THE SAVOLA GROUP PRODUCES POWERHOUSE PERFORMANCE IN 2011 AS FINANCIAL RESULTS HIT SR ONE BILLION MARK

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 18, 2012 --

The Savola Group, one of the region’s leading food companies specialized in edible oils, sugar, pasta, hypermarkets, retail, and plastics, has announced its financial results for the twelve months ending 31st December 2011, with Managing Director Dr. Abdulraouf Mannaa declaring that the Group has recorded its highest ever net income before capital gains with exceptional results for both the 4th quarter and the year end. . Net income of the Group for the year 2011 (before capital gain and exceptional items) reached SR 1.07 billion, which is 7% higher than the forecast of SR 1 billion despite challenges in the overseas markets and substantial increase in raw material prices.

“2011 was the best ever financial year for The Savola Group having hit the SR 1 billion mark in profits without capital gains, which is a powerhouse performance of outstanding merit,” said Dr. Mannaa.

For the fourth quarter ended 31 December 2011 Savola achieved net income of SR 498.6 million, an increase of 24,830% compared to the SR 2 million for same quarter last year and an increase of 61.9% compared to the SR 307.9 million for third quarter 2011. Dr. Mannaa highlighted that the 4th quarter 2011 net income of SR 370 million (before capital gain and exceptional items) is 25% higher than the announced forecast of SR 296 million


Gross profit for the fourth quarter ended 31 December 2011 amounted to SR 1.16 billion, an increase of 17.1% compared to SR 994.7 million for the same quarter last year while the operating profit for the fourth quarter ended 31 December 2011 amounted to SR 587.5 million, increase of 32.7% compared to SR 442.8 million for the same quarter last year.

Net income for the twelve months ended 31 December 2011 amounted to SR 1.2 billion, an increase of 35.6% compared to last year’s SR 886.7 million. Earnings per share for the twelve months ended 31 December 2011 were SR 2.40 as compared to SR 1.77 for last year.

Gross profit for the twelve months ended 31 December 2011 amounted to SR 3.97 billion, an increase of 16.1% compared to last year‘s SR 3.42 billion and the operating profit for twelve months ended 31 December 2011 amounted to SR 1.8 billion, representing a 20% increase compared to last year’s SR1.5 billion.

Dr. Abdulraouf Mannaa, Group Managing Director attributed the increase in the Group’s net income for 4th quarter 2011 and for the year ended December 31, 2011, as compared to the same periods last year, mainly due to the turnaround in profitability of overseas operations in the Foods Sector, continued sales growth and increase market share in Retail Sector, capital gain of SR 153M resulting from sale of lands during 4th Q 2011, impairment provisions taken during q4 for 2010 and Herfy IPO capital gain in Q1 2010. Revenues for the 4th quarter 2011 reached SR 6.6 billion, an increase of 15.8%, which brought the total revenues for the twelve months ending 31 December 2011 to show an increase of 20.5% compared with SR 25.3 billion for the same period last year.

Dr. Mannaa highlighted that the 4th quarter 2011 net income of SR 370 million (before capital gain and exceptional items) is 25% higher than the announced forecast of SR 296 million. Also, the net income of the Group for the year 2011 (before capital gain and exceptional items) reached SR 1.07 billion, which is 7% higher than the forecast of SR 1 billion despite challenges in the overseas markets and substantial increase in raw material prices.



Savola Distributes Additional Profits to Reach SR 650 Million:

Dr. Mannaa went on to announce that In continuation of its declared policy to distribute quarterly and regular dividends to its shareholders, and due to the outstanding net income achieved during the 4th quarter of 2011, which amounted to SR 498.6 million, The Savola Group’s Board of Directors has approved the distribution of SR 275 million, (i.e. SR 0.55 per share) as dividends for the 4th quarter of 2011 to the shareholders registered in the company books by the end of the trading date of the Annual General Shareholders Meeting (AGM), which will be announced later after securing the necessary approval of the concerned authorities.

It should be noted that The Savola Group has previously distributed SR 375 million dividends for the last three quarters (i.e. SR 0.25 per quarter per share) for the last three quarters of 2011, as cash dividends, and this fresh distribution will bring the total dividends paid to shareholders for the full year 2011 to SR 650 million (i.e. SR 1.30) per share.

Savola Forecasts SR 1.2 in Net Income (before capital gain):

In line with the Group’s policy of enhancing its disclosures and transparency with its shareholders and investors, the Group also announced that the 2012 full year forecast is expected to reach SR 1.2 billion net income (before capital gain) and for the 1st quarter of 2012 net income (before capital gain) is expected to reach SR 220 million.