Savola at a Glance

We are one of the leading strategic investment holding
Groups in the food and retail sectors across the MENAT Region.

Export Markets Major / Manufacturing Markets

Food Investments

Our food vertical includes investments in large branded categories across the MENAT region.

  • of Group revenue
  • stake in
    Al Marai
  • stake in
    Al Kabeer

Retail Investments

Panda Retail is the largest modern grocery chain in Saudi Arabia with 205 stores serving more than 106 million customers annually.

  • of Group revenue
  • Panda stores in 40+ cities
  • Herfy stores in 50+ cities

Strategic and Financial Highlights

A Year of Resilience and Recovery

Net Profits (SAR millions)

476
  • 2015
  • 2016
  • 2017
  • 2018
  • 2019

Revenues (SAR millions)

22,243
  • 2015
  • 2016
  • 2017
  • 2018
  • 2019

Gross Profits (SAR millions)

4,504
  • 2015
  • 2016
  • 2017
  • 2018
  • 2019

Total Assets (SAR millions)

26,658
  • 2015
  • 2016
  • 2017
  • 2018
  • 2019

Shareholder's Equity (SAR millions)

7,590
  • 2015
  • 2016
  • 2017
  • 2018
  • 2019

Capital Expenditure (SAR millions)

374
  • 2015
  • 2016
  • 2017
  • 2018
  • 2019

Chairman’s Statement

A Year of Optimism and Results

The Savola Group’s transition strategy demonstrated tangible results, with our key businesses showcasing stories of resilience, success and excellence.

Sulaiman A. Al Muhaidib

Group Board Chairman

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Mr. Sulaiman A. Al Muhaidib


Chairman of the Board; Non-Executive

Current positions: Chairman of the Board, Abdulkader Al Muhaidib & Sons Co., Board member of many companies that are Almarai Co., Rafal Real Estate Co, Amwal AlKhaleej Commercial Investment Co., Al Muhaidib Holding Co.

Previous positions: Chairman of the Board, Middle East Paper Co. (MEPCO), Chairman of the Board Al Oula for Real Estate Development Co., Thabat Construction Co.

Qualifications: Second Class, Faculty of Medicines, King Saud University, Saudi Arabia.

Experience: Business, industrial and banking management, as well as investment management and real estate development and contracting. He also sits on a number of other Boards and Committees.

Group CEO’s Message

A Year of Positive Change

The year 2019 was a positive transition year for Savola Group, where we built momentum toward a sustainable growth path while implementing initiatives to deliver key milestones.

Anees Ahmed Moumina

Group Chief Executive Officer

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Mr. Bader Abdullah Al Issa


Vice Chairman of the Board; Non-Executive

Current positions: CEO, Assila Investment and Chairman of Savola Foods Company as well as his Board memberships in several Savola Group Companies.

Previous positions: CFO, Assila Investment.; CEO, Amias Holding; Investment Portfolio Manager, HSBC Saudi Arabia Limited; Financial & Marketing Analyst, SABIC America; Financial Analyst, JP Morgan.

Qualifications: Master of Business Administration, Rice University, USA; Bachelor of Economics, University of Virginia, USA; Certified Financial Analyst (CFA).

Experience: Financial and administrative fields, portfolio management, studying and analyzing of listed companies. In addition, he also sits on a number of other Boards & Committees of listed and private companies.

Our Business
Model & Strategy

A Rebuilding Model that
aims for Sustainable Growth

As a strategic shareholder focused on the consumer, we aim to manage, build and buy into businesses that maximize our share of the consumer wallet.

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Our Corporate Values

Our values underpin everything we do, they are a blueprint for concrete actions we take as individuals, as a team and as a company, every day.

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Personal Values

Tawado:

Confident Humility; Having the confidence to perform our responsibilities while having the humility to minimize our ego.


It’qan:

Relentless pursuit of perfection; The ability, willingness desire and intention to do our best to ensure that work is completed to the best standards.



Azm:

Fierce Resolve; Apply what we learn to improve ourselves.

Iq’tida:

Apprenticeship; To seek out, interact with, and learn from those who are more knowledgeable than us.


Group Values

Ihsan Al-Dhan:

Trusting; Trusting others intentions without doubting it.

Qabool:

Acceptance; Endure the views of others by going beyond tolerance or acceptance.

Iq’bal:

Approaching; Improve what we do by using what we have learned from the interaction with others.

Mu’azarah:

Caring; Provide support to our colleagues to help enable their success.

Corporate Values

Amanah:

Honesty; Is the fulfillment of our responsibilities towards investors.

Taqwa:

Conscientiousness; Fulfillment of our responsibility toward external parties.

Birr:

Caring Justice; Fulfillments to our responsibility toward our colleagues and the employee of the company.

Mujahadah:

Personal control; Achieving the personal discipline necessary to fulfill our responsibilities.

A Strong History of Sustainable Growth

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Click on green dots to see our journey

1979

Savola is established, with a paid-up capital of SAR 40 million and 50 employees.

