Savola Group — Interim / Quarterly Report 2018

Aug 6, 2018

Savola Group announces the interim financial results for the period ending on 30-06-2018 (Six Months)

2050 · 06/08/2018 15:59:56 · Announcement #51819 · View on Saudi Exchange

Savola Group announces the interim financial results for the period ending on 30-06-2018 (Six Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	140.6	229.3	-	-	-
Gross profit (loss)	1,066.9	1,140	-	908.5	17.44
Operational profit (loss)	234.5	291.4	-	60	290.83
All figures are in (Millions) Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss)	56.3	234.1	-
Gross profit (loss)	1,975.4	2,180.2	-
Operational profit (loss)	294.5	429.6	-
Earning or loss per share, Riyals	0.11	0.44	-
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 net profit for the 2nd Quarter 2018 compared to the net profit achieved for same quarter last year is attributed mainly to the following: - lower gross profit due to lower sales of food and retail sector; - slightly higher operating cost; and - Non recurring net positive impact of SR 62 million for the Group from the gain on disposal of lease hold rights by Panda UAE in Q2 2017. Net profit has decreased despite of the following: - increase in the share of profits from associates; - lower net finance cost; - lower zakat expense; and - impact of share of minority.
Reasons of increase (decrease) for period compared with same period last year	The decrease in the Group net income for the period ended 30 June 2018 compared to the same period last year is attributed to: - lower gross profit due to lower sales of food and retail sector - higher net finance cost Non recurring net positive impact of SR 62 million for the Group from the gain on disposal of lease hold rights by Panda UAE in Q2 2017 and Non recurring net positive impact of the gain from discontinued operations, recognized in Q1 2017. This decrease in net profit is despite of the following: - increase in the share of profits from associates - lower operating cost - lower zakat expense - impact of share of minority and - gain on disposal of investment.
Reasons of increase (decrease) for quarter compared with previous quarter	The recorded net profit for the 2nd Quarter 2018 compared to the net loss for 1st Quarter 2018 is mainly due to the following: - increase in the revenue and gross profits; - increase in the share of profits from associates; - lower net finance cost. Net profit has increased despite of the following: - increase in the operating cost; - gain on disposal of investment in Q1 2018; - slight increase in the zakat expense; and - impact of share of minority.
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 June 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). Accordingly, the External Auditor reviewed the financial statements for the period ended 30/06/2018 (six months) and the type of report is review report: an unmodified conclusion.
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 refer to note 17 (New standards and amendments to standards) in the Condensed Consolidated Interim Financial Statements for the period ended June 30, 2018 and June 30, 2017.
Other notes	The total comprehensive income for the 2nd quarter, attributable to Shareholders of the Company, reached SAR 162.3 million, as compared to the total comprehensive income of SAR 199.6 million in the corresponding quarter of the last year representing a decrease of 18.7% and as compared to the previous quarter total comprehensive loss of SAR 206.4 million. The total comprehensive loss for the period ended 30 June 2018, attributable to Shareholders of the Company, reached SAR 44.1 million, as compared to the total comprehensive income of SAR 210.4 million in the corresponding period of the last year. The net revenues for Q2, 2018 reached SAR 6.2 billion compared to SAR 6.7 billion for the same quarter of last year, a decline of 7.5% The net revenues for the period ended 30 June 2018 reached SAR 11.3 billion compared to SAR 12.4 billion in the corresponding period of the last year, a decline of 8.9 %. The equity attributable to shareholders of the parent Company (without minority interest) for the current period reached SAR 8.2 billion compared to SAR 8.4 billion for the same period of last year representing a decrease of 2.4% We would like to inform the investors that the condensed consolidated interim financial statements of the Group for the second quarter ended June 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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