Savola Group — Earnings Release 2017

Mar 26, 2018

Savola Group announces the annual financial results for the period ending on 31-12-2017

2050 · 26/03/2018 16:03:44 · Announcement #49854 · View on Saudi Exchange

Savola Group announces the annual financial results for the period ending on 31-12-2017

Element	Current year	Previous year	% Change
Net profit (loss)	1,025.6	-363.3	-
Earning or loss per share, Riyals	1.92	-0.68	-
Gross profit (loss)	4,390.5	4,652.9	-5.64
Operational profit (loss)	799.6	472.6	69.19

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

Element	EXPLAINATION
Reasons of annual financial results	The reason for achieving profit for the year 2017 compared to the loss for the previous year mainly attributed to: - Gain on disposal of 2% ownership interest in Almarai; as announced earlier on Tadawul;- Non-recurring net positive impact for the Group of SAR 62 million from gain on disposal of leasehold rights by Panda Retail Company, of its Hyper Panda store in Dubai Festival City Mall, UAE;- Non-recurring net positive impact for the Group of SAR 30 million due to recognition of dilution gain net of option cost, upon deconsolidation of United Sugar Company Egypt, considered as an associate effective March 28, 2017, after issuance of shares to EBRD as announced earlier on Tadawul; - Reduced losses from USCE; - Higher share of profit from associates despite of an increase in the share of loss from an associate; - Lower impairment loss;- Lower operating expenses; - Lower net finance cost; and - Lower zakat and tax. This increase in net income is despite of: - Lower gross profit mainly due to Foods sector, whereas the sales decline is attributed to both Food and Retail sectors; and- Higher share of minority.
Reclassifications in annual financial results	Items, elements and notes of the comparatives Consolidated Financial Statements have been redisplayed, regrouped and reclassified to meet with the applied accounting policies for the current year, 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 see the note 37 (Explanation of transition to IFRSs) in the Consolidated Financial Statements for the year ended December 31, 2017 and December 31, 2016.
Other notes	Total Comprehensive Income, attributable to Shareholders of the Company, for the year amounted to SAR 567.5 million, as compared to the comprehensive loss of SAR 1.34 billion for the last year representing. Net revenues for the year 2017 reached SAR 23.8 billion compared to SAR 26.3 billion for last year representing a decrease of 9.5%. Equity attributable to shareholders of the parent Company (without minority interest) for the year reached SAR 8.8 billion compared to SAR 8.2 billion for the last year representing an increase of 7.3%. We would like to inform the investors that the consolidated financial statements of the Group for the year ended December 31, 2017 will be uploaded on Savola website after submitting it to the concerned authorities, and can be accessed through the following link: http://www.savola.com/SavolaE/Financial_Reports.php

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.