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

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

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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