1980

LoremIpsum

1981

Savola’s edible oil refinery in Jeddah begins operations, the first in Saudi Arabia.

1982

Launch of Afia premium corn oil. By the late 1980s, Savola captures 70% of the Saudi edible oil market.

1983

LoremIpsum

1984

LoremIpsum

1985

LoremIpsum

1986

LoremIpsum

1987

LoremIpsum

1988

LoremIpsum

1989

LoremIpsum

1990

LoremIpsum

1991

Acquisition of a 40% shareholding in Almarai (diluted after IPO in 2005). Savola’s stake then increases to 36.5% in 2013 (then Savola sold 2% during 2017, the current stake in Almarai is 34.52%)

Savola acquires Saudi Carton Factory to establish Savola Packaging Systems (divested in 2015)

1992

Savola becomes a publicly listed company on the Saudi Stock Exchange

Savola Bahrain and Savola Egypt commence edible oil operations

Savola Snack Foods is established to acquire 100% of Tasali Company (divested in 2001)

1993

Joint venture with Tate & Lyle to establish United Sugar Company, Saudi Arabia’s first sugar refinery

Acquisition of 41% of Saudi Glass Company, increased to 60% the following year (divested in 2004)

1994

LoremIpsum

1995

Savola Packaging Systems acquires the Paper Cups and Container Company (divested in 2003)

Afia International Egypt is formed through the merger of Savola Egypt and SIME Derby Egypt

Savola acquires 50% of the merged operation. In 2009, Savola Foods’ stake increases to 99%

Savola Foods establishes an edible oil factory in Egypt

1996

LoremIpsum

1997

LoremIpsum

1998

Savola enters the retail sector following its merger with Azizia Panda

Savola gains a 70% stake in Herfy through the Panda merger. Herfy was listed on the Saudi Stock Exchange, with Savola retaining a 49% stake (2010)

Through the Panda merger, Savola inherits stakes in Al-Mawashi (divested in 2000), Deemah (divested in 2001) and Al-Azizia Commercial Investment Company (divested 2009)

1999

LoremIpsum

2000

LoremIpsum

2001

LoremIpsum

2002

LoremIpsum

2003

Savola Foods establishes edible oil businesses in Morocco and Sudan.

2004

Panda launches the Hyper Panda format and expands abroad with the opening of a Hyper Panda store in Dubai (divested in 2017)

Savola achieves its “Triple 5” strategic goal 12 months ahead of target: SAR 5bn sales, SAR 500m profit within 5 years

New corporate governance standards are adopted, not only for legal compliance but as an ethical commitment aligned to Savola’s corporate values

Savola Foods enters Central Asia market by acquiring 49% of an edible oil business. Savola’s stake is increased to 80% in 2004 and 90% in 2014

Savola Foods acquires 90% of an edible oil business in Kazakhstan (divested in 2014)

2005

Savola establishes Kinan Real Estate, subsequently divesting 70% through private placement

Al Batool Franchising is formed to focus on emergent retail concepts: Mugg & Bean, Bonia, Carlo Rino, Jacqueline, Tom Tailor, Yves Rocher (divested in 2011)

2006

Savola invests in King Abdullah Economic City (KAEC) and Knowledge Economic City as a founding shareholder

Savola Packaging Systems acquires New Marina Plastics in Egypt and Alsharq Plastics Industries in Saudi Arabia (divested in 2015)

2007

Savola Foods acquires Yudum, an edible oil business in Turkey

2008

Savola Foods’ cane sugar refinery in Egypt begins commercial operation and establishes an edible oil refinery in Algeria

Panda acquires Géant Stores and opens its first central distribution center in Riyadh

2009

Panda acquires United Company for Central Markets in Lebanon (divested in 2013). Panda acquires Géant Stores operations and expands its network to 152 locations

2010

Savola Group launches its first CSR program ‘Makeen’ to train and to empower people with disability

2011

Standard & Poor’s, the Hawkamah Institute and the International Finance Corporation rank Savola 2nd for governance and transparency

Savola Foods enters the pasta market by acquiring El Maleka Company and El Farasha Company in Egypt

2012

Savola Foods establishes Tolue Pakshe Aftab, a distribution company for its products in Central Asia

2013

Savola’s first Sukuk issuance (SAR 1.5 billion)

Savola acquires Al-Muhaidib’s shares in Panda (18.6%) and Savola Foods (10%) in exchange for the issue of 33.9 million new Savola shares through a capital increase to SAR 5.34 billion

Panda launches the Pandati convenience store concept (closed in 2018)

2014

Alexandria Sugar Company begins production of sugar from beet and establishes an agro-cultivation company

2015

Acquisition of 90% of Notrika, manufacturing Pech Pech confectionery products in Central Asia

Joint venture with global seafood leader, Thai Union, to launch the famous John West brand in 12 markets across MENAT region

Savola Foods launches Afia Distribution Company in Saudi Arabia

Panda opens its second central distribution center in KAEC

2016

Savola unveils a new brand identity, symbolizing its evolution toward becoming a strategic investment holding company

