NEW PERSPECTIVES CREATE ATTRACTIVE OPPORTUNITIES

FINANCIAL HIGHLIGHTS

DELIVERING
GROWTH

DEPENDENCY ON REVENUES FROM SAUDIA


0.5%

REVENUE (SR)

2.2bn

NET PROFIT (SR)

481.7m

NET PROFIT MARGIN

21%

EARNINGS PER SHARE (SR)

5.72

PROPOSED DIVIDEND PAYOUT

97.2%

OPERATIONAL HIGHLIGHTS

New technology and automation is creating major savings. Making systems and manuals available on tablets and SACC’s intranet portal has saved about SR1 million.

New in-flight catering contracts have been signed with Flynas, Malindo Air, Himalaya Airlines, and Turkey’s Freebird Airlines and Onur Air. The new Saudi airline Flyadeal appointed SACC as its in- flight services partner.

First international Saudia Al Fursan lounge opened in Cairo’s International Airport, in addition to an expanded Wellcome lounge in Medina. New lounge service agreements were concluded with Air France, Flynas, Philippine Airlines, Sri Lankan Air, and Royal Air Maroc.

Retail Division has expanded to manage in-flight shopping for three more airlines, as well as opening 13 new shops. New brands include Retail Trax and Lounge Café in the railways segment, and the first Le Cadeau shop at King Abdulaziz University.

Duty-free is being opened up through the Company’s joint-venture with Lagardere, the French multinational conglomerate.

Catering & Facilities Division improved client retention to 97 percent and won several new contracts to serve remote sites. New growth areas include healthcare, winning contracts with a pharmaceutical manufacturer and nine Kingdom- wide hemodialysis clinics.

Lost baggage - the contact to manage Saudia's lost baggage service and warehousing marks another area of diversification.

SACC became number one in the pre-prepared meals concept in catering for Hajj and Umrah pilgrims.

Quality control – of more than 10,000 food samples tested, the minimum rating was 98 percent. Water samples all scored 100 percent.

LOUNGE GUESTS

2,684,000
 19%
  2015 2016 2017
Riyadh 947,000 1,142,000 1,144,000
JEDDAH 797,000 876,000 1,156,000
DAMMAM 208,000 231,000 257,000
MEDINA 2,000 9,000 67,000
CAIRO - - 60,000
2015
1,954,000
2016
2,258,000
2017
2,684,000

FLIGHTS CATERED

200,000
Saudia Others Private

MEALS DELIVERED

36.4m
Saudia Others Private

CHAIRMAN'S STATEMENT

CREATING A DIVERSE ECONOMY

"Since 2011, SACC has achieved 3.71 percent compound annual profit growth, underlining its consistency in generating value for shareholders."

SHAREHOLDERS' EQUITY

1.64%

PROPOSED TOTAL DIVIDEND (SR)

5.55per share

CEO'S REVIEW

DRIVING EXCELLENCE

"By automating our processes, we can generate significant benefits for our company, clients, and suppliers."

NET PROFIT (SR)

481.7m

REVENUE (SR)

2.2bn

NATIONAL
VISION

Pursuing Saudization ensures we fulfil a key role in the development of the national economy, contributing to the growth and development of Saudi men, women, and youth.

Vital strategic elements that underpin our operations – human resources, procurement, and technology – have direct links with the Kingdom’s Vision 2030. A heightened focus on selective diversification will align Saudi Airlines Catering Company with the Kingdom’s Vision 2030, and in areas with emerging demographic and economic trends.

  • TOWARDS A NEW ECONOMY

    We are naturally inspired by the concept of Neom – the planned 26,500 km2 economic zone. Our own technology ambitions are aligned with those of the iconic futuristic city.

  • AT THE HEART OF TRANSFORMATION

  • All our operational divisions performed well in 2017, contributing to impressive financial results. Continued diversification was distinguished by significant advances in many areas, notably railways, retail, automation and female employment. Innovation in pilgrim catering has consolidated the Company’s leadership in this sector.

  • ABOUT SAUDI AIRLINES CATERING COMPANY

    Established in 1981 to provide catering services to the Kingdom’s flag carrier Saudia, Saudi Airlines Catering Company (SACC) has blossomed into a broad and diversified enterprise offering a full suite of food and beverage, retail, hospitality, and support services to local and international clients.

    MISSION

    To excel as a market leader through continual process improvement, innovation, and timely response, in our customers’ best interests

Our new strategic vision is
driving our transformation from
a dedicated In-flight caterer
into a multi-functional,
multi-service enterprise
.
  • STRATEGY AND BUSINESS MODEL

    LEADING THROUGH INNOVATION

  • Our strategic vision is driving our transformation from a dedicated in-flight caterer into a multi-functional, multi-service enterprise. This diversification reduces our dependency on the airline industry and is driven by two objectives:

    • Expand existing operations
    • Enter markets naturally connected to our core expertise

    Our strategy has direct links to the three pillars of Saudi Arabia’s Vision 2030: reduce dependence on oil, diversify the economy, and develop public service sectors.

our markets

Saudi Airlines Catering Company (SACC) is now a broad and diversified enterprise offering a full suite of food and beverage, retail, hospitality, and support services to local and international clients.

     14%
    JEDDAH
    45,000 meals/day
    King Abdul Aziz International Airport Catering Unit: Established 1981; produces an average of 45,000 meals per day.
    • BUSINESS LOUNGES11
    • RETAIL UNITS 13
    • CATERING UNITS 18
     7.6%
    MEDINA
    7,100 meals/day
    Prince Mohammad Bin Abdulaziz International Airport Catering Unit: Established 2004; produces an average of 7,100 meals per day.
    • BUSINESS LOUNGE2
    • RETAIL UNITS 1
     1%
    RIYADH
    37,000 meals/day
    King Abdul Aziz International Airport Catering Unit: Established 1983; produces an average of 37,000 meals per day.
    • BUSINESS LOUNGES6
    • RETAIL UNITS 8
    • RAILWAY UNITS 8
    • CATERING UNITS 14
     6%
    DAMMAM
    8,000 meals/day
    King Fahad International Airport Catering Unit: Established 1999; produces an average of 8,000 meals per day.
    • BUSINESS LOUNGES2
    • RETAIL UNITS 6
    • RAILWAY UNITS 2
    • CATERING UNITS 14
     4%
    CAIRO
    35,00 meals/day
    Cairo International Airport Catering Unit: Established 1984; produces an average of 3,500 meals per day.
    • BUSINESS LOUNGE1

CORPORATE GOVERNANCE REPORT

The Company is committed to maintain the best standards of quality and performance in all its activities.

FINANCIAL REPORT