Savola Group — Interim / Quarterly Report 2011

Apr 19, 2011

SAVOLA GROUP ANNOUNCES ITS FINANCIAL RESULTS FOR THE PERIOD ENDED 31 MARCH 2011 (FIRST THREE MONTHS)

2050 · 19/04/2011 08:52:53 · Announcement #21369 · View on Saudi Exchange

SAVOLA GROUP ANNOUNCES ITS FINANCIAL RESULTS FOR THE PERIOD ENDED 31 MARCH 2011 (FIRST THREE MONTHS)

The Savola Group announced its interim consolidated financial results for the period ended 31 March2011:

1) First Quarter ended 31 March 2011 Savola achieved net income of SR165.2 Million decrease of 58 % compared to the same quarter last year of SR394 Million, and an increase of 8160% compared to SR 2 million for the fourth quarter last year,

2) Gross profit for first quarter ended 31 March 2011 amounted to SR863 Million, an increase of 7.3% compared to same quarter last year SR804.5 Million.

3) Operating profit for First quarter ended 31 March 2011 amounted to SR288.3Million, a decrease of 12.9% compared to same quarter last year SR 331.1 Million.

4) Earnings per share for the First Three months ended 31 March 2011 were SR 0.33 as compared to SR 0.79 for the same period last year.

5) Revenues for 1st quarter ended 31 March 2011 amounted to SR 5.6 Billion and an increase of 16.7% compared to same quarter last year of SR 4.8 Billion.

6) Dr. Abdulraouf M. Mannaa, Managing Director of Savola, attributed the decrease in the Groups net income for 1st quarter 2011 mainly to the capital gain of SR 196 Million from 30% of Herfy Co. IPO (Which the Group owns a major stake) during first quarter of 2010. Despite the increase in gross profit for the group for the first three months of the current year by 7.3% as compared to the same period last year, the percentage of these profits to net revenues has decreased by 1.5% as compared to same period last year. This drop is mainly due to higher prices of raw material (commodity prices) globally, which has impacted negatively on the margins. The reason of decrease in operating profit by 12.9% during the first three months of the year 2011 is mainly due to the increase in selling, marketing and administrative expenses for the retail stores opened by the Group during last twelve months. Certain comparative figures have been reclassified to conform to the current years presentation.

On other hand, the Managing Director of Savola, would like to mention that 1st quarter net income before capital gain reached SR 165 million is above the forecast, which was estimated at SR160 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 225 million for second quarter of2011, God willing.

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.