Savola receives the Sa’afa Award from the Integrity and Transparency Foundation

2017

Savola Group sells a 2% stake in Almarai, as a part of its capital re-allocation, whilst remaining the largest shareholder with a 34.52% stake

Savola ranks top 10 for Transparency in corporate governance, environment and social practices in MENA (S&P and Dow Jones indices and Hawkamah Institute, Dubai)

Savola Group launches its second CSR program ‘Negaderha’

Commissions a new factory in Jeddah to manufacture specialty fats for the B2B market

Establishes a joint venture in Iraq with Aves to create Bonus Food Company LLC, which is engaged in the refining and packaging of edible oils and vegetable ghee

In line with the strategy to refocus on core markets, Panda Retail sells its UAE hypermarket for a total amount of AED 80 million

2019

Savola issued Sukuks for the 2nd time pursuant to a new program in an aggregate amount of SAR 1 billion

Savola celebrated 40 years of operations through various internal and external activities

Savola was announced among the 31 companies added to MSCI (Morgan Stanley Capital International), as part of Saudi Stock Exchange (Tadawul) inclusion into the MSCI Emerging Market Index

Standard & Poor’s, the Hawkamah Institute and the International Finance Corporation ranked Savola 4th in governance and transparency

Investing in and Growing Market Leading Brands

Savola Group builds world-class brands in food and retail. The Group’s brands are market leaders
which enjoy strong brand equity and consumer wallet share.

Food Investments

Food security and trust

Revenue Breakdown (SAR millions)

0
Edible Oil & Fats
0
Sugar
0
Pasta
0
Frozen Foods
0
Almarai
0
Others

2019 Sales Volume by Business Line (%)

  • Edible Oil & Fats
  • Sugar
  • Pasta
  • Others

A Story of Resilience and Excellence

Savola Foods is a leading producer of high-quality products including edible oils, vegetable ghee, sugar, pasta, seafood and baked goods.

Strategic Overview

2019 was a dynamic year in Savola Foods’ journey, with a strategy to improve performance.

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MT* Total sales volume (millions)

1.6

Edible oil sales volume by country (including exports)

MT* Total sales volume (including exports) (millions)

2.2

Sugar sales volume by country (including exports)

Saudi Arabia

  • 2018
  • 2019

Egypt
Sugar Cane

  • 2018
  • 2019

Egypt
Best Sugar

  • 2018
  • 2019

MT* Total sales volume (including exports)

279,336

Pasta sales (including exports)

  • 2018
  • 2019
+0%
Edible Oils market
share in Arabia
+0%
Al Osra brand
market share
0%
Pasta revenue increase
in Egypt

Segment Overview

Edible oil is a leading business line for Savola Foods, and in 2019 continued its robust performance.

Almarai

Savola Group is the largest shareholder in Almarai Company, the Middle East’s leading food manufacturer and distributor, with a 34.52 percent stake in the company.

Revenues (SAR millions)

14,351

Net Profits (SAR millions)

1,812

0
Earnings per
share SAR
+0%
Savola Group
shareholding

Al Kabeer Group of Companies

Savola Group has a 51% stake in Al Kabeer Group of Companies, one of the region’s leading frozen food manufacturers and distributors.

+0
Manufactured
frozen products including poultry, beef, and seafood
0
Outlets Served through a fleet of +300
vehicles
0%
Savola Group shareholding

Retail Investments

Brands that consumers trust

The Savola Group has invested in retail brands that consumers trust. In 2019, the Group’s portfolio of brands performed strongly to reclaim sales while setting the stage for future growth.

Total number of Panda Stores

  • 2018
  • 2019

Total number of Herfy Restaurants

  • 2018
  • 2019

Panda selling area (m2)

  • 2018
  • 2019

A Turnaround Story

Panda Retail is the Middle East’s largest grocery retailer, with over 106+ million sales transactions through a chain of hypermarkets and supermarkets across the Kingdom.

Panda Revenues (SAR billion)

  • 2018
  • 2019

Panda gross margin (%)

  • 2018
  • 2019

Market share of total grocery retail (%)

  • 2018
  • 2019

Customer count 2019 (millions)

  • 2018
  • 2019

Marker share modern trade (%)

  • 2018
  • 2019

Herfy Food Service Group

With a 49% stake, Savola Group is the largest shareholder in Herfy Food Services Company. Herfy is one of Saudi Arabia’s most popular and recognised fast food restaurant brands.

Revenues (SAR millions)

1,288

Net profits (SAR millions)

196

0%
Savola Group
shareholding
0
Earnings
per Share SAR

Our People

Developing Exceptional People

The exceptional people working across all levels of the Group, and its subsidiaries, are crucial to Savola Group’s long-term success and ethos of sustainable growth.

0%
Participated in “Tawer Program” in the Group employee engagement survey
0%
“Tawer Program” engagement increase
0%
Female workforce increase in KSA

CSR & Sustainability

An Interconnected World

Savola Group recognises its role in an interconnected world where corporate actions impact commercial performance,
the well-being of the community, and the health of the environment.