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Savola Group announces the interim financial results for the period ended on 30-06-2019 (Six Months)

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 6,023.96,147.6-2.0125,387.911.804
Gross Profit (Loss) 1,163.21,066.99.0261,065.59.169
Operational Profit (Loss) 363.7234.555.095205.976.639
Net Profit (Loss) after Zakat and Tax 110.2140.7-21.6776.31,649.206
Total Comprehensive Income 100162.3-38.38510.4861.538
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 11,411.811,255.61.387
Gross Profit (Loss) 2,228.61,975.412.817
Operational Profit (Loss) 569.5294.593.378
Net Profit (Loss) after Zakat and Tax 116.656.3107.104
Total Comprehensive Income 110.4-44.1-
Total Share Holders Equity (after Deducting Minority Equity) 7,237.88,215.5-11.9
Profit (Loss) per Share 0.220.11
All figures are in (Millions) Saudi Arabia, Riyals
Accumulated LossesCapital
05,339,806,840
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to The decrease in the net profit for the 2nd Quarter 2019 compared to the net profit for the same quarter last year is attributed mainly to the following:

- decrease in the share of profit from an associate;

- higher zakat and tax expense; and

- increase in the net finance cost resulting from the adoption of new leasing standard (IFRS 16) applied during 2019 and the foreign exchange losses.

- lower sales in the food sector;

The decrease in the net profit recorded despite of the following:

-decrease in the operating cost;

-increase in the sales and gross profits of retail sector;

-increase in the gross profits of food sector; and

-a non-recurring zakat and tax provision reversal relating to prior years’ assessments.

In addition to the net income performance as explained above, the decrease in the total comprehensive income recorded for the 2nd Quarter 2019 compared to total comprehensive income for the same quarter last year is mainly due to

- the increase in the foreign exchange losses relating to the overseas subsidiaries.

The total comprehensive income achieved is despite of the following:

-increase in the share of other comprehensive income relating to “investments in equity accounted investees”; and

- increase resulting from the fair value change in the “investments at fair value through other comprehensive income”.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to The increase in the net profit for the 2nd Quarter 2019 compared to the 1st Quarter 2019 is mainly due to the following:

- higher sales and gross profit in the retail sector;

- higher gross profit in the food sector; and

- increase in the share of profit from an associate;

Net profit has increased despite of the following:

- increase in the net finance cost mainly due to the foreign exchange losses;

-slight increase in the zakat expense; and

- higher non-recurring zakat and tax provision reversal relating to prior years’ assessments recorded in Q1 2019 in comparison to Q2 2019.

-increase in the operating cost.

In addition to the net income performance as disclosed above, the total comprehensive income achieved for the 2nd Quarter 2019 compared to the 1st Quarter 2019 is mainly due to the increase in the share of other comprehensive income relating to “investments in equity accounted investees”

The total comprehensive income achieved is despite of the following:

-increase in the foreign currency exchange losses relating to the overseas subsidiaries; and

- decrease in the fair value change in the “investments at fair value through Other Comprehensive Income”.

Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to The increase in the net profit for the period ended 30 June 2019 compared to the net profit for same period last year is attributed mainly to the following:

- higher sales and gross profit in retail sector;

- higher gross profit of food sector.

-decrease in the operating cost; and

-a non-recurring zakat and tax provision reversal relating to prior years’ assessments.

This increase in net profit is despite of the following:

- decrease in the share of profit from an associate;

- higher zakat and tax expense;

- increase in the net finance cost resulting from the adoption of new leasing standard (IFRS 16) applied during 2019 and the foreign exchange losses; and

a gain on disposal of investment in the comparable period.

In addition to the net income achieved as disclosed above, the total comprehensive income achieved for the period ended 30 June 2019 compared to the total comprehensive loss for the period ended 30 June 2018 is attributed to the following:

-increase resulting from the fair value change in the “investments at fair value through Other Comprehensive Income”;

-slight decrease in the foreign currency exchange losses relating to the overseas subsidiaries; and

-decrease in the share of other comprehensive loss relating to “investments in equity accounted investees”

Basis of the External Auditor's Opinion Unmodified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion Independent auditors report on review of interim financial statements includes the following conclusion:

Based on our review, nothing has come to our attention that causes us to believe that the accompanying June 30, 2019 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.

Reclassification of Comparison Items 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 (Amendments to standards and standards issued and not yet effective) in the Condensed Consolidated Interim Financial Statements for the period ended June 30, 2019 and June 30, 2018.
Additional Information We would like to inform the investors and shareholders that the condensed consolidated interim financial statements of the Group for the second quarter ended June 30, 2019 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

The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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