On 2026-08-06 08:12:11 (Saudi Time), Savola Group announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ended June 30, 2026, Savola Group's revenues rose 3.88% YoY to SAR 13,587.59 million (vs. SAR 13,080.04 million), driven primarily by the Food Processing segment's higher volumes and elevated edible oil commodity prices, a 1% increase in Retail revenues supported by new store openings and e-commerce growth, partially offset by lower revenues in the Food Services segment. Net profit attributable to shareholders surged 36.017% YoY to SAR 401.06 million (vs. SAR 294.86 million), largely driven by the Food Processing segment's profit nearly doubling to SAR 313 million from SAR 167 million due to higher revenues and operational efficiencies, a non-recurring gain of SAR 43 million from the disposal of Sudan operations, and improved performance in the Frozen Foods and Food Services segments. These gains were partially offset by a decline in Retail segment profit to SAR 33 million from SAR 49 million (including a SAR 13 million non-recurring write-off of intangibles), the absence of a SAR 53 million non-recurring accrual reversal recognized in the prior period, and higher zakat and income tax expenses.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 13.668% to SAR 6,295.44 million (from SAR 7,292.16 million in Q1 2026), primarily driven by seasonal consumption patterns across the Food Processing, Retail, and Frozen Foods segments. Net profit attributable to shareholders fell sharply by 59.039% to SAR 116.54 million (from SAR 284.52 million in the prior quarter), mainly due to the lower seasonal revenues, the absence of a non-recurring gain of SAR 43 million (Savola share: SAR 41 million) related to the disposal of Sudan operations recorded in Q1 2026, and a non-recurring loss of SAR 13 million from the write-off of certain intangibles in the Retail segment in Q2 2026. Partially offsetting these headwinds were improved net profit in the Food Services segment driven by seasonal consumption patterns and a higher share of results from associate.

Other Items

Savola Group's external auditor issued an unmodified conclusion with no additional comments, qualifications, or adverse opinions noted. The report disclosed no material risk warnings regarding going concern or debt default. Subsequent to June 30, 2026, the Group acquired a 100% equity interest in Al Mehbaj Al Shamiya for Trading LLC, a food processing company and related party, for a total consideration of SAR 11.4 million, comprising SAR 5.4 million paid following completion of post-completion adjustments and regulatory approvals, and deferred consideration of SAR 6.0 million payable on the first anniversary of the completion date; this transaction remains subject to shareholder ratification at the next General Assembly. The Group also noted ongoing monitoring of regional geopolitical developments, stating that while the situation remains evolving, these developments have not had a material impact on the Group's financial statements for the period ended June 30, 2026, and that the potential impact will continue to be assessed on future reporting dates. Certain comparative amounts have been reclassified to conform to the current period's presentation, pertaining to the impact of discontinued operations, with no material effect on the interim condensed consolidated financial statements.

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