Saudi Retail revenues grew 10.0% YoY to SAR 953.4 million in Q1-25, with the full Ramadan trading period in Q1-25 – occurring ten days earlier than last year – driving a notable boost in demand, particularly in fashion and end of season promotions. Revenue per store nearly doubled YoY, reaching SAR 2.9 million – a direct result of portfolio optimization and improved operational efficiency.

For international retail, revenues amounted to SAR 301.3 million in Q1-25, marking a 21.8% YoY increase. This growth was driven by strong performance in Uzbekistan (+123.1%), Azerbaijan (+33.1%), Georgia (+21.6%), and Jordan (+20.3%).

The F&B segment generated relatively stable revenues of SAR 80.0 million in Q1-25, compared to SAR 86.5 million in Q1-24, a 7.4% decline YoY.

Online sales came in at SAR 111.2 million in Q1-25, marking a 21.8% increase YoY. Online sales contribution to total revenue (including F&B) rose from 7.6% in Q1-24 to 8.3% in Q1-25.

This was primarily the result of:

● Gross Profit reached SAR 177.8 million in Q1-25, with a gross margin of 13.3%, marking a 88.0% increase YoY. The margin improved by 5.4pp, rising from 7.9% in Q1-24, effectively offsetting the impact of geopolitical headwinds that had weighed on topline performance in Q1-24. This uplift was supported by higher sales, continued cost optimization efforts, and improved operational efficiency, and reduction in the store network which led to a reduction in Utilities and Maintenance by 51.9 % in addition to a 1.1% reduction in employees’ salaries & benefits, and a decline of 3.0% in rent expenses.

● A decline in SG&A expenses by 34.1% YoY, reaching SAR 83.9 million in Q1-25, driven by Cenomi Retail’s commitment to cost rationalization , operational efficiencies .

● A decline in other operating income by 24.1% YoY in Q1-25 to SAR 37.3 million, as a lower capital gain was recorded from brands being sold in Q1-25 (SAR 22 million) versus Q1-24 (SAR 35 million).

● Net finance expenses declined by 34.7% YoY to SAR 58.6 million in Q1-25, with SAR 216.6 million debt payment decreasing the total debt from SAR 1.8 billion to SAR 1.6 billion, because of the committed efforts to deleverage the balance sheet

Saudi retail revenues of SAR 953.4 million, increased 14.0% QoQ, driven by the full Ramadan trading period in Q1-25 and strong sell-through from end-of-season promotions.

For international retail, revenues amounted to SAR 301.3 million in Q1-25, a decrease of 26.0% QoQ, following a normalized revenue base for the CIS countries that witnessed an end of seasons promotions.

F&B segment reported an increase of 3.8% QoQ, with revenues of SAR 80.0 million in Q1-25, reaping the result of the subway performance and the relative enhancement in Cinnabon.

Online sales came in at SAR 111.2 million in Q1-25, increasing 4.3% QoQ, with online revenue contribution (including F&B) to total revenue increasing from 8.1% in Q4-24 to 8.3% in Q1-25.

● Gross Profit reached SAR 177.8 million in Q1-25, marking a decrease of 14.0%, with a gross margin of 13.3% . The margin declined by 2.3pp, compared to 15.7% in Q4-24, due to lower margins as a result of the end of season promotional sales, continued cost optimization efforts, and improved operational efficiency, and reduction in the store network which led to a reduction in Utilities and Maintenance by 39.4 %.

● A decrease in SG&A expenses of 8.5% QoQ to SAR 83.9 million in Q1-25, driven by Cenomi Retail’s commitment to cost rationalization and operational efficiencies.

● An increase in other operating income by 31.0% QoQ in Q1-25 to SAR 37.3 million, as a SAR 22 million capital gain was recorded from brands being sold in Q1-25 versus no capital gain recorded in Q4-24.

● Net finance expenses declined by 14.8%, amounting to SAR 58.6 million, with SAR 216.6 million debt payment decreasing the total debt from SAR 1.8 billion to SAR 1.6 billion because of the committed efforts to deleverage the balance sheet.

We draw attention to Note (3-2) of the accompanying interim condensed consolidated financial statements, which indicates that the Group incurred accumulated losses of SR 1,605 million which exceeded share capital by SR 457 million as of 31 March 2025. As of that date, the Group’s current liabilities exceeded its current assets by SR 2,892 million. In addition, the Group’s total liabilities exceeded its total assets by SR 1,016 million. These events or conditions, along with other matters as set forth in details in Note (3-2) of the accompanying interim condensed 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 conclusion is not modified in respect of this matter.

On January 12, 2025, Cenomi Retail announced the latest developments to its previous announcement relating to negotiations regarding a potential significant transaction.

Subsequent announcements

On April 20, 2025, Cenomi Retail announced the Board of Directors resolution, by circulation, to appoint Dr. Abdullah Mohammed Mattar as a Member of the board of Directors (independent) to complete the current term of the Board of Directors, ending on August 11, 2026.