Savola Group announces its Interim Financial Results for the Period Ended on 30/06/2025 (Six Months)

- A 9.5% increase in revenues of the Retail segment, supported by an expanded store footprint and the positive impact of the Customer Experience Revival (CXR) program executed by Panda Retail Company.

- Higher revenues in the Food Processing segment driven by:

a. Higher volumes and higher commodity prices in the Edible oil segment, despite lower volumes and lower prices in the Sugar segment; and,

b. The consolidation of United Sugar Company of Egypt, which was classified as an associate in the comparative period.

In line with International Financial Reporting Standards (IFRS), revenues of the comparative period exclude the results of divested businesses in the Islamic Republic of Iran (Iran) and discontinued operations in the Republic of Sudan (Sudan).

During 2024, the Group executed a series of transactions, including a rights issue, capital reduction, distribution of its stake in Almarai, debt repayment, and the sale of its operations in Iran. As a result, the current period’s reported results should be compared against net results after excluding the impact of the above transactions for the same period last year.

On this basis, the net profit of SAR 105.7 million in Q2 2025 represents an increase of SAR 112 million over the net loss of SAR 6.3 million in Q2 2024, after excluding the impact of the above transactions.

The reconciliation from reported net profit of SAR 135.4 million in Q2 2024 to the net loss of SAR 6.3 million, after excluding the impact of the above transactions, is as follows:

- Less: Share of profit from the distributed investment in Almarai which amounted to SAR 210.8 million.

- Less: net profit attributable to Shareholders of the Company from discontinued operations which amounted to SAR 23.1 million.

- Add: Financial charges related to debt settled in 2024 which amounted to SAR 92.2 million.

The increase in net profit after excluding the impact of the above transactions is mainly driven by:

-Retail Segment: Net profit increased from SAR 6 million to SAR 9.4 million due to the impact of CXR program.

- Food Processing Segment: Net profit rose from SAR 33.2 million to SAR 55.5 million, largely driven by edible oil volume growth in Saudi Arabia, other GCC countries, and Levant markets.

- Food Services (Herfy): Shifted from a net loss of SAR 24 million to a net profit of SAR 1 million.

- An improvement in the Group’s share of results from associates (excluding Almarai and United Sugar Company Egypt), shifting from an adjusted share of loss of SAR 13 million to a share of profit of SAR 8 million.

- Higher other operating income primarily due to reversal of accruals no longer required amounting to SAR 52.7 million, partly off-set by net loss on derecognition of certain non-current assets impacted by a regulatory authority's project (SAR 7.9 million).

- Lower zakat expense; and

- Lower income tax expense.

- Partly offset by higher operating expenses and higher net finance cost primarily due to the consolidation of United Sugar Company of Egypt in the current period, which was classified as an associate in the comparative period, and additional lease arrangements.

The decrease in revenue is mainly attributed to seasonal consumption patterns.

The decrease in net profit is mainly attributable to:

- Seasonal consumption patterns;

- Lower share of profit from associates; and

- Higher net finance cost.

The decrease in net profit is despite the following:

- Lower operating expenses;

- Higher other operating income primarily due to reversal of accruals no longer required amounting to SAR 52.7 million, partly off-set by net loss on derecognition of certain non-current assets impacted by a regulatory authority's project (SAR 7.9 million).

- Lower zakat expense; and

- Lower income tax expense.

- A 6% increase in revenues of the Retail segment, supported by an expanded store footprint and the positive impact of the Customer Experience Revival (CXR) program executed by Panda Retail Company.

- Higher revenues in the Food Processing segment driven by:

a. Higher volumes and higher commodity prices in the Edible oil segment, despite lower volumes and lower prices in the Sugar segment.

b. The consolidation of United Sugar Company of Egypt, which was classified as an associate in the comparative period;

c. A 4% increase in revenues in the Frozen Foods segment.

The increase in Revenues is despite lower revenue reported in the Food Services segment.

