SAVOLA GROUP COMPANY Savola Group
Earnings Presentation | Q4 2021 | www.savola.com |
DISCLAIMER
This presentation might contain forward-looking statements which may be identified by the use of words like "plans,"
"expects," "will," "anticipates," "believes," "intends," "projects," "estimates" or other words of similar meaning. All
statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, market position, expenditures, and financial results, are forward looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events. The Savola Group (Savola or Group), its subsidiaries and its affiliates (the "Companies") referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements of the Companies, could thus differ materially from those projected in any such forward-looking statements. The Companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise.
Information contained in this presentation is subject to change without further notice, its accuracy is not guaranteed, and it may not contain all material information concerning The Savola Group and its affiliates. We do not make any representation regarding, and assume no responsibility or liability for the accuracy or completeness of, or any errors or omissions in, to any information contained herein.
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KEY MANAGEMENT HIGHLIGHTS FOR 2021
Business Highlights | • The group delivered strong performance across most segments despite the increase in global |
food commodity prices and challenging grocery retail landscape in Saudi Arabia | |
Financial
Performance
Strategic Initiatives
Dividends
- Savola Group reported 13.6% topline growth during 2021; driven by the improvement in our foods business
- Net Income reached to SAR 222mn in 2021 compared to SAR 911mn last year due to decline in the retail business profitability and one-off asset impairment provisions
- Acquired 100% stake in Bayara (a leading regional player in nuts, spices and pulses) to accelerate Savola's strategy to enter value-addedfood categories associated with health, convenience and youth driven trends
- Successful activation of our Corporate Venture Capital Program by investing in food, retail and consumer space disruptors in US, UAE and Egypt
- Savola Group Board has recommended a dividend distribution of SAR 106.8 mn to the shareholders for the period ending 31 Dec 2021; this translates into a payout ratio of 48% and DPS of SAR 0.2/share
3
KSA - MACROECONOMIC HIGHLIGHTS
Combined POS and Cash Withdrawals, SAR bn | Saudi Unemployment Rate |
120 | Low base last year due | 70% | ||||||||||||||||||||||||||||
to lockdown | ||||||||||||||||||||||||||||||
100 | 50% | |||||||||||||||||||||||||||||
80 | 30% | |||||||||||||||||||||||||||||
60 | ||||||||||||||||||||||||||||||
40 | 10% | |||||||||||||||||||||||||||||
20 | -10% | |||||||||||||||||||||||||||||
0 | -30% | |||||||||||||||||||||||||||||
Jan Feb Mar Apr May | Jun Jul | Aug Sep Oct Nov | ||||||||||||||||||||||||||||
2020 | 2021 | YoY Growth | ||||||||||||||||||||||||||||
Average Inflation Rate, %
15% VAT
Implementation | |||
15.0% | |||
10.0% | |||
5.0% | |||
0.0% | |||
Jan-20Apr-20Jul-20Oct-20 | Jan-21Apr-21Jul-21 | Oct-21 | Jan-22 |
General | F&B |
COVID-19 | ||||||||||
Global Pandemic | ||||||||||
15.4% | 14.9% | |||||||||
12.5% 12.3% | 12.0% 12.0% 11.8% | 12.6% | 11.7% 11.3% 11.3% | |||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
'19 | '19 | '19 | '19 | '20 | '20 | '20 | '20 | '21 | '21 | '21 |
Expat Population Proxy, millions
Non Saudi insured persons
-0.5
(-7.0%)
8.0 8.1 7.8 7.7 7.4 7.0 6.8 6.6 6.4 6.3 6.1
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
'19 | '19 | '19 | '19 | '20 | '20 | '20 | '20 | '21 | '21 | '21 |
Source: General Authority of Statistics, Saudi Council of Cooperative Health Insurance (CCHI), The Saudi Central Bank (SAMA)
4
SELECTED MENA AND COMMODITIES OVERVIEW
Real GDP, % change | Selected Currency Highlights (rebased) |
EgyptTurkey
Central Asia | TL | IRR | EGP |
130.0 | |||
120.0 |
5.6% | ||
3.6% | 3.3% | |
2019 | 2020 | 2021E |
9.0% | ||
0.9% | 1.8% | |
2019 | 2020 | 2021E |
3.4% | 110.0 | |||
2.5% | 100.0 | |||
90.0 | ||||
80.0 | ||||
70.0 | ||||
60.0 | ||||
50.0 | ||||
-6.8% | Real GDP, % change | |||
40.0 | ||||
2019 | 2020 | 2021E | ||
Jan-21Mar-21May-21Jul-21 | Sep-21Nov-21Jan-22 | |||
Average Inflation Rate, % | FAO Vegetable Oils and Sugar Indices (rebased) |
Egypt | Turkey | Central Asia |
Vegetable Oil* | Sugar** |
250.0 |
13.9% | |
5.7% | 4.5% |
15.2% | 17.0% |
12.3% | |
39.3% | |
34.6% | 36.4% |
200.0 | ||||||
150.0 | ||||||
100.0 | ||||||
50.0 | ||||||
Jan-19 | Jul-19 | Jan-20 | Jul-20 | Jan-21 | Jul-21 | Jan-22 |
2019 2020 2021E 2019 2020 2021E
2019 | 2020 | 2021 |
Source: IMF World Economic Outlook Database October 2020, S&P Capital IQ, Food and | *Vegetable Oil Price Index consists of an average of 10 different oils weighted with average export trade shares of each oil product | 5 |
Agriculture Organization (FAO) | **Sugar Price Index is an index form of the International Sugar Agreement prices | |
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SAVOLA Group Company SJSC published this content on 06 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 February 2022 17:27:07 UTC.
