Savola Group — Interim / Quarterly Report 2017

Aug 8, 2017

Savola Group announces the interim financial results for the period ending on 30-06-2017 (Six Months)

2050 · 08/08/2017 08:14:14 · Announcement #47812 · View on Saudi Exchange

Savola Group announces the interim financial results for the period ending on 30-06-2017 (Six Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	229.3	253.5	-	4.8	4,677.08
Gross profit (loss)	1,140	1,332.8	-	1,040.1	9.6
Operational profit (loss)	292.5	458.8	-	138.9	110.58
All figures are in (Millions) Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss)	234.1	372.9	-
Gross profit (loss)	2,180.2	2,605.9	-
Operational profit (loss)	431.5	797.1	-
Earning or loss per share, Riyals	0.44	0.7	-
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 2nd Quarter 2017 compared to the same quarter last year is mainly attributed to the following: - lower gross profit, mainly due to lower sales and lower margins in the Retail sector, - higher share of minority, - higher losses of an associate This decrease in net income is despite: - 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 as announced earlier on Tadawul. - reduced losses from United Sugar Company Egypt (USCE) - lower operating expenses, - lower net finance cost, and - lower zakat and tax.
Reasons of increase (decrease) for period compared with same period last year	Reduction in the Group net income for the period ended 30 June 2017 compared to the same period last year is attributed to: -lower gross profit, mainly due to lower sales and lower margins in the Retail sector, - higher share of minority, This decrease in net income is despite: - non-recurring net positive impact for the Group of SAR 30 million due to recognition of dilution gain upon deconsolidation of USCE, considered as an associate effective March 28, 2017, after issuance of shares to EBRD and recording of option cost as announced earlier on Tadawul. - reduced losses from USCE - lower operating expenses, - lower net finance cost, and -lower zakat and tax.
Reasons of increase (decrease) for quarter compared with previous quarter	Increase in the Group net income for the quarter ended 30 June 2017 compared to the previous quarter ended 31 March 2017 is due to: - higher sales and higher gross profit in both Foods and Retail sectors, - higher share of profit from an associate, - lower net finance cost, -lower zakat and tax, and - net positive impact of non-recurring items. This increase in net income is despite: - higher share of minority, and - higher operating expenses
Reclassifications in quarterly financial results	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 20 (Explanation of transition to IFRSs) in the Condensed Consolidated Interim Financial Statements for the period ended in June 30, 2017 and June 30, 2016.
Other notes	For the second quarter Savola Comprehensive Income for the period attributable to Shareholders of the Company reached SAR 199.6 million, a decrease of 3.2% as compared to the corresponding quarter of the last year SAR 206.2 million and an increase of 1755.4% as compared to the previous quarter SAR 10.8 million. Savola Comprehensive Income for the period attributable to Shareholders of the Company for the six months ended 30 June 2017 amounted to SAR 210.4 million, an increase of 124.3% as compared to the corresponding period SAR 93.8 million of the last year. Savola Comprehensive Income for the period attributable to Shareholders of the Company for the six months ended 30 June 2017 amounted to SAR 210.4 million, an increase of 124.3% as compared to the corresponding period SAR 93.8 million of the last year.The net revenue for Q2 2017 reached SAR 6.7 Billion compared to SAR 7.1 Billion for the same quarter of last year a decline of -5.6% whereas the net revenue for the six-month period of 2017 reached SAR 12.5 Billion compared to SAR 13.6 Billion for the same period of last year representing a decrease of -8.1%. The equity attributable to shareholders of the parent company (without minority interest) for the period reached SAR 8.4 Billion compared to SAR 9.9 Billion for the same period of last year representing a decrease of -15.2% We would like to inform the investors that the interim consolidated financial statements of the Group for the period ended June 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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