Savola Group’s profits fell by 91% to 874.5 million riyals in 2025

Savola Group’s profits in 2025 declined by 91% to 874.5 million riyals, compared to 9.39 billion riyals in 2024.

According to the company’s statement on the website "Saudi Arabia trading"This decrease is mainly due to several non-recurring items recorded in 2024 AD, in addition to the variation in performance between sectors.

The main factors for the decrease in net profit:

1) Not recording non-recurring profits that were recognized during the year 2024 AD, as a result of distributing the entire Savola Group’s 34.52% stake in Almarai Company to eligible shareholders in Savola, in the amount of 11.3 billion riyals after deducting an amount Zakat amounting to 288 million riyals.

2) Decrease in the group’s share of the results of associate companies, mainly due to the absence of a profit share from the group’s investment in Almarai Company, as the group’s share in this investment was previously distributed to the benefit of eligible shareholders, amounting to 782 million riyals during the year 2024.

3) Decrease in the profitability of the retail sector from 154 million riyals to 115 million riyals, mainly due to:

A- An increase in operating expenses associated with opening new stores and continuing to invest in the Customer Experience Improvement (CXR) program.

B- There is no reversal of a non-recurring provision for obsolete receivables amounting to (16 million riyals), which was recognized in 2024.

4) An increase in operating expenses as a result of the impact of consolidating the financial statements of the Egyptian United Sugar Company during the year 2025, as it was treated accounting as an associate company in the year 2024 AD.

Factors that contributed to supporting profitability:

Despite the above, several factors contributed to supporting the group’s profitability during the year 2025 AD, the most prominent of which are the following:

1) Food manufacturing sector

The food manufacturing sector achieved a net profit of 481 million riyals in 2025 AD, compared to a net loss of 1.6 billion riyals in 2024 AD. This improvement is mainly due to not recording a number of non-recurring losses that were recognized in 2024 AD, in addition to recording some gains in 2025 AD, the most prominent of which are the following:

A- Achieving a gain as a result of exiting from businesses in Turkey worth 34 million riyals during the year 2025. 2024 AD.

C- Not recording a non-recurring loss related to discontinued operations in Sudan, amounting to 0.3 billion riyals, during the year 2024 AD.

D- Not recording a non-recurring item related to de-recognition of the investment in an associate company, the Egyptian United Sugar Company, amounting to 139 million riyals, of which 97 million riyals was recorded in the food manufacturing sector during the year 2024 AD. In addition, the net loss resulting from the put option obligation related to the associate company amounted to 86 million riyals during the year 2024 AD, of which 59 million riyals were recorded within the food manufacturing sector, and this loss was included in financing costs.

E- Not recording impairment losses in the value of some non-current assets worth 307 million riyals that were recorded during the year 2024 AD.

F- Decrease in non-recurring profit related to the recovery of customs duties from a regulatory body in The Kingdom of Saudi Arabia, where the net impact reached 9 million riyals during the year 2025, compared to 19 million riyals during the year 2024. In 2024 AD, to a net profit of 46 million riyals in 2025 AD, mainly due to not recording a net impairment loss of 76 million riyals for some non-current assets that were recorded in 2024 AD

3) Food services sector

The operational performance of the food services sector improved, as the net loss decreased from 117 million riyals to 77 million riyals, despite recording a net impairment loss in value. In the amount of 35 million riyals during the year 2025. It is required for a value of (53 million riyals), but a net loss was recorded resulting from the derecognition of some non-current assets worth (8 million riyals), which were affected by a public sector development project.

7) Financing income

The increase in financing income is mainly a result of a non-recurring gain resulting from the settlement of the put option obligation, with the net effect amounting to 40 million riyals.

8) Financing costs

The decrease in financing costs is due to Head to:

A- Failure to record net financial charges related to debts settled in 2024, amounting to (334 million riyals)

B- Incurring an additional expense of 20 million riyals to repurchase and cancel all of the company’s sukuk, amounting to one billion riyals, in 2024AD,

C- Lack of impact of 109 million riyals resulting from the decline in the value of the Egyptian pound during the first quarter of the year. 2024AD, with an increase in gross profit margins during the first quarter of the same year.

D- Consolidation of the financial statements of the Egyptian United Sugar Company during the year 2025AD, which reduced this decline.

9) Various items

The impact of discontinued operations and deferred tax on intangible assets and some other non-recurring items, including the impact of non-controlling equity interests, led to recording a net loss of 5 million riyals during the year. 2025 AD, compared to a net loss of 22 million riyals in 2024 AD.

Adjusted net income

For illustrative purposes, and after excluding the impact of non-recurring items and exceptional items mentioned above, the group’s adjusted net profit amounted to 539 million riyals in 2025 AD compared to 296 million riyals in 2024 AD, in order to show the basic operating performance of the group more clearly.

Distribution Dividends

The Board of Directors of Savola Group recommended distributing cash dividends to shareholders for the fiscal year 2025.

The company said: The total amount distributed is 510 million riyals, while the number of shares entitled to dividends is 300 million shares.

It added that the share of the distribution is 1.7 riyals per share, while the distribution ratio to the nominal share value is 17%.

The entitlement to these cash dividends will be For shareholders who own shares on the vesting date and are registered in the company’s shareholder register at the deposit center at the end of the second trading day following the day of the company’s general assembly meeting (the vesting day), which will be announced later, while the distribution date will be announced later.

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