Afg International Company · TADAWUL:4240
Afg International — Cenomi Retail — H1 2025 Earnings Presentation
30 slides from Afg International's earnings presentation, August 2025
Slide 1: Cenomi Retail H1 2025 Earnings Presentation
Cenomi Retail H1 2025 Earnings Presentation August 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for use as an Earnings presentation for Cenomi Retail. (the “Company”). By attending or by reading this presentation, you agree to be bound by the following limitations. The information contained in this presentation is for background purposes on
Slide 3: Presenters
Presenters Salim Fakhouri Ahmed Abdelkareem Chief Executive Officer Chief Financial Officer
Slide 4: Agenda
Agenda 1 Highlights & Strategic Review 2 Financial Overview 3 Concluding Remarks 4 Appendix
Slide 5: Highlights & Strategic Review
Highlights & Strategic Review 5
Slide 6: H1 2025 Performance Highlights
H1 2025 Performance Highlights Operational Performance Segmental Performance Financial Performance Store Network KSA Retail Revenue Revenue 789 stores at June end SAR 1,636.5bn SAR 2,463.1bn -17.1% year-on-year -2.7% year-on-year +2.0% year-on-year POS Transactions KSA International Retail Revenue E
Slide 7: Continuing our Path to Enhanced Potential and Profitability
Continuing our Path to Enhanced Potential and Profitability Continuing our path to enhanced potential and profitability Phase 1: Fix The House Phase 3: Achieving Optimal Potential ▪ Rationalize brand and store portfolio ▪ Scale existing brands to maximum potential ▪ Exit/stabilize non-strategic mark
Slide 8: Continued Focus On Optimizing Market, Brand & Store Footprint
Continued Focus On Optimizing Market, Brand & Store Footprint Store network evolution 952 ▪ 15 stores opened 880 Q2’24 ▪ 122 stores closed 852 806 789 248 271 Retail 246 ▪ No stores opened 260 269 Q2’25 ▪ 26 stores closed 255 250 249 219 209 ▪ 4 stores opened Q2’24 ▪ 7 stores closed 449 356 360 327
Slide 9: 2025 Fashion and F&B Strategic Focus
2025 Fashion and F&B Strategic Focus FASHION F&B Elevating in Store experience Customer-Centric Innovation ▪ Renovations focused on layout, fitting rooms, and category mix ▪ Tailored product launches (e.g. Cinna Warmer, Bon Topping) to local tastes ▪ Stores redesign to enhance brand feel and custome
Slide 10: Al-Futtaim as Strategic Shareholder
Al-Futtaim as Strategic Shareholder A Share Purchase Agreement has been signed between Cenomi Retail’s Founding Shareholders and Al-Futtaim to acquire a 49.95% stake and provide a shareholder loan of not less than SAR 1.3 bn upon completion of the transaction The transformative partnership would del
Slide 11: Financial Overview
i cenomi ed Financial Overview
Slide 12: H1 2025 Revenue Growth Supported by International Portfolio
H1 2025 Revenue Growth Supported by International Portfolio Revenue (SAR Million) LFL sales growth (%) Q2 2024 Q2 2025 Chg. H1 2024 H1 2O25 Chg. +2.0% 2,413 2,463 Group -12.6% -8.9% +3.7pp. -7.3% -1.4% +5.9pp. -7.0% Saudi -15.6% -16.7% -1.1pp. -8.9% -4.9% +4.0pp. 1,213 1,128 International +0.2% +9.3
Slide 13: Growing Penetration and Strong Growth of Online Channels
Growing Penetration and Strong Growth of Online Channels Online revenue (SAR Million) E-commerce (% of total revenue) +15.7% 7.9% 196 169 7.5% +8.5% 84 78 6.4% 7.0% Q2 24 Q2 25 H1 24 H1 25 Q2 24 Q2 25 H1 24 H1 25 ▪ Growth was supported by strong performance from Zara and Inditex across both KSA ▪ Gr
Slide 14: Portfolio Optimization Enabling Solid Revenue per Store
Portfolio Optimization Enabling Solid Revenue per Store Revenue Per Store (Group) Revenue Per Store (KSA) 1,656 1,815 1000 1,275 1,500 1,430 1,800 2,916 1,316 500 3,500 900 1,600 450 1,897 800 1,400 400 2,323 2,196 3,000 700 2,500 1,200 350 600 1,000 Number of 300 2,000 Number of 500 800 Stores 250
Slide 15: Improved Gross Profit Margin in H1-25 Supported by Cost Efficiencies
Improved Gross Profit Margin in H1-25 Supported by Cost Efficiencies Gross Profit (SAR Million) Margin 17.1% 16.8% 12.5% 14.9% ▪ Margin improvement in H1-25 supported by cost efficiencies and lower operational overhead +21.5% 367 ▪ Broadly stable margin in Q2-25 despite timing shift of -8.8% 302 the
