Fawaz Alhokair working on restructuring budgets, eyes investments to become profitable: CEO

Marwan Aziz Moukarzel, CEO of Fawaz Abdulaziz Alhokair & Co.

Fawaz Abdulaziz Alhokair & Co.’s management is working on restructuring budgets, as well as activating and enhancing supply chain and inventory management, which impacted the company’s results, CEO Marwan Aziz Moukarzel said in a statement.

Commenting on Q3 FY2020/21 results, Moukarzel expressed confidence that the company is continuing on the right path towards effective asset management, which will result in value addition in the near future.

Fawaz Alhokair’s investments focus on implementing a set of initiatives aimed at achieving the best results. These initiatives ensure strengthening the company’s ability to return to the best profitability levels and add market value in the long term.

Moukarzel pointed out that the positive indicators are promising recovery in financial and operational performance, indicating that the revenue growth during Q3 2020 reflects the management’s tireless efforts to improve the company’s business in the Kingdom, its primary market, in light of a gradual recovery in the number of visitors and consumer confidence.

The CEO affirmed the company’s commitment to develop its business model to have a diverse assortment of stores, beyond the fashion retail business.

The Saudi-listed company has made remarkable progress in this direction through intensive investments in developing the food and beverage sector, while strengthening the retail stores’ network for sporting goods, and studying new growth opportunities in the cosmetic and electronics sectors.

Moukarzel stressed that the retailer aims to expand its e-commerce business by adding more brands to its subsidiary platforms, in addition to pursuing opportunities to acquire a firm specialized in electronic retailing.

Fawaz Alhokair will continue to develop its stores through the continuous improvement of its affiliated stores’ network, in line with the best international standards in the retail trade through re-evaluation and auditing of the profitability levels of stores and brands, with the aim of achieving increased profitability returns.

Furthermore, the company is seeking to redirect its investments towards opening new stores of the best performing brands, while developing the existing stores and adding modern shopping concepts, the CEO added.

Fawaz Alhokair successfully maintained the total exhibition space at 496,000 square meters as on Dec. 31, 2020, down 1.8% from the registered area in 2019.

The company’s portfolio of brands reached 90 by the end of Q3 2020. It launched five electronic platforms during Q3, bringing the total number of single-brand commercial platforms to 12.

Fawaz Alhokair turned to a net loss after Zakat and tax of SAR 761.9 million in the nine-month period ending Dec. 31, 2020, compared to a net profit of SAR 234.3 million in the year earlier, according to data compiled by Argaam.