Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) Announces Its Annual Financial Results for the Period Ending on 31 December 2024 (Twelve Months)
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 4,844.5 | 4,671.2 | 3.71 | ||
| Gross Profit (Loss) | 631.5 | 596.7 | 5.83 | ||
| Operational Profit (Loss) | 237.3 | -621.7 | - | ||
| Net profit (Loss) | -197.5 | -1,112.8 | -82.25 | ||
| Total Comprehensive Income | -208.5 | -1,152.4 | -81.91 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | -1,018.1 | -806.3 | 26.27 | ||
| Profit (Loss) per Share | -1.77 | -10.3 | |||
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | 1,606.9 | 140 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | Cenomi Retail reported consolidated revenues of SAR 4.8 billion in FY-24, increasing 3.7% YoY, supported by the Company’s focus on enhancing operational efficiencies across every retail category, in addition to its brand optimization program.
Saudi retail revenues of SAR 3.2 billion, decreased 1.7% YoY, due to the brand optimization program implemented in 2024.
International retail operations generated revenues of SAR 1.3 billion in FY-24, up 26.5% YoY, largely supported by a robust performance by CIS. Azerbaijan witnessed an improvement of 26.6% YoY in FY-24, while Georgia increased 26.8% YoY, and Uzbekistan outperformed, achieving revenues of SAR 132 million in FY-24.
F&B segment reported revenues of SAR 328 million in FY-24, down 13.5% YoY, with total number of 35 nonperforming stores closed in FY-24.
Online sales amounted to SAR 363 million in FY-24, decreasing 2.9% YoY, with online revenue contribution (including F&B) to total revenue decreasing from 8.0% to 7.5% in FY-24 , impacted temporarily by the brand optimization program While Zara & Inditex online sales recorded an increase of 6.6 % YoY |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | Net loss showed improvement, totaling SAR 197 million in FY-24, compared to a loss of SAR 1.1 billion in FY-23.
As in Q4-24 recorded net loss, amounted to SAR 149 million, compared to a net loss of SAR 1 billion in Q4-23, mainly driven by accounting adjustment of SAR 141 million year-end adjustment as per IFRS standards, goodwill and other assets were assessed independently and impaired.
As the company continues executing its strategy with a focus on operational enhancement and cost optimization, positive results were seen in the performance of Tier 1 champion brands, despite the impact of non-recurring expenses incurred during this phase of strategic implementation. This was driven by:
• Stable gross margin with no significant reduction achieving a gross margin of 13.0 % in FY-24 compared to 12.8% in FY-23
• A decrease in SG&A expenses of 23.2% YoY to SAR 407 million in FY-24, primarily due to a focus on operational efficiencies, and progress on the brands divestment program.
• Net finance expenses decreased 4.2% YoY to SAR 298 million in FY-24, mainly driven by the repayment of SAR 664 million of debt during 2024. |
| Statement of the type of external auditor's report | Notice |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | Material uncertainty related to going concern
We draw attention to Note (3-2) of the accompanying consolidated financial statements, which indicates that the Group incurred a net loss of SR 197 million for the year ended 31 December 2024, and as of that date it recorded accumulated losses of SR 1,607 million. In addition, the Group’s current liabilities exceeded its current assets by SR 2,925 million as of 31 December 2024. These events or conditions, along with other matters as set forth in details in Note (3-2) of the accompanying consolidated financial statements, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter Consolidated financial statements indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform to the current period’s presentation. |
| Additional Information | Q4-24 announcements
On October 08, 2024, Cenomi Retail announced the opening of 12 new Subway branches across the Kingdom in one day, thus achieving a new world record.
On October 14, 2024, Cenomi Retail announced the expansion of its strategic presence in Azerbaijan, with the opening of a new Zara store at Crescent Mall, following the opening of 6 new Inditex stores in 2024.
On October 22, 2024, Cenomi Retail announced the results of the Extraordinary General Assembly Meeting (First Meeting).
On December 08, 2024, Cenomi Retail announced the opening of its newly renovated flagship Zara store at Nakheel Mall in Riyadh, following a major renovation.
On December 10, 2024, Cenomi Retail announced the opening of 14 new Subway branches across the Kingdom in one day, surpassing its previous record.
Subsequent announcements
On January 12, 2025, Cenomi Retail announced the latest developments to its previous announcement relating to negotiations regarding a potential significant transaction. |
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