Savola Group — Interim / Quarterly Report 2015

Oct 19, 2015

Savola Group announces the interim financial results for the period ending on 30-09-2015 (Nine Months)

2050 · 19/10/2015 15:36:14 · Announcement #39966 · View on Saudi Exchange

Savola Group announces the interim financial results for the period ending on 30-09-2015 (Nine Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	371.6	701.4	-	434.4	-
Gross profit (loss)	1,262.8	1,150.7	9.74	1,372.1	-
Operational profit (loss)	510.6	648.2	-	554.4	-
All figures are in (Millions) Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss)	1,276.4	1,638	-
Gross profit (loss)	3,816.5	3,495.1	9.2
Operational profit (loss)	1,451.3	1,850.1	-
Earning or loss per share, Riyals	2.39	3.07	-
All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year	The decrease in the Group net income for 3rd Q 2015 compared to same quarter last year is attributed to the gain recorded on disposal of investment by selling the Group entire stake in Masharef Real Estate Project executed last year same quarter, as a result the Group recorded net capital gain of SAR 187.5 Million, lower share of profit from an associate and disposal of Savola Packaging Systems Co during Q1 of 2015 despite reduced Minority share in income and lower zakat & income tax and higher financial charges. Gross Profit increased for this quarter compared to same quarter of last year due to reduced cost of revenues despite lower revenues due to reduced commodity prices, operating income was lower due to increased operating expenses because of growth in Retail operations compared to same quarter last year.
Reasons of increase (decrease) for period compared with same period last year	The reduction in the Group net income for the period ended September 2015 compared to the same period last year is attributed mainly to reduced share of net income and dividend income from some associates, increased financial charges, zakat and income tax and disposal of Savola Packaging Systems Co during Q1 of 2015 despite increased capital gain on disposal of investments, positive impact of reduced minority interests. Gross Profit increased for the period compared to same period of last year due to the growth in revenues and reduced cost of revenues, operating income was lower due to increased operating expenses because of growth in Retail operations compared to same period last year.
Reasons of increase (decrease) for quarter compared with previous quarter	The decrease for 3rd quarter 2015 net profit compared with the previous quarter is mainly attributed to decreased revenue, which reached SAR 5.9 Billion for this quarter compared to SAR 7.4 Billion for the last quarter, lower gross profit and increased financial charges. This decrease was despite the positive impact of increased share of net income from associates, lower operating expenses, zakat & income tax and minority interest.
Reclassifications in quarterly financial results	Certain comparative figures have been reclassified to conform to this quarter presentation.
Other notes	In accordance with the generally accepted accounting standards in Saudi Arabia, all amounts of income statement related to SPS have been reclassified and net income of SPS for the period ended September 30, 2014 has been reclassified as Income from discontinued operations in the interim consolidated income statement as SPS has been entirely sold as announced in Q1 2015. In this connection Eng. Abdullah M. Noor Rehaimi - Group Managing Director / CEO, highlighted that by the Grace of Allah, the 3rd quarter net income (without capital gain) reached SAR 371.6 Million which is 4.6% higher than the announced forecast of SAR 355 Million. Eng. Abdullah Rehaimi also mentioned that, with regards to the full year of 2015 forecast, the Savola Group is confident in achieving its earlier announced revised forecast of SAR 1.63 Billion net income (before capital gain) for the full year 2015. God willing, despite the current overseas market/economic conditions in the countries it operates and continuing oversupply of commodities, large expansion in retail sector, which has put pressure on the margins.

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