‎“Cenomi Retail” jumped 173% during Q2, to SR169 million ‎

The net profit after zakat and tax of Fawaz Abdulaziz Al Hokair and Partners Company “Cenomi Retail” jumped by 173.3% to reach 169.2 million riyals during the second quarter, compared to 62 million riyals in the same quarter of last year. This came after the announcement today of the preliminary financial results for the period ending on June 30, 2023 (6 months).

The operating profit amounted to 273.7 million riyals during the second quarter compared to 135.7 million riyals in the same quarter of last year, an increase of 101.6%, while the total profit amounted to 329.2 million riyals during the second quarter compared to 271.7 million riyals during the same quarter of last year, a rate of 21.4%. %

The net profit after zakat and tax in the current period amounted to 113.8 million riyals, compared to a loss of 1.7 million riyals in the same period last year.

Earnings per share amounted to 0.98 riyals in the current period, compared to 0.02 riyals in the same period last year.

“Cenomi Retail” recorded a net profit of 169.2 million riyals in the second quarter of 2023 (the three months ending in June 2023), compared to a net profit of 61.9 million riyals in the second quarter of 2022 (the three months ending in June 2022). . This result is attributed to:

• Revenue decreased by 5.4% on an annual basis, to record 1,613.4 million riyals in the second quarter of 2023. This decrease is mainly due to the continued implementation of the program to enhance operational efficiency, which witnessed the closure of 76 stores in the second quarter of 2023. ..

Total profit increased by 21.4% on an annual basis, from 271.1 million riyals in the second quarter of 2022, to reach 329.2 million riyals in the second quarter of 2023. This increase can be attributed to a decrease in cost of revenues by 10.5%. This was mainly reinforced by a decrease in the cost of goods sold by 8.5% on an annual basis.

The slight increase in selling, administrative and general expenses: they increased by 1.0% to reach 130.7 million riyals, compared to 129.5 million riyals in the second quarter of 2022. The increase resulted from intensive marketing activities.

The increase in other operating income in the second quarter of 2023, as it grew by 174.3% on an annual basis, to reach 118.2 million riyals, compared to 43.1 million riyals in the same period last year. This increase resulted from the support provided by the owners

Net profit amounted to 169.2 million riyals in the second quarter of 2023 (the three months ending in June 2023), compared to a net loss of 55.4 million riyals in the first quarter of 2023 (the three months ending in March 2022). This is due to:

• Revenue increased by 13.6% on a quarterly basis, to record 1,613.4 million riyals in the second quarter of 2023, thanks to the remarkable trade activity witnessed by Eid Al-Fitr and the period that followed, and the accompanying sales and marketing efforts and early discounts.

Certain comparative figures have been reclassified to conform to the current period’s presentation

Right to use assets and modifications of lease obligations

The company, through an independent third party, conducted a comprehensive assessment of the right to use assets and lease obligations under IFRS16, which resulted in an adjustment to the opening balances as of January 1, 2022, which resulted in an increase in undistributed earnings of $56.5 million. SAR as of June 30, 2023

Recent developments related to “Fas Labs”.

Cenomi Retail announced that FAS Labs has obtained final approval from the Central Bank of Saudi Arabia to license FAS Finance. The approval allows FAS Finance to engage in consumer microfinance through financial technology. Cenomi Retail owns a stake in FAS Finance through its 50% stake in FAS Labs. It is worth noting that FAS Labs, a limited liability company, is owned by Cenomi Centers and Cenomi Retail. The approval was obtained on 7/25/2023

Al-Mubarak Real Estate Income Fund 2

“Cenomi Retail” announced on 07-18-2023 that it had received a notice of termination and liquidation of Al-Mubarak Real Estate Income Fund 2, in which the company owns 33.33% of the fund’s total units. The fund’s assets have been sold at a value of 1,525,000,000 riyals, and the first part will be distributed at a value of 360,000,000 riyals, equivalent to 60% of the nominal value of the investment units of the fund. And “Cenomi Retail” will receive an amount of 120,000,000 riyals, or 33.33% of the total distributions decided in the first part, as the book value of the company’s share on December 31, 2022, amounted to 217 million riyals.

An increase in other operating income in the second quarter of 2023, as it grew by 96.4% on a quarterly basis, to reach 118.2 million riyals, compared to 60.2 million riyals in the first quarter of 2023. This increase resulted from the continued support provided from the owners of the leading brands of the company.

“Cenomi Retail” recorded a net profit of 113.8 million riyals in the first half of 2023 (the six months ending in June 2023), compared to a net loss of 1.7 million riyals recorded in the first half of 2022 (the six months ending in June 2022). This result can be attributed to:

• Revenues decreased slightly by 1.9% on an annual basis, to record 3,034.0 million riyals in the first half of 2023. This decrease is mainly due to the continued implementation of the program to enhance operational efficiency, which witnessed the closure of 171 stores in the first half of 2023.

An increase in other operating income, as it grew by 91.0% on an annual basis, to reach 178.4 million riyals in the first half of 2023, compared to 93.4 million riyals in the same period last year. This increase resulted mainly from the support provided by the owners

An increase in total profit by 15.4% on an annual basis, from 421.4 million riyals in the first half of 2022, to reach 486.1 million riyals in the first half of 2023. This increase is due to a decrease in cost of revenues by 4.6% Mainly driven by a decline of 18.4% and 9.0% year-on-year in rental and salary costs respectively, as the company continues to implement its cost reduction program.

An increase in selling, administrative and general expenses by 27.1% to reach 271.4 million riyals, compared to 213.5 million riyals in the first half of 2022. The increase resulted from the increase in employee costs due to the payment of end-of-service compensation during the first quarter of this year In addition to intensive marketing activities.