Savola Group — Earnings Release 2010

Jan 17, 2011

SAVOLA GROUP ANNOUNCES ITS FINANCIAL RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2010 (TWELVE MONTHS)

2050 · 17/01/2011 16:05:11 · Announcement #19922 · View on Saudi Exchange

SAVOLA GROUP ANNOUNCES ITS FINANCIAL RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2010 (TWELVE MONTHS)

Savola announced its interim consolidated financial results for the period ended 31 December 2010:

1)For fourth quarter ended 31 December 2010 Savola achieved net income of SR2M, decrease of 99.3% compared to same quarter last year SR268.6M and decrease of 99.3% compared to the third quarter 2010 SR283M.

2)Gross profit for fourth quarter ended 31 December 2010 amounted to SR970,7 M, increase of 26.5% compared to same quarter last year SR767.2M.

3)Operating profit for fourth quarter ended 31 December 2010 amounted to SR421.5M, increase of 53.0% compared to same quarter last year SR275.5M.

4)Net income for twelve months ended 31 December 2010 amounted to SR886.7M, decrease of 6.8% compared to same quarter last year SR951.6M.

5)Earnings per share for the twelve months ended 31 December 2010 were SR1.77 as compared to SR1.90 for last year.

6)Gross profit for twelve months ended 31 December 2010 amounted to SR3.33Billion, increase of 7.4% compared to same quarter last year SR3.10Billion.

7)Operating profit for twelve months ended 31 December 2010 amounted to SR1.45Billion, increase of 5.1% compared to same quarter last year SR1.38Billion.

8)Revenues for fourth quarter ended 31 December 2010 amounted to SR5.8Billion, increase of 20.8% compared to same quarter last year SR4.8Billion.

9)Revenues for twelve months ended 31 December 2010 amounted to SR21.1Billion, increase of 17.9% compared to last year SR17.9Billion.

10) Dr. Abdulraouf Mannaa, Managing Director of Savola, attributed the drop in the Groups net income for 4th quarter mainly to the outcome of review of Foods business strategy, which aims to entrench its position in core markets and re-assess to exit from certain overseas operations. During Q4 2010, the Group has recorded impairment provision of SR 115m against losses from certain overseas operations in foods sector, and also recorded impairment losses against investments and intangible assets amounting to SR 168m in respect of its investment in Emaar, Turkey goodwill, and other projects expenses. Its worth mentioning that 4th quarter 2010 net income of SR 243 million (before capital gain and exceptional items) is higher than the announced forecast of SR230 million. Also, the net income of the Group for the year 2010 (before capital gain & exceptional items) reached SR 933 million, which is also higher than the full year forecast of SR920m. Certain comparative figures have been reclassified to conform current year presentation.

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