Savola Group announces its Interim Financial Results for the Period Ended on 31/03/2026 (Three Months)

Factor Supporting Revenue:

- Food Processing Segment: Revenue increase driven mainly by increased volumes in the Edible Oil and Pasta categories.

Factors Offsetting Revenue:

- Retail Segment : Revenue marginally lower, reflecting competitive market dynamics, with the decline partially offset by new store openings and e-commerce incremental sales,

- Lower revenues reported in the Food Services segment, and

- Lower revenues reported in the Frozen Foods segment, due to market conditions.

In line with International Financial Reporting Standards (IFRS), revenues of the comparative period exclude the results of the deconsolidated business in Turkey.

Key Drivers of Increase in Net Profit:

1) Food Processing segment:

a. Net profit increased to SAR 219 million in Q1 2026, from SAR 130 million in Q1 2025, driven by higher revenues, improved margins, as well as enhanced cost efficiencies.

b. In addition, a non-recurring gain amounting to SAR 43 million (Savola share: SAR 41 million), related to disposal of operations in Sudan was recorded in Q1 2026 (reported under profit from discontinued operations).

2) Retail segment:

Retail Segment reported a marginal improvement in profitability, with net profit increasing from SAR 39 million in Q1 2025 to SAR 40 million in Q1 2026, driven by improved margins, despite higher operating expenses associated with new store openings still in the ramp-up phase and continued investment in Customer Experience Revival (CXR) program.

3) Food Services segment:

The Food Services segment reported improved operational performance, with the net loss decreasing from SAR 19 million in Q1 2025 to a net loss of SAR 4 million in Q1 2026.

4) Other Contributing Factors:

The improvement in net profit was further supported by lower net operating expenses, higher finance income, and lower income tax expense.

Offsetting Factors:

Frozen Food segment: Net profit decreased marginally from SAR 24 million in Q1 2025 to SAR 23 million in Q1 2026, mainly due to market dynamics.

The increase in revenues was mainly driven by seasonal consumption patterns, resulting in higher revenues across the Food Processing, Retail, and Frozen Foods segments, partially offset by a decline in the Food Services segment.

Key Drivers of Increase in Net Profit:

1) The increase is mainly attributable to higher revenues and improved margins resulting from seasonal consumption patterns, as well as enhanced cost efficiencies, primarily in the Food Processing segment.

2) In addition, a non-recurring gain amounting to SAR 43 million (Savola share: SAR 41 million), related to disposal of operations in Sudan was recorded in Q1 2026 (reported under profit from discontinued operations).

Offsetting Factors:

1) Non-recurrence of net impairment reversal on non-current assets recorded in Q4 2025;

2) Absence of a non-recurring gain related to the deconsolidation of business in Turkey amounting to SAR 34 million (Savola share: SAR 32 million), which was recorded in Q4 2025.

The interim condensed consolidated financial statements for the three months period ended March 31, 2025 were reviewed by another auditor who expressed an unmodified conclusion on that information on May 7, 2025 (corresponding to Dhul Qadah 9th, 1446H).

Food Processing – SAR 3.61 billion (Q1 2025: SAR 3.57 billion);

Retail – SAR 3.32 billion (Q1 2025: SAR 3.33 billion);

Food Services – SAR 250 million (Q1 2025: SAR 269 million); and

Frozen Food – SAR 221 million (Q1 2025: SAR 235 million).

Segment Profitability Analysis:

Food Processing – Profit of SAR 219 million (Q1 2025: Profit of SAR 130 million);

Retail – Profit of SAR 40 million (Q1 2025: Profit of SAR 39 million);

Food Services – Loss of SAR 4 million (Q1 2025: Loss of SAR 19 million); and

Frozen Food – Profit of SAR 23 million (Q1 2025: Profit of SAR 24 million).

Retail Segment

Panda Retail Company delivered revenues broadly in line with the same period last year. New store openings and incremental e-commerce sales offset a decline in like-for-like store performance. Gross profit margin improved marginally compared to Q1 2025, reflecting continued quality of earnings.

Net operating expenses increased compared to the same period last year, primarily due to new store openings that are still in the ramp-up phase and have not yet reached maturity. Investment in the Customer Experience Revival (CXR) program continued, in line with the strategy to build a scalable and operationally efficient retail platform.

Exit from Non-Core Market:

During Q1 2026, the Group disposed its operations in Sudan for a total consideration of SAR 52.5 million, resulting in a gain of SAR 43 million (Savola share: SAR 41 million).

Finance Cost Analysis:

Net Financing Cost on Net Debt – SAR 12 million (Q1 2025: SAR 31 million);

Interest Expense on Lease Liabilities – SAR 56 million (Q1 2025: SAR 51 million);

Bank Commission – SAR 3 million (Q1 2025: SAR 3 million);

Foreign Exchange Loss, Net – SAR 8 million (Q1 2025: SAR 1 million); and

Others – SAR 1 million (Q1 2025: SAR -1 million).

Geopolitical Developments:

The Group continues to monitor the regional geopolitical developments and their potential impact on Saudi Arabia and the broader GCC environment. While the situation remains evolving, the Group maintains a robust operational framework to manage associated risks. These developments have not had a material impact on Group's financial statements for the period ended March 31, 2026, however, given the evolving nature of the conflict, the potential impact on the Group’s business will continue to be assessed on future reporting dates.

The Interim Condensed Consolidated Financial Statements for the period ended March 31, 2026, will be available on Savola’s website after sending it to the relevant authorities, through the following link:

https://www.savola.com/en/investors/financial-statements

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

https://www.savola.com/en/investors/earnings-presentations