Savola Group — Earnings Release 2014

Feb 22, 2015

Savola Group announces the annual financial results for the period ending on 31-12-2014

2050 · 22/02/2015 15:49:17 · Announcement #37242 · View on Saudi Exchange

Savola Group announces the annual financial results for the period ending on 31-12-2014

Element	Current year	Previous year	% Change
Net profit (loss)	2,072.3	1,704.5	21.58
Earning or loss per share, Riyals	3.88	3.37	-
Gross profit (loss)	4,863.7	4,773.5	1.89
Operational profit (loss)	2,454.7	2,489.7	-1.41

*All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The increase in the net profit for the year ended 31 December 2014 compared with last year is attributed mainly due to continued growth in revenues and increased market share of Retail Sector, the increased share of income from associates, lower zakat and tax, minority share, lower financial charges - net, lower income from discontinued operations despite increase in operating expenses. The Group booked impairment provision of SAR 67.4 million for its investment in Intaj Capital and Swicorp Joussour Company reflected in the full year results. As the Group previously announced on Tadawul the signing of an agreement with a third party for disposal of Savola Packaging Systems Company (SPS) which represents Group's plastic segment. Accordingly, the assets and liabilities of SPS have been classified as (held for sale) in the December 31, 2014 consolidated balance sheet and net income of SPS for the year ended December 31, 2014 has been disclosed as (Income from discontinued operations) in the consolidated income statement. In accordance with the generally accepted accounting standards in Saudi Arabia, amounts relating to SPS in the 2013 consolidated income statement have also been reclassified as (Income from discontinued operations)
Reclassifications in annual financial results	Certain comparative figures have been reclassified to conform to this year presentation.
Other notes	In this connection, the Savola Group MD & CEO stated that, Group has recorded net income for full year of 2014 amounting to SAR 2.07 Billion compared to SAR 1.7 Billion last year, an increase of 21.6%. Whereas, the Group's net income (before capital gain & exceptional items) reached to SAR 1.93 Billion which is 23% higher than last year and 7.2% higher than the forecast of SAR 1.8 Billion announced on Tadawul on 20th January 2014 based on strong retail performance and good performance by the sister companies. It is worth mentioning that the earnings per share for the year ended December 31, 2014 has been computed by dividing the net income attributable to shareholders of the Company for such periods by the number of shares outstanding during such periods. Earnings per share for the year 2013 has been calculated by using weighted average number of shares outstanding 505.66 million shares by taking the first ten month as 500 million shares and for the last two months of the year as 533.98 million shares (after the capital increase) which took place in November 2013.

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