Savola Group — Interim / Quarterly Report 2017

Nov 5, 2017

Savola Group announces the interim financial results for the period ending on 30-09-2017 (Nine Months)

2050 · 05/11/2017 08:53:32 · Announcement #48460 · View on Saudi Exchange

Savola Group announces the interim financial results for the period ending on 30-09-2017 (Nine Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	829	179.5	361.84	229.3	261.54
Gross profit (loss)	1,041.7	1,182.5	-	1,140	-
Operational profit (loss)	280.2	354.2	-	292.5	-
All figures are in (Millions) Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss)	1,063.1	552.4	92.45
Gross profit (loss)	3,221.8	3,788.5	-
Operational profit (loss)	711.7	1,151.3	-
Earning or loss per share, Riyals	1.99	1.03	-
All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year	The increase in the Group net income for 3rd Quarter 2017 compared to the same quarter last year is mainly attributed to the following: - higher share of profit from associates; - lower operating expenses; - lower net finance cost; - Gain on disposal of 2% ownership interest in Almarai, as announced earlier on Tadawul; - Lower zakat and tax; and - lower share of minority This increase in net income is despite of lower gross profit, mainly due to lower sales and lower margins in Retail sector.
Reasons of increase (decrease) for period compared with same period last year	Increase in the Group net income for the period ended 30 September 2017 compared to the same period last year is 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 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 lower sales and lower margins in Retail sector; and - higher share of minority
Reasons of increase (decrease) for quarter compared with previous quarter	Increase in the Group net income for the quarter ended 30 September 2017 compared to the previous quarter ended 30 June 2017 is due to: - Higher share of profit from associates; - Gain on disposal of 2% ownership interest in Almarai; as announced earlier on Tadawul. - Lower operating cost; and - Lower share of minority. This increase in net income is despite: - lower gross profit, mainly due to lower sales and lower margins in Retail sector; - Higher net finance cost and - Higher zakat and tax.
External auditor's report containing reservation	Items, elements and notes of the comparatives Condensed Consolidated Interim Financial Statements have been redisplayed, regrouped and reclassified to meet with the applied accounting policies for the current period 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 21 (Explanation of transition to IFRSs) in the Condensed Consolidated Interim Financial Statements for the period ended September 30, 2017 and September 30, 2016.
Other notes	The Comprehensive Income for the third quarter, attributable to Shareholders of the Company, reached SAR 780.6 million, as compared to the corresponding quarter of the last year of SAR 100.8 million, an increase of 674.4% as compared to the previous quarter of SAR 199.6 million, an increase of 291%. The Comprehensive Income for the period, attributable to Shareholders of the Company, for the (nine months) ended 30 September 2017 amounted to SAR 991 million, as compared to the corresponding period of SAR 194.6 million of the last year, an increase of 409.2%. The net revenues for Q3 2017 reached SAR 5.7 billion compared to SAR 6.2 billion for the same quarter of last year a decline of (-8%) whereas the net revenues for the nine-month period of 2017 reached SAR 18.2 billion compared to SAR 19.7 billion for the same period of last year representing a decrease of (-7.6%). The equity attributable to shareholders of the parent company (without minority interest) for the period reached SAR 9.2 billion compared to SAR 9.9 billion for the same period of last year representing a decrease of (-7.1%)> We would like to inform the investors that the condensed consolidated interim financial statements of the Group for the period ended September 30, 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

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