In line with International Financial Reporting Standards (IFRS), revenues of the comparative period exclude the results of divested businesses in the Islamic Republic of Iran (Iran) and discontinued operations in the Republic of Sudan (Sudan).

During 2024, the Group executed a series of transactions, including a rights issue, capital reduction, distribution of its stake in Almarai, debt repayment, and the sale of its operations in Iran. As a result, the current period’s reported results should be compared against net results after excluding the impact of the above transactions for the same period last year.

On this basis, the net profit of SAR 294.9 million during the six-month period ended 30 June 2025 represents an increase of SAR 130.8 million over the net profit of SAR 164.1 million during the six-month period ended 30 June 2024, after excluding the impact of the above transactions.

The reconciliation from reported net profit of SAR 484.1 million during the six-month period ended 30 June 2024 to the net profit of SAR 164.1 million, after excluding the impact of the above transactions, is as follows:

- Less: Share of profit from the distributed investment in Almarai which amounted to SAR 447.4 million.

- Less: net profit attributable to Shareholders of the Company from discontinued operations which amounted to SAR 54.3 million.

- Add: Financial charges related to debt settled in 2024 which amounted to SAR 181.7 million.

The increase in net profit after excluding the impact of the above transactions is mainly driven by:

- Retail Segment: Net profit increased from SAR 39.2 million to SAR 48.6 million due to the impact of CXR program;

- An improvement in the Group’s share of results from associates (excluding Almarai and United Sugar Company Egypt), shifting from an adjusted share of loss of SAR 15 million during the six-month period ended 30 June 2024 to a share of profit of SAR 18 million;

- Higher other operating income primarily due to reversal of accruals no longer required amounting to SAR 52.7 million, partly off-set by net loss on derecognition of certain non-current assets impacted by a regulatory authority's project (SAR 7.9 million).

- Lower net finance cost, primarily due to impact of Egyptian Pound devaluation during Q1 2024 amounting to SAR 109 million, partially offset by impact of consolidation of United Sugar Company of Egypt in the current period;

- Lower zakat expense; and

- Lower income tax expense.

Partly offset by higher operating expenses due to the consolidation of United Sugar Company of Egypt in the current period, which was classified as an associate in the comparative period, and additional lease arrangements.

- Financial charges on borrowings (SAR 219 million);

- Interest expense on lease liabilities (SAR 102 million);

- Bank commission (SAR 16 million);

- Foreign exchange loss, net (SAR 5 million);

- Unwinding of discount on site restoration (SAR 3 million); and

- Commission income on bank deposits (SAR 88 million).

The Net Finance Cost during the six-month period ended 30 June 2024 comprises the following:

- Financial charges on borrowings (SAR 357 million);

- Interest expense on lease liabilities (SAR 96 million);

- Bank commission (SAR 11 million);

- Foreign exchange loss, net (SAR 122 million);

- Unwinding of discount on site restoration (SAR 2 million);

- Commission income on bank deposits (SAR 48 million); and

- Positive fair value of options (SAR 2 million).

For the six-month period ended 30 June 2025, the net earnings per share were SAR 0.99, calculated by dividing the net profit attributable to shareholders amounting to SAR 294.9 million, by the weighted average number of shares of 298.7 million. For the six-month period ended 30 June 2024, the earnings per share were SAR 0.53, calculated by dividing the net profit attributable to shareholders amounting to SAR 484.1 million, by the weighted average number of shares of 905.6 million.

In accordance with International Accounting Standard 33, 'Earnings per Share', the weighted average number of shares for the six-month period ended 30 June 2024 was adjusted to account for the impact of capital increase executed through rights issue. The weighted average number of shares was also adjusted by deducting the effect of shares held under employees’ share based payment plan amounting to 1,278,866 shares for the current period, compared to 5,570,362 shares for the same period in the previous year.

The Interim Condensed Consolidated Financial Statements for the period ended 30 June 2025, will be available through the following link 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