Listed on Tadawul Stock Exchange K.S.A, Savola is the leading strategic investment holding group in the food and retail sectors across the MENAT (Middle East, North Africa and Turkey) region. Through Savola Foods and Savola Retail, it operates almost 498 grocery stores and produce everyday household staples loved by consumers in 30 countries. It’s profits also come from stakes in other companies in it’s core sectors and other industries.
Savola was founded in 1979 and the past four decades has done from strength to strength. Through Savola Foods, it’s edible oil, sugar, pasta and ghee brands now market products to consumers in 37 countries, with manufacturing facilities spread across 7 countries. Savola Retail manages 498 Panda grocery stores and had a 12.4% market share in the Kingdom of Saudi Arabia in 2015 alone. Alongside this activity, it’s experts carefully invest funds in other companies to generate additional profit and increase shareholder wealth.
(I.) Each student is required to analyse the financial statements of Savola Group Companyprovided, and use the results of their analysis to conduct an appraisal of this company. Your analysis and conclusions should be submitted in a written report of @1200 words.
(II.) Students will be assigned to a group and each group will present the results and conclusions of their appraisal of Savola in a presentation to class, using powerpoint slides. Presentations should be @5 – 10 minutes max. Group presentations will be held on 18 April 2017 by Vasumathy Subrah Moniam.
Marks:This assignment is worth 25% of marks for AC554P; of which, 19% will be for the Individual Reportand 6% for the Group Presentation.
Deadline: The Financial Reports must be submitted by 5.00pm (GMT) Wednesday 5 April 2017, powerpoint presentations must be submitted by 5.00pm Wednesday 12 April 2017. Both to be submitted via loop.
Your analysis should;
1. Apply the tools and metrics for financial appraisal that have been discussed in class and in presented in the module materials, to the extent that is possible.
2. Include reference to corporate profitability, liquidity, operational efficiency (to the extent possible), corporate structure and financial gearing, and investment.
3. Present a critical appraisal of the value proposition offered by Savola in a corporate context.
4. It should provide some comparison with a competitor company.
5. Your analysis could refer to any deficiencies in the publicly available dataencountered in the execution of this task.