Savola Group — Interim / Quarterly Report 2018

Nov 6, 2018

Savola Group announces its interim Financial results for the period ending on 2018-09-30 ( Nine Months )

2050 · 06/11/2018 15:42:42 · Announcement #52550 · View on Saudi Exchange

Savola Group announces its interim Financial results for the period ending on 2018-09-30 ( Nine Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	5,212	5,595.8	-6.858	6,147.5	-15.217
Total Profit (Loss)	932	1,053.8	-11.558	1,066.9	-12.644
Profit (Loss) Operational	169.9	280.2	-39.364	234.5	-27.547
Net Profit (Loss) after Zakat and Tax	-50.7	829	-	140.7	-
Total Comprehensive Income	-554.4	780.6	-	162.3	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	16,467.6	18,035.9	-8.695
Total Profit (Loss)	2,907.4	3,234	-10.098
Profit (Loss) Operational	464.4	709.8	-34.573
Net Profit (Loss) after Zakat and Tax	5.6	1,063.1	-99.473
Total Comprehensive Income	-598.5	991	-
Total Share Holders Equity (after deducting minority equity)	7,634.2	9,194.8	-16.972
Profit (Loss) per Share	0.01	1.99
All figures are in (Millions) Saudi Arabia, Riyals

	Accumulated Losses	Capital
	0	5,339,806,840

Element List	Explanation
Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year	The net loss for the current quarter as compared to the net income achieved for the same quarter last year is mainly attributed to the following:

-Lower gross profit mainly due to lower sales and lower margins;

-Lower share of profit from associates;

-Higher net finance cost mainly due to currency exchange losses;

-Gain on disposal of 2% ownership interest in Almarai, as recorded in the same quarter of previous year and announced on Tadawul; and

-Lower share of minority.

These results were recorded despite the following:

-Lower operating expenses; and

-Lower zakat and income tax expense. Reason for increase (decrease) in net profit for current quarter compared to the previous quarter The net loss for the current quarter as compared to the net income achieved in the previous quarter is due to:

-Lower gross profit mainly due to lower sales in food and retail sector ;

-Higher share of losses from associates;

-Higher net finance cost due to currency exchange losses; and

-Lower share of minority.

These results were recorded despite the following:

-Lower operating cost; and

-Lower zakat and income tax expense. Reason for increase (decrease) in net profit for current period compared to the similar period of the previous year Decrease in the Group’s net profit for the period ended 30 September 2018 as compared to the similar period last year is mainly attributed to:

-Lower gross profit, mainly due to lower sales of food and retail sectors;

-Gain on disposal of 2% ownership interest in Almarai, recorded in the comparable period, as announced 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, recorded in the comparable period;

-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, recorded in the comparable period, as announced on Tadawul;

-lower share of profit from associates; and

-Higher net finance cost due to currency exchange losses.

These results were recorded despite the following:

-Lower operating cost; and

-Lower zakat and income tax expense. Type of the external auditor's opinion Unmodified opinion External auditor's report containing reservation Independent auditors’ report on review of interim financial statements includes the following conclusion:

“Based on the review, nothing has come to our attention that causes us to believe that the accompanying September 30, 2018 condensed consolidated interim financial statements of Savola Group Company and its subsidiaries are not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial Reporting’ that is endorsed in the kingdom of Saudi Arabia”. Reclassifications in quarter financial result 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 17 (New standards and amendments to standards) in the Condensed Consolidated Interim Financial Statements for the period ended September 30, 2018 and September 30, 2017. Additional Information We would like to inform the investors that the condensed consolidated interim financial statements of the Group for the period ended September 30, 2018 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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