2021 3rd Quarter Results

SAVOLA GROUP COMPANY

(A Saudi Joint Stock Company)

CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS - (UNAUDITED)

For the three-month and nine-month periods ended September 30, 2021

together with the Independent Auditor's Review Report

SAVOLA GROUP COMPANY

(A Saudi Joint Stock Company)

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS - (UNAUDITED) For the three-monthand nine-monthperiods ended September 30, 2021

INDEX	Page
Independent auditor's report on review of the condensed consolidated interim financial		-
statements
Condensed Consolidated Statement of Financial Position		1
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income	2 - 3
Condensed Consolidated Statement of Changes in Equity	4	- 5
Condensed Consolidated Statement of Cash Flows	6	- 7
Notes to the Condensed Consolidated Interim Financial Statements	8 - 31

KPMG Professional Services	ةينهملا تاراشتسلال يج مإ يب يك
Zahran Business Center	لامعلأل نارهزلا زكرم
Prince Sultan Street	ناطلس ريملأا عراش
P.O. Box 55078	55078 ب.ص
Jeddah 21534
21534 هدـج
Kingdom of Saudi Arabia
ةيدوعسلا ةيبرعلا ةكلمملا
Headquarter in Riyadh
ضايرلا يسيئرلا زكرملا

Commercial Registration No 4030290792	4030290792 مقر يراجت لجس

Independent auditor's report on review of condensed

consolidated interim financial statements

To the Shareholders of Savola Group Company

Introduction

We have reviewed the accompanying September 30, 2021 condensed consolidated interim financial statements of Savola Group Company ("the Company") and its subsidiaries ("the Group") which comprises:

the condensed consolidated statement of financial position as at September 30, 2021;
the condensed consolidated statement of profit or loss and other comprehensive income for the three- month and nine-month periods ended September 30, 2021;
the condensed consolidated statement of changes in equity for the nine-month period ended September 30, 2021;
the condensed consolidated statement of cash flows for the nine-month period ended September 30, 2021; and
the notes to the condensed consolidated interim financial statements.

Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with IAS 34, 'Interim Financial Reporting' that is endorsed in the Kingdom of Saudi Arabia. Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' that is endorsed in the Kingdom of Saudi Arabia. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying September 30, 2021 condensed consolidated interim financial statements of Savola Group Company and its subsidiaries are not prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting' that is endorsed in the Kingdom of Saudi Arabia.

For KPMG Professional Services

____________________

Nasser Ahmed Al Shutairy License No. 454

Jeddah, 27 October 2021

Corresponding to 21 Rabi Al Awal, 1443H

KPMG Professional Services a professional closed joint stock company registered in the Kingdom of Saudi Arabia with the paid-up capital of SAR 15,000,000. Previously known as KPMG Al Fozan & Partners Certified Public Accountants. A member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited.

نازوفلا يج مإ يب يك ةكرش" قباسلا مسلاا نم ةكرشلا مسا رييغت مت دقو،لماكلاب عوفدم يدوعس ريال )15000000( اهلامسأر ةيدوعسلا ةيبرعلا ةكلمملا يف ةلجسم ةلفقم ةمهاسم ةينهم ةكرش ،ةينهملا تاراشتسلال يج مإ يب يك

ايناطيرب يف ةلجسم ةكرش ،ةيملاعلا يج مإ يب يك ـل ةعباتلاو ةلقتسملا يج مإ يب يك تاكرش ةكبش يف كيرش ريغ وضع ةكرش يهو .م2021/03/21 خيراتب يلاحلا مسلاا ىلإ "نوينوناق نوعجارمو نوبساحم هاكرشو

Commercial Registration of the headquarter in Riyadh is 1010425494.

