A cornerstone of our transformation during 2024 was the successful %6 Billion rights issue to enable the strategic distribution of Almarai’s shares to our shareholders along with the capital reduction, reinforcing our commitment to optimizing shareholder value and focusing on businesses where we can directly drive and influence sustainable growth. This move aligned with our commitment to reinvest in high-value food segments, particularly in added-value categories that support our long-term strategy. In parallel, having initiated this process in 2023, we continued to restructure our food portfolio, executing exits from periphery markets, allowing us to channel resources and capital into core markets with stronger growth potential.

This strategic evolution positions Savola as a food company with a clear operational focus and vision. By strengthening our capital structure, reducing debt, and aligning equity with future growth objectives, we have created a solid financial foundation for continued investment in our operating companies and strategic initiatives. The Almarai transaction represents more than a financial milestone – it marks a key step in our journey toward becoming a leaner, more agile organization centered on food operations and long-term value creation.

Solid Performance Amid Market Challenges

Savola delivered a solid performance in 2024, posting year-on-year growth while outperforming the market and key competitors. Our retail business, Panda, continued to gain strength and momentum, focused on sustainable expansion and operational improvements. With 16 new store openings and continued investments in customer experience (CXR) programs, Panda reinforced its market presence while driving efficiency and growth. Panda’s strategic initiatives, including a partnership with a leading global e-grocery enablement provider, support its ambition to expand beyond its existing network, positioning it for long-term success. Our food business, SFC, continued its portfolio optimization strategy and scaling up its recent acquisitions into higher margin categories. It successfully navigated a complex operating environment, by effectively managing supply chain disruptions, demonstrating agility and strengthening its market share and leadership in core markets and key categories.

At Al Kabeer, a strengthened management team, provided strong leadership to drive growth and brand evolution ensuring that the business remains well-managed and positioned for stability and expansion.

Overall, Savola remained focused on building a more agile, efficient, and high-performing portfolio in 2024, executing a disciplined strategy to enhance resilience and unlock long-term value. By optimizing SFC, expanding Panda, and driving strategic growth in Al Kabeer, we reinforced our commitment to financial discipline, operational efficiency, and sustainable growth.

Nurturing a Thriving Workplace Culture

At Savola, our businesses share a commitment to high standards, ethics, and corporate goals, fostering collective success and a strong sense of belonging. We prioritize our people, cultivating a workplace built on trust, integrity, and responsibility. Through our People Pillars Program, we promote a supportive, healthy environment that values work-life balance and shared principles.

In 2024, Savola was certified as a ‘Great Place to Work’ for the fifth consecutive year, reaffirming our dedication to attracting, supporting, and retaining top talent across the Middle East.

Sustainability at the Core

As a leader in Saudi Arabia’s food and retail industry, Savola Group is committed to driving progress and shaping sustainability in alignment with the Kingdom’s national transformation program and Vision 2030.

Through our CSR & Sustainability foundation, Savola World, we strengthen our impact with dedicated committees focused on government relations, corporate social responsibility, and environmental stewardship while implementing high-impact CSR initiatives across the region.

Panda and Savola Foods Company prioritize sustainability through recycling, waste reduction, and energy efficiency, reducing landfill waste and adopting eco-friendly practices. Across MENAT, we actively integrate renewable energy, cut emissions, and minimize resource consumption. Through initiatives like the Negaderha Food Waste Program, we continue to set new benchmarks in sustainable food production and retail.

For the fourth year, we ranked among Tadawul’s top non-financial companies on the Alfaisal Corporate Governance Index, reflecting our commitment to transparency and ethics. In 2024, Forbes named us a ‘Sustainability Leader,’ and the Corporate Happiness Award GCC recognized our workplace excellence, reaffirming our dedication to responsible leadership, sustainability, and employee well-being.

Focus on Growth and Value Creation

As we enter 2025, Savola will build on its strong foundation with a leaner, more agile structure and a sharp focus on efficiency. Our priorities include driving operational improvements, expanding into high-value categories, and delivering on long-term strategic objectives.

With a refined capital structure, reduced debt, and optimized equity, we are well-positioned for growth and sustainable success. Our streamlined holding structure ensures strategic resource allocation, maximizing value across our portfolio and enabling us to navigate opportunities, adapt to market shifts, and create lasting impact.I extend my deepest gratitude to our Board of Directors for their guidance, our executive leadership team for their unwavering commitment, and all our employees for their dedication and perseverance. To our shareholders, we are grateful for your trust and belief in our vision. Together, we will continue driving resilience, innovation, and growth, shaping a brighter future for all our stakeholders.

God remains the source of our success and guidance.