‎“Savola” profits jumped 45% during Q1, to SR393 million‎

Net profit after zakat and tax for the Savola Group jumped to 393 million riyals during the first quarter, compared to 271 million riyals in the same quarter of last year, by 45%. This came after today’s announcement of the preliminary financial results for the period ending on 03-31-2023 ( 3 months).

The operational profit amounted to 738 million riyals in the first quarter, compared to 529 million riyals in the same quarter of the previous year, an increase of 40%.

As for gross profit, it amounted to 1.5 billion riyals in the first quarter, compared to 1.28 billion riyals in the same quarter of the previous year, an increase of 17%.

Earnings per share in the current period amounted to 0.74 riyals, compared to 0.51 riyals in the same period last year.

The group recorded a net profit during the first quarter of 2023 in the amount of 393 million riyals, compared to a net profit of 271 million riyals for the same quarter of the previous year. The increase in net profit is mainly due to the following:

The increase in net profit in the food processing sector

– The increase in the group’s share in the profits of associate companies

A capital gain of 18.5 million Saudi riyals from the sale of the investment in the Savola Morocco Company.

– Refund of customs fees amounting to 23.3 million riyals by the Zakat, Tax and Customs Authority in the Kingdom of Saudi Arabia.

The rise in net profit came despite:

High operating expenses

High net financing cost

Increased zakat and income tax expenses

The group’s revenues in the first quarter of 2023 amounted to 7.8 billion riyals, compared to 7.5 billion riyals, an increase of 4.3% compared to the same quarter of the previous year.

The group recorded a net profit for the first quarter of the year 2023 amounting to 393 million riyals, compared to the net profit achieved in the previous quarter ending on December 31, 2022 AD, amounting to 94.5 million riyals, and the increase in net profit is mainly due to the following reasons:

The increase in net profit in the food processing sector

– The increase in the group’s share in the profits of associate companies

– Low operating expenses

– Refund of customs fees amounting to 23.3 million riyals by the Zakat, Tax and Customs Authority in the Kingdom of Saudi Arabia.

The rise in net profit came despite:

– Decreased capital gain from selling investments

High net financing cost

Increased zakat and income tax expenses

The group’s revenues in the first quarter of 2023 amounted to 7.8 billion riyals, compared to 6.6 billion riyals, an increase of 18.3% compared to the previous quarter ending on December 31, 2022.

The company said that the comparative items, elements and explanations of the condensed consolidated interim financial statements have been re-presented, compiled and classified to comply with the applicable accounting policies for the current period, which were prepared in accordance with International Financial Reporting Standards (IFRS) approved in the Kingdom of Saudi Arabia. For more information, you can refer to Clarification No. 19 (amendments to standards and standards issued but not yet effective) in the condensed consolidated interim financial statements for the period ending on March 31, 2023 AD and March 31, 2022 AD.

Revenue by sector before inter-segment eliminations:

Revenues for the three months ended March 31, 2023, compared to the same period of the previous year, increased in the retail, food processing, and frozen food sectors by 11%, 2%, and 15%, respectively.

While revenues in the food services sector decreased by 16% compared to the same period of the previous year.

The increase in the revenues of the retail sector during the current period compared to the same period of the previous year is mainly due to the increase in sales.

Net profit by sector:

The net profit for the three-month period ending on March 31, 2023, compared to the same period of the previous year, in the food processing, frozen food, and investment sectors increased by 81% and 13%, respectively.

The retail sector recorded a net loss of 14 million riyals for the three-month period ending on March 31, 2023, compared to a net loss of 35 million riyals for the same period of the previous year.

The food services sector also recorded a net loss of 13 million riyals during the three-month period ending on March 31, 2023 AD, compared to a net profit of 28 million riyals for the same period of the previous year.

The consolidated financial statements for the period ending on March 31, 2023 will be available on the company’s website and the Savola Group’s investor relations application for smartphones and tablets.