SAVOLA GROUP COMPANY (A Saudi Joint Stock Company)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Expressed in thousands of Saudi Riyal unless otherwise stated)

		September 30,		December 31,
		2021	2020
	Note	(Unaudited)		(Audited)
ASSETS
Property, plant and equipment		6,057,855	6,250,713
Right-of-use assets		3,590,802	3,912,128
Intangible assets and goodwill		1,001,390	900,735
Investment property		53,424	57,018
Equity-accounted investees	5	9,100,118	9,054,136
Investments at fair value through other comprehensive income	6	595,290	387,196
Long term deposits		7,563	7,547
Derivative		1,046	2,311
Deferred tax asset		21,409		29,800
Non-current assets		20,428,897		20,601,584
Inventories		3,328,599	3,067,033
Trade receivables		1,480,242	1,182,226
Prepayments and other receivables		1,381,441	1,111,371
Investments at fair value through profit or loss	6	27,132	2,792
Cash and bank balances	4	1,355,859		1,093,378
Current assets		7,573,273	6,456,800

TOTAL ASSETS		28,002,170	27,058,384
EQUITY
Share capital	7	5,339,807	5,339,807
Shares held under employees' share based payment plan	8	(30,433)	(16,509)
Share premium		342,974	342,974
Statutory reserve	9	1,774,085	1,774,085
General reserve		4,000	4,000
Other reserves		48,453	(94,585)
Effect of transactions with non-controlling interests without
change in control		(187,979)	(187,979)
Foreign currency translation reserve		(1,977,374)	(1,966,648)
Retained earnings		3,112,811	3,036,997
Equity attributable to owners of the Company		8,426,344		8,232,142
Non-controlling interests		1,003,071		932,412
TOTAL EQUITY		9,429,415	9,164,554
LIABILITIES
Loans and borrowings	10	4,621,383	4,464,301
Lease liabilities		3,522,083	3,723,132
Employee benefits		831,120	803,870
Long-term payables		246,421	248,592
Derivative		197,442	190,562
Provision against asset restoration		148,190	146,466
Deferred tax liability		139,432		133,051
Non-current liabilities		9,706,071		9,709,974
Loans and borrowings	10	2,924,071	2,436,015
Lease liabilities		569,337	642,881
Trade payables		2,738,189	2,474,998
Accrued and other liabilities		2,635,087		2,629,962
Current liabilities		8,866,684		8,183,856
TOTAL LIABILITIES		18,572,755		17,893,830
TOTAL EQUITY AND LIABILITIES		28,002,170		27,058,384

The accompanying notes 1 to 21 form an integral part of these condensed consolidated interim financial statements.

SAVOLA GROUP COMPANY (A Saudi Joint Stock Company)

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

(Expressed in thousands of Saudi Riyal unless otherwise stated)

	Note	Three-month period		Nine-month period
	ended September 30		ended September 30
		2021	2020	2021	2020
Revenues	15	6,048,464	4,587,276	17,913,898	16,517,236
Cost of revenues	15	(5,024,809)		(3,522,843)		(14,562,979)		(12,951,123)
Gross profit		1,023,655	1,064,433	3,350,919	3,566,113
Share of results in investment in
equity-accounted investees, net of
zakat and tax		149,006	224,694	449,258	580,773
Administrative expenses		(189,639)	(187,075)	(642,975)	(610,368)
Selling and distribution expenses		(681,259)		(662,795)		(2,068,418)		(2,104,192)
Results from operating activities		301,763	439,257	1,088,784	1,432,326
Finance income		11,260	6,504	39,717	34,334
Finance cost		(112,686)		(123,995)		(426,601)		(449,854)
Net finance cost		(101,426)	(117,491)	(386,884)	(415,520)
Reversal of provision no longer
required		--	21,003	--	21,003
Zakat and income tax expense	11	(29,978)	(18,861)		(89,761)		(82,248)

Net profit for the period		170,359	323,908	612,139	955,561
Other Comprehensive Income
Items that will not be reclassified to
profit or loss
Re-measurements of defined benefit
liability		--	--	--	(53,068)
Investments at fair value through
other comprehensive income - net
change in fair value		(77,946)	109,842	170,584	75,472
Items that are or may be
reclassified to profit or loss
Foreign operations - foreign
currency translation differences		(44,211)	39,406	(11,839)	(185,600)
Investment in equity accounted
investees - share of other
comprehensive income		(10,130)	25,458	(45,304)	13,920
Cash flow hedges - effective portion		6,996	9,320	20,204	4,314
of changes in fair value
Other comprehensive income /
(loss)		(125,291)		184,026		133,645		(144,962)
Total comprehensive income		45,068		507,934		745,784		810,599
for the period

The accompanying notes 1 to 21 form an integral part of these condensed

consolidated interim financial statements.

Attachments

Disclaimer

SAVOLA Group Company SJSC published this content on 27 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2021 09:28:08 UTC.

SAVOLA GROUP COMPANY

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