Savola Group, one of Saudi Arabia’s leading retail and food holding companies, has issued its fourth quarter and full year 2016 financial results.
Sulaiman A.K. Al-Muhaidib, chairman of Savola Group, said: “2016 was a year of important changes across the group.”
He added: “Importantly, our management team has proactively taken decisive action to address underperformance in our retail division through a carefully thought-through transformation program.”
He said: “In the food segment, while we had to take losses due to the currency devaluation in Egypt and other charges, the underlying fundamentals remain strong.”
The chairman said: “Looking ahead, our focus continues to be improving customer experience in our retail business and enhancing our productivity. As the macro-economic situation slowly improves, we are well-positioned to capitalize on growth opportunities.”
The group reported revenues of SR25 billion in 2016 as compared to SR25.1 billion in 2015.
The lack of growth in revenue was mainly due to the underperformance of the retail segment, exacerbated by the macro environment in Saudi Arabia, a company press release said.
The overall net loss for 2016 was SR451 million, compared to net profit of SR1.792 billion for 2015.
The company reported a number of exceptional one-off items that negatively impacted profitability.
Excluding these charges and the exceptionally high currency losses incurred last year, adjusted net profit for 2016 was SR810 million compared to adjusted net profit of SR1.480 billion in 2015.
Earnings per share were negative at SR0.85 and cash and cash equivalents stood at SR1.3 billion at the end of the year, according to the release.
In the fourth quarter of 2016, Savola reported revenues and a net loss of SR6.2 billion and SR964 million respectively. It recorded revenues of SR6.3 billion and a net profit of SR515 million in the fourth quarter of 2015.
Last year’s revenue was SR13.5 billion, in line with the same period last year. New store openings, coupled with a decline in Like for Like (LfL) sales, contributed to the revenues.
The decline in gross margins is partly due to the costs associated with inventory reduction.
The net loss was SR773 million compared to a profit of SR146 million in 2015. The normalized loss was SR396 million, the release added.
The average retail selling space increased by 1 percent in 2016 as 18 new stores were added across Saudi Arabia.
The strategy for Panda Retail Company over the last several years was to expand aggressively across Saudi Arabia.
The business has built up an extraordinary infrastructure, manifested by its leading store count and unique distribution capability in Saudi Arabia.
A portion of the operating losses in 2016, around SR106 million excluding closure costs, was associated with the convenience format, Pandati.
The format is being reconfigured through store closures and layout changes, the release added.
Savola Group to capitalize on growth opportunities
Savola Group to capitalize on growth opportunities
LuLu Walkathon: 22,000 participants champion greener future
Alkhobar’s New Corniche transformed into a vibrant hub of energy and community spirit when more than 22,000 people gathered for the highly anticipated “LuLu Walkathon.” Organized by LuLu Saudi Hypermarket, the 3-km event was held under the patronage of the Ministry of Sport and Alkhobar municipality on Jan. 31. The walkathon successfully united the community under the themes of health and environmental sustainability.
The event was held with the cooperation of Meshaal Al-Harbi, head of Alkhobar municipality, and Tareq Al-Qahtani, director of the Ministry of Sport’s Eastern Province branch. The official flag-off was performed by Mohammed Haris, director of LuLu Hypermarket Saudi Arabia.
This year’s walkathon went beyond fitness, offering a rich tapestry of entertainment including soulful traditional Arabic music, a contemporary violin performance, and a playful “donuts dance,” which ensured a festive atmosphere for families of all ages.
A major highlight of the morning was the presence of Khadra. Khadra served as a living reminder of the Kingdom’s deep-rooted cultural artistry, posing for photos with the thousands of participants who lined the coast. To ensure every attendee felt the spirit of the celebration, participants were geared up with a premium merchandise kit containing custom-branded T-shirts and caps. Furthermore, every individual who successfully completed the 3-km route was rewarded with an exclusive LuLu goodie bag at the finish line to celebrate their achievement.
Sustainability remained a core pillar for the LuLu Walkathon this year, reflecting the brand’s long-term environmental vision. LuLu’s staff managed the route with a strict focus on environmental responsibility, while strategically placed refreshment stalls kept walkers hydrated without compromising the pristine condition of the corniche.
The massive success of the event was supported by key partners, including MasterCard as the commercial sponsor and Nada, which provided vital refreshments, alongside significant support from Radio Mirchi and Alyaum newspaper.
“The walkathon concluded not just as a race, but as a meaningful tribute to the Kingdom’s past and a definitive step toward a sustainable future,” a statement said. “By blending physical activity with cultural celebration and environmental stewardship, LuLu Hypermarket reaffirmed its commitment to the Saudi community, promoting an active, engaged, and responsible lifestyle for all residents.”
