Savola Group Company "Resilience despite regional headwinds, reiterate Buy"

Research evidence excerpt

Savola Group Company "Resilience despite regional headwinds, reiterate Buy"

Powered by Lab Global15 MayResearch2026ab Evidence UBS YES

Savola Group Company Equities

Saudi ArabiaResilience despite regional headwinds, reiterate

Buy Food Products

12-month rating Buy

12m price target SR35.00Reiterate Buy on Savola after 1Q26 results

We take a positive view on the following trends: 1) The food processing segment

continued to perform strongly, with volume-driven growth across the edible oils, sugar Price (14 May 2026) SR26.50

with margin recovery in sugar and lower input costs in pasta, despite negative pricing RIC: 2050.SE BBG: SAVOLA AB

across the portfolio during 1Q26. 2) Sugar profitability improved despite lower realised

prices, supported by a higher white sugar premium and improved channel mix in KSA Trading data and key metrics

and Egypt, with management expecting further margin recovery over the coming 52-wk range SR28.40-20.85

quarters. 3) Panda revenue was flat y/y amid intense competition, with management Market cap. SR7.92b/US$2.11b

prioritising margin protection and earnings quality over promotional intensity, which we Shares o/s 299m (ORD)

consider prudent. We highlight accelerating e-commerce penetration at 4.0% of retail Free float 66%

sales vs 1.4% in 1Q25 . 4) Portfolio optimisation is largely complete, allowing Avg. daily volume ('000) 943

management to focus on scaling core food platforms. Avg. daily value (m) SR24.2

Common s/h equity (12/26E) SR5.83b

UBS Evidence Lab data on KSA retail landscape shows increased competition P/BV (12/26E) 1.3x

We track the competitive intensity in the Saudi Arabia retail landscape using UBS Net debt to EBITDA (12/26E) 1.9x

Evidence Lab's Saudi food retail location market quality monitor (> Access Dataset) . The