Cenomi Retail identifies 26 non-strategic brands as part of sale program, expects revenue impact of SAR 288 mln

Fawaz Abdulaziz Alhokair & Co (Cenomi Retail) Announced on Sunday that it has furthered its growth and transformation journey through the completion of a number of strategic transactions that will support the company’s commitment to be the leading retailer in the Kingdom of Saudi Arabia.
Building on the strategic imperative of leading the categories in which it operates, with Cenomi Retail’s stated objective of focusing on Champion Brands occupying the number one or two positions in their respective segments, Cenomi Retail has identified 26 non-strategic brands that will form part of the Board of Directors approved sale program.
The Company said that the brands earmarked for disposal will have an expected revenue impact of circa SAR 288 million, with an uplift in profitability of circa SAR 25 million accruing as the divestment program is completed.
With increasing focus on its food and beverage business, the company has furthered its commitment in this area through the divestment of the non-strategic Azal restaurant chain as well as the sale of Shawarma Almuhalhl, all for SAR 25 million, while growing the Subway brand with the completion of the acquisition of 30 Subway stores across the Kingdom, adding directly operated stores to its sub franchisor store footprint.
This program will support the evolution of the brand portfolio and facilitate the continued focus on bringing the most coveted winning brands to the Kingdom to meet consumer needs and support the growth of retail across the country.
This strategic growth in the F&B sector will be furthered by 17 additional Subway locations opening in 2023 as well as 15 Cinnabon openings.