Savola Group — Earnings Release 2011

Jul 19, 2011

SAVOLA GROUP ANNOUNCES ITS INTERIM FINANCIAL RESULTS FOR THE PERIOD ENDED 30 JUNE 2011 (SIX MONTHS)

2050 · 19/07/2011 08:56:57 · Announcement #22360 · View on Saudi Exchange

SAVOLA GROUP ANNOUNCES ITS INTERIM FINANCIAL RESULTS FOR THE PERIOD ENDED 30 JUNE 2011 (SIX MONTHS)

Savola announced its interim consolidated financial results for the period ended 30 June 2011 as follows:

1) For second quarter ended 30 June, Savola achieved net income of SR230.7 Million, increase of 11% compared to same period last year SR207.7 Million and increase of 39.6% compared to the first quarter 2011 SR165.2 Million.

2) Gross profit for Second quarter ended 30 June amounted to SR963.2 Million, increase of 35.7% compared to same period last year 709.8Million.

3) Operating profit for Second quarter ended 30 June amounted to SR423.4 Million increase of 40.8% compared to same period last year SR300.8 Million.

4) Net income for Six months ended 30 June amounted to SR395.9 Million, decrease of 34.2% compared to same period last year SR601.7Million.

5) Earnings per share for the six months ended 30 June were SR 0.79 as compared to SR1.20 for same period last year.

6) Gross profit for six months ended 30 June amounted to SR1.8 Billion increase of 20% compared to same period last year SR1.5 Billion.

7) Operating profit for six months ended 30 June amounted to SR730.1 Million, increase of 15.9% compared to same period last year SR629.8 Million.

8) Revenues for six months ended 30 June amounted to SR11.95 Billion, increase of 23.8% compared to same period last year SR9.65 Billion.

9) Dr. Abdulraouf M. Mannaa, Managing Director of Savola Group, attributed the increase in the Groups net income for 2nd quarter 2011 compared to 2nd quarter 2010 mainly to the continued sales growth and increased market share in the foods and retail sectors. The decrease in the Groups net income for six months ended June 30, 2011 compared to same period of 2010 is mainly due to the capital gain of SR 196 Million from 30% of Herfy Foods Co. IPO (which the Group owns a major stake) during first half of 2010.

On other hand, the Managing Director of Savola Group, would like to mention that 2nd quarter net income before capital gain reached SR 230.7 million is above the forecast, which was estimated at SR 225 million, despite the impact on sales of some countries due to the current situation in the region. InshaAllah, Savola expects to achieve a net income before capital gain of SR 300 million for third quarter of 2011, God willing, which is in line with full 2011 forecasted net income before capital gain of SR 1Billion. Note certain comparative figures have been reclassified to conform to the current years presentation.

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.