Cenomi Retail says accumulated losses reach 25% of capital

Logo of Cenomi Retail

Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) announced that its accumulated losses reached 25% of the capital, according to a statement to Tadawul.

It recorded a one-off inventory charge of SAR 290 million in the quarter ended Dec. 31, 2022, and which was disclosed on Feb. 9, 2023. As part of the full-year audit process, and given that this one-off charge was related to previous periods, an amount of SAR 290 million is now recognized in the previous years, resulting in a restatement of the financial results.

Last year, based on an external assessment of tax and Zakat advisor, the company’s management decided to factor in SAR 53 million in provisions for customs and VAT liabilities for the period 2015-2020, which was readjusted after it was recorded in the set period.

According to data compiled by Argaam, Cenomi Retail reported net earnings of SAR 93.6 million by the end of short fiscal year from April 1 to December 2022, with SAR 14 million in profit for the fourth quarter.