Savola Group reports SR214 mln profit in Q2‎

The net profit after zakat and tax for the Savola Group rose to 214 million riyals during the second quarter, compared to 200 million riyals during the same quarter of the previous year, at a rate of 7%.

This came after today’s announcement of the financial results for the period ending on 30-06-2022 “6 months”.

The operational profit amounted to 504 million riyals during the second quarter, compared to 414 million riyals during the same quarter of the previous year, an increase of 22%.

The gross profit amounted to 1.24 billion riyals during the second quarter, compared to 1.11 billion riyals during the same quarter of the previous year, an increase of 12%.

The net profit after zakat and tax during the current period amounted to 485 million riyals, compared to 354 million riyals during the same period of the previous year, a growth of 37%.

Profits per share during the current period amounted to 0.91 riyals, compared to 0.66 riyals during the same period of the previous year.

The Group recorded net profit during Q2 2022 amounting to SAR 214 million versus net profit of SAR 200 million for the same quarter last year. The increase in net profit is mainly attributed to the following:

– Increase in the gross profit primarily due to improved margins and increase in volume in the Food Processing segment; and

– Higher share of profits from associates.

The increase in net profit is despite the following:

– Higher operating expenses;

– Higher net finance cost; and

– Higher zakat and income-tax expense.

The Group reported Revenues of SAR 6.9 billion during Q2 2022 compared to SAR 5.9 billion for the same quarter last year, showing a 17% increase.

The Group recorded net profit during Q2 2022 amounting to SAR 214 million versus net profit of SAR 271 million for the previous quarter ended 31 March 2022. The decrease in net profit is mainly attributed to the following:

– Decrease in gross profit due to lower sales volume in the Food Processing segment and lower sales in the Retail segment; and

– Higher net finance cost

The decrease in net profit is despite the following:

– Lower operating cost; and

– Lower zakat and income-tax expense.

The Group reported Revenues of SAR 6.9 billion during Q2 2022 compared to SAR 7.5 billion for the previous quarter ended 31 March 2022, showing an 8.7% decline.

The Group recorded net profit during the six-months ended 30 June 2022 amounting to SAR 485 million versus net profit of SAR 354 million for the same period last year. The increase in net profit is mainly attributed to the following:

– Increase in gross profit primarily due to improved pricing and higher sales volume in the Food Processing segment; and

– Higher share of profits from associates.

The increase in net profit is despite the following:

– Higher operating expenses;

– Higher net finance cost; and

– Higher zakat and income-tax expense.

The Group reported Revenues of SAR 14.4 billion during the six-month period ended 30 June 2022 compared to SAR 11.9 billion for the same period last year, showing a 21% increase.

Additional Information:

Revenue by segment before inter segment eliminations:

For the six-month period ended 30 June 2022 as compared to the same period in the previous year, revenues increased in the Food Processing and Frozen Foods segments by 51% and 5%, respectively. While revenues decreased in the Retail and Food Services segments by 6% and 2% respectively, compared to the same period in the previous year.

The increase in revenue in the Food Processing segment during the current period as compared to the same period in the previous year is mainly due to higher volumes and increases in commodity prices.

Net profit by segment:

For the six-month period ended 30 June 2022 as compared to the same period in the previous year, net profit from the Food Processing segment increased by 45.5%.

The Retail segment recorded a net loss of SAR 107 million in the six-month period ended 30 June 2022 compared to a net loss of SAR 79 million in the same period in the previous year.

For the six-month period ended 30 June 2022 as compared to the same period in the previous year, net profit from the Food Services and Frozen Foods segments declined by 5.5% and 8%, respectively.

The Condensed Consolidated Financial Statements for the period ended 30 June 2022, will be available through the following link on Savola’s website, and Savola’s Investment Relation App after sending it to the relevant authorities, through the following link: http://www.savola.com/SavolaE/Financial_Reports.php

The quarterly investor presentation will be available on Savola’s website within the Investors section at the following link:

https://www.savola.com/en/investors/investor-relations/financial-information/earnings-presentations