Cenomi Retail swings to SAR 1.17B loss in 2023, SAR 1.08B in Q4

Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) logged SAR 1.17 billion in net loss for 2023, against SAR 39.4 million in net profit a year earlier.

The company's operating loss amounted to SAR 640.1 million in 2023, against SAR 328 million in operating income in 2022. This was mainly due to reporting SAR 772 million one-offs related to brand exits and store closures.

Furthermore, general and administrative expenses increased year-on-year (YoY) by 66.2% to SAR 394 million as a result of recording a one-off provision related to the conversion of the store portfolio. Net financing costs also soared 56.1% YoY to SAR 326.2 million in 2023 amid higher interest rates.

The 5.3% decrease in full-year revenues was primarily driven by the company’s ongoing strategic brand rationalization program and the closure of 219 retail stores. This is besides posting goodwill and asset impairment of SAR 646 million.

In Q4 2023, Cenomi Retail swung to a net loss of SAR 1.08 billion, from a net income of SAR 17.52 million in the prior-year period.

Sequentially, net losses widened from SAR 204.12 million in Q3 2023.

Shareholders' equity (after minority interest) amounted to SAR -778.67 million, compared to SAR 438.06 million a year earlier.

Accumulated loss amounted to SAR 1.40 billion at the end of the current period, or 122.3% of capital.

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