Savola Group Announces its Annual Financial Results for the Year Ended on 31/12/2025.

- Retail Segment: Revenues increased by 6.6%, supported by an store network expansion and the positive momentum of ongoing Customer Experience Revival (CXR) program, together with growth in Omni-channel sales.

- Food Processing Segment: Higher revenues mainly driven by:

a. Higher sales volumes in both Edible oil and Sugar segments,

b. Higher commodity prices in Edible oil segment, partially offset by lower commodity prices in the Sugar segment, and

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

- Frozen Foods Segment: Revenues increased by 5.9% in 2025, compared to the comparative period.

The increase in Revenues was achieved despite lower revenues reported in the Food Services segment.

In accordance with International Financial Reporting Standards (IFRS), reported revenues exclude the results of divested businesses in the Islamic Republic of Iran (Iran) and Turkey, as well as discontinued operations in the Republic of Sudan (Sudan).

This decrease is mainly attributable to several non-recurring items recorded in 2024, along with segment level performance variations, as outlined below:

Key Drivers of the Decrease in Net Profit:

1) Absence of a one-off gain recognized in 2024, on distribution of Savola Group Company’s entire 34.52% stake in Almarai Company (Almarai) to eligible shareholders, amounting to SAR 11.3 billion, net of zakat charge of SAR 288 million.

2) Lower share of results from associates mainly due to the absence of share of profit from the Group’s distributed investment in Almarai to its eligible shareholders (SAR 782 million) during 2024.

3) Retail Segment profitability declined from SAR 154 million to SAR 115 million primarily due to:

a) Higher operating expenses associated with new store openings and continued investment in CXR program, and

b) Non-recurrence of a one-off provision reversal on aged receivables (SAR 16 million) recognized in 2024.

4) Operating expenses also increased during 2025, due to the consolidation of United Sugar Company of Egypt, which had been accounted for as an associate in 2024.

Offsetting Factors Supporting Profitability:

Despite the above, several factors supported the Group’s profitability during 2025:

1) Food Processing segment:

The Food Processing segment reported net profit of SAR 481 million in 2025, compared to a net loss of SAR 1.6 billion in 2024. The improvement is mainly driven by non-recurrence of several losses recorded in 2024 and certain gains recognized in 2025, including the following:

a. Gain related to divestment of business in Turkey amounting to SAR 34 million during 2025.

b. Non-recurrence of a loss related to divestment of operations in Iran with a net impact of SAR 1.1 billion, during 2024.

c. Non-recurrence of a loss related to discontinued operations in Sudan amounting to SAR 0.3 billion, during 2024.

d. Non-recurrence of a loss related to the derecognition of associate investment in United Sugar Company, Egypt amounting to SAR 139 million, of which SAR 97 million was recorded in the Food Processing segment, during 2024. In addition, the net loss on the associated put option liability amounted to SAR 86 million, of which SAR 59 million was recorded in the Food Processing segment, during 2024, which was included in finance costs.

e. Non-recurrence of impairment charge of SAR 307 million for certain non-current assets, recorded during 2024;

f. Lower refund of custom duty from regulatory authority in KSA having a net impact of SAR 9 million in 2025, compared to SAR 19 million during 2024; and

g. Non-recurrence of a SAR 29 million charge related to a startup asset under Munchbox brand, during 2024.

2) Frozen Food segment:

The Frozen Food segment improved from a net loss of SAR 33 million in 2024 to a net profit of SAR 46 million in 2025, mainly due to the non-recurrence of net impairment loss of SAR 76 million for certain non-current assets, recorded during 2024.

3) Food Services segment:

The Food Services segment reported improved operational performance, with the net loss decreasing from SAR 117 million to SAR 77 million, despite recognizing a net impairment loss of SAR 35 million in 2025.

4) Zakat Reversal:

Profitability was supported by a reversal of prior year zakat accruals, net of related expenses, amounting to SAR 247 million, in 2025.

5) Lower income tax expense.

6) Other Operating Income:

Other operating income increased primarily due to reversal of accruals no longer required (SAR 53 million), partially off-set by net loss on derecognition of certain non-current assets (SAR 8 million) impacted by a public development project.

7) Finance income:

Finance income increased mainly due to a gain on settlement of Put Option liability, having a net impact of SAR 40 million.

8) Finance cost:

Finance cost decreased mainly due to the following:

a. Non-recurrence of financial charges related to debt settled in 2024 (SAR 334 million),

b. Non-recurrence of a SAR 20 million premium incurred in 2024 to buy back and cancel the Company’s SAR 1 billion Sukuk facility, and

c. Non-recurrence of SAR 109 million impact from the Egyptian Pound devaluation recognized in Q1 2024, which was offset by increased gross profit margins in Q1 2024.

The decrease was partially offset by the consolidation of United Sugar Company of Egypt during 2025.

9) Other Items:

The impact of discontinued operations, deferred tax on intangible assets and certain other one-off items, including the impact of non-controlling interests, resulted in net loss of SAR 5 million in 2025, compared with a net loss of SAR 22 million in 2024.

Adjusted Net Income

For illustrative purposes, excluding the impacts of the above-mentioned non-recurring items and one-offs – the Group’s adjusted net income amounted to SAR 539 million in 2025 compared to SAR 296 million in 2024, providing additional context on the Group’s underlying operating performance.

The Food Processing segment operated in a year characterized by commodity price volatility and evolving global trade dynamics. The Group maintained focus on procurement discipline, cost efficiency, and operational stability.

Core markets (Arabia and Egypt) continued to anchor performance, while higher-value categories supported improved portfolio balance. On a like-for-like basis, food volumes demonstrated resilience, supported by disciplined pricing and effective supply chain execution.

The Group’s approach remains focused on structural efficiency and sustainable margin stability rather than short-term expansion.

Retail Segment

Panda Retail Company delivered revenue growth of 6.6% to SAR 11.3 billion, supported by measured store expansion and continued execution of the CXR program.

During the year, the business continued to strengthen its operating platform, digital capabilities and customer engagement model, positioning Panda for sustainable growth in an increasingly competitive retail environment.

While near-term margins reflected continued investment in store expansion and customer experience initiatives, these investments are intended to support longer-term operational efficiency and scalability of the retail platform.

Frozen Food Segment

The Frozen Food segment delivered revenue growth of 5.9% in 2025, reflecting continued volume growth and pricing resilience across core categories. The segment demonstrated solid top-line momentum and strengthened market presence, despite some margin pressure resulting from cost inflation.

Food Services Segment

Food Services segment demonstrated improvement in the segment’s operational performance, with the net loss decreasing from SAR 117 million to SAR 77 million, despite recognizing a net impairment loss of SAR 35 million in 2025.

Turkey Strategic Repositioning

During the year, the Group’s edible oils business in Turkey was merged with a leading integrated agribusiness player, resulting in a 15% equity stake in the enlarged entity. The transaction was completed without any cash outflow and resulted in a net gain of SAR 34 million.

This repositioning enhances capital efficiency, reduces standalone exposure to market volatility, and preserves participation in a structurally stronger and more integrated platform.

The Consolidated Financial Statements for the year ended 31 December 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 annual 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