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The Savola Group announces the interim financial results for the period ended on 30/09/2021 (NINE MONTHS)

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 6,048.54,587.331.8535,9012.499
Gross Profit (Loss) 1,023.71,064.4-3.8231,117.6-8.401
Operational Profit (Loss) 301.8439.3-31.299414.3-27.154
Net Profit (Loss) after Zakat and Tax 122.4283.7-56.855200-38.8
Total Comprehensive Income 1.9456.8-99.584328.7-99.421
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 17,913.916,517.28.456
Gross Profit (Loss) 3,350.93,566.1-6.034
Operational Profit (Loss) 1,088.81,432.3-23.982
Net Profit (Loss) after Zakat and Tax 476.2866.1-45.017
Total Comprehensive Income 604.8750.8-19.445
Total Share Holders Equity (after Deducting Minority Equity) 8,426.38,164.73.204
Profit (Loss) per Share 0.891.62
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
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 decrease in the net profit for the 3rd quarter of 2021 compared with same quarter last year is attributed mainly to the following:

- Decrease in the gross profit that is mainly due to lower margins in retail sector;

- Lower share of profit from associates;

- Higher operating expenses; and

- Higher zakat and tax expense and lower zakat provision reversal relating to prior years recorded in the same period last year.

The decrease in net profit is despite of the lower net financial charges.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The decrease in the net profit for the 3rd quarter of 2021 compared with 2nd quarter of 2021 is attributed mainly to the following:

-Decrease in the gross profit mainly due to lower sales and profit margins in the retail sector and lower margins in food processing sector due to higher commodity costs; and

-Lower share of profits from associates;

The decrease in net profit is despite of the following:

-Lower Zakat and income-tax expense.

-Lower operating expenses;

-Lower net financial charges.

The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is Reasons of the decrease in net profit during the current period compared with same period last year is attributed mainly to the following:

-Decrease in the gross profit is mainly due to lower sales and margins in retail; and

-Lower share of profit from associates.

-Higher zakat and tax expense and lower zakat provision reversal relating to prior years recorded in the same period last year.

The net profit decreased despite of the following:

-Lower operating expenses; and

-Lower net financial charges.

Statement of the type of external auditor's report Unmodified conclusion
Reclassification of Comparison Items Items, elements and notes of the comparatives in the Condensed Consolidated Interim Financial Statements have been redisplayed, regrouped and 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 18 (Amendments to standards and standards issued and not yet effective) in the Condensed Consolidated Interim Financial Statements for the period ended September 30, 2021 and September 30, 2020.
Additional Information Revenue by segment before inter segment eliminations:

For the current period as compared to same period previous year, revenues increased in Food processing and Food Services segments by 36.0% and 26.5% respectively. While revenues decreased in the Retail and Frozen Foods segments by 10.9% and 17.3% respectively.

The decrease in the revenues of the retail and frozen food sectors in the current period compared to the same period last year was due to the impact of consumer buying behavior that occurred during the lockdown and curfew in the comparative period. In addition, during the current period, a negative impact of a weaker consumer base and lower buying power resulted in the decline. Frozen food sector was also impacted by regulatory changes in the Kingdom of Saudi Arabia which were introduced earlier in 2021.

Further, revenues for the food service segment benefitted on account of the absence of exceptional circumstances related to the pandemic, where such absence had a positive impact on the food services sector during the current period compared to the same period last year.

Net profit by segment:

The Retail segment recorded a net loss of SAR 146.9 million during the current period compared to a net profit of SAR 172.6 million same period previous year.

The net profit from frozen foods, investments and food processing segments decreased by 38.2%, 22.0% and 5.5% respectively. Whereas the net profit from food services segment increased by 275.2%.

The Condensed Consolidated Financial statements for the period ended 30 September 2021, will be available through the following link on Savola’s website, and Savola’s Investment Relation App after sending it to the relevant authorities: 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.

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