives contributed to a reduction in net operating expenses.

Panda’s recurring net income, excluding the non-recurring loss of SAR 13 million recognized in Q2 2026 relating to the write-off of certain intangibles, amounted to SAR 6 million in Q2 2026, compared to SAR 9 million in Q2 2025. For the six-month period ended June 30, 2026, recurring net income totaled SAR 46 million, compared to SAR 49 million in the corresponding period last year.

Exit from Non-Core Market:

During 2026, the Group disposed its operations in Sudan for a total consideration of SAR 52.5 million, resulting in a gain of SAR 43 million (Savola share: SAR 41 million).

In line with International Financial Reporting Standards (IFRS), the comparative period excludes the results of the discontinued operations in Turkey and Sudan.

Finance Cost Analysis:

Net Financing Cost on Net Debt – SAR 39 million (June 2025: SAR 56 million);

Interest Expense on Lease Liabilities – SAR 113 million (June 2025: SAR 103 million);

Bank Commission – SAR 3 million (June 2025: SAR 4 million);

Foreign Exchange Loss, Net – SAR 14 million (June 2025: SAR 5 million); and

Others – SAR 1 million (June 2025: Nil).

Geopolitical Developments:

The Group continues to monitor the regional geopolitical developments and their potential impact on Saudi Arabia and the broader GCC environment. While the situation remains evolving, the Group maintains a robust operational framework to manage associated risks. These developments have not had a material impact on Group's financial statements for the period ended June 30, 2026, however, given the evolving nature of the conflict, the potential impact on the Group’s business will continue to be assessed on future reporting dates.

Subsequent event:

Subsequent to June 30, 2026, the Group acquired a 100% equity interest in Al Mehbaj Al Shamiya for Trading LLC, a food processing company and a related party of the Group, for total consideration of SAR 11.4 million, comprising SAR 5.4 million paid subsequent to the reporting date following the completion of agreed post-completion adjustments and related legal formalities including regulatory approvals, and deferred consideration of SAR 6.0 million payable on the first anniversary of the completion date.

The transaction remains subject to ratification by the shareholders at the next General Assembly in accordance with the applicable regulatory requirements governing related party transactions.

Note:

1) For more information on the financial results, please refer to the attached earning release (Attached).

2) The Interim Condensed Consolidated Financial Statements for the period ended June 30, 2026, will be available on Savola’s website after sending it to the relevant authorities, through the following link:

https://www.savola.com/en/investors/financial-statements

3) 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/earnings-presentations