Slide 16: EBITDA and Net Profit
EBITDA and Net Profit EBITDA (SAR Million) Net Profit (SAR Million) Margin 17.8% 2.0% 8.8% 5.7% Margin 6.9% -7.5% -2.8% -3.4% 216 212 5 -89.3% 10 -34.4% -201.1% -23.1% 61 139 84 80 4 23 69 150 56 122 66 -32 (1) (85) (68) (83) Q2 24 Q2 25 H1 24 H1 25 Q2 24 Q2 25 H1 24 H1 25 ▪ Despite a 21.3% reductio
Slide 17: Disciplined Cash Management
Disciplined Cash Management FY-24 Q1-25 H1-25 Total Net Debt / Net Debt to EBITDA (SAR Million) Net Debt / Total Debt 1,842.6 1,626.0 1,616.7 EBITDA 3.4x 2.6x 3.9x Net Debt 1,586.4 1,502.3 1,518.0 1,586 1,502 1,518 EBITDA LTM 460.9 580.7 387.8 (Last 12 Month) ▪ Net debt stood at SAR 1.5 billion at t
Slide 18: Concluding Remarks
i cenomi ed Concluding Remarks
Slide 19: Key Takeaways
Key Takeaways Topline Profitability Financial position Strategy Execution Revenue increased by 2.0% YoY in Despite significant efforts in Maintained deleveraging Ongoing transformation across H1 2025, supported by strong cost reduction and operational efforts as part of the transition brands, stores
Slide 20: Appendix
i cenomi ed Appendix
Slide 21: Income Statement
Income Statement SAR million Q2-24 Q2-25 Change (+/-) 6M-24 6M-25 Change (+/-) Revenue 1,213.4 1,128.3 -7.0% 2,413.9 2,463.1 2.0% Cost of revenue -1,006.0 -939.2 -6.6% -2,112.0 -2,096.1 -0.8% Gross profit/(loss) 207.3 189.1 -8.8% 301.9 367.0 21.5% Margin 17.1% 16.8% -16.9pp 12.5% 14.9% -12.4pp Selli
Slide 22: Balance Sheet
Balance Sheet SAR million FY-24 H1-25 Change (+/-) SAR million 31-Dec-24 31-Jun-25 Change (+/-) Assets Equity & Liabilities Share Capital 1,147.7 1,147.7 0.0% Property, Plant and Equipment 1,081.0 1,066.4 -1.4% Reserves ( Statutory, Foreign Currency and Fair Value) -617.2 -606.8 -1.7% Right-of-Use A
Slide 23: Cenomi Retail at a Glance
Cenomi Retail at a Glance The leading franchise retailer in Saudi Arabia, and the only listed business of its type in the Middle East 789 stores 311 Saudi retail stores Kazakhstan Georgia c. 315K sqm 269 F&B outlets Armenia Azerbaijan Uzbekistan Jordan 219 Egypt 8 countries International KSA stores
Slide 24: KSA Consumer Spending on Rising Trend
KSA Consumer Spending on Rising Trend POS Transactions* - KSA Market (SAR Million) POS Transactions* - KSA Market (SAR Million) +9% +3% -1% -13% -9% -26% -4% +10% 668,185 613,957 Q2-24 Q2-25 +18% 559,135 65,219 62,790 +32% 473,258 357,298 24,648 24,412 181,738 165,704 20,318 20,987 12,518 10,879 4,6
Slide 25: Strategic Sales Measures Drive Revenue Growth and Profitability
Strategic Sales Measures Drive Revenue Growth and Profitability LFL Saudi retail sales growth % LFL International retail sales growth % ▪ Saudi retail LFL declined 16.7% in Q2-25, driven by the timing shift of Ramadan and ▪ International LFL grew 9.3% in Q2-25, supported by continued momentum in CIS
Slide 26: Revenue Diversification Efforts Ongoing
Revenue Diversification Efforts Ongoing Revenue by division Revenue by channel Revenue by geography 4% 4% 3% 3% 4% 7% 7% 6% 6% 7% 6% 8% 8% 8% 8% 22% 20% 29% 28% 29% 23% 26% 31% 33% 32% 94% 92% 92% 92% 93% 74% 77% 67% 71% 67% 69% 68% 60% 63% 61% Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q1 25 Q
Slide 27: KSA EBITDA Impacted by Tax Liability Settlement
KSA EBITDA Impacted by Tax Liability Settlement EBITDA KSA Retail, SAR MN EBITDA Intl, SAR MN EBITDA F&B, SAR MN EBITDA Margin, % EBITDA Margin, % EBITDA Margin, % 200 20.0% 70 25.0% 19.2% 15.4% 10 10.0% 18.6% 7.6% 6.3% 60 63 15.4% 5.3% 15.0% 61 150 12.2% 13.8% 20.0% 5.0% 150 6 5 10.3% 50 51 56 10.0
Slide 28: Business Model Adapting to Consumer Trends
Business Model Adapting to Consumer Trends Moving forward, Cenomi Retail will need to cater to new consumer trends Scale digital channels Increasing digital / e-commerce adoption with significant implications for the future of the industry. & reinvent role of stores Shift towards Re-mix portfolio to
Slide 29: Investor Relations Contact
Investor Relations Contact Sarah Moussa Director of Investor Relations IR.retail@cenomi.com
Slide 30: Thank You
cenomi THANK YOU