Afg International Company · TADAWUL:4240
Afg International — Cenomi Retail — FY2024 Earnings Presentation
32 slides from Afg International's earnings presentation, 2025
Slide 1: Cenomi Retail Earnings Presentation
Cenomi Retail Earnings Presentation For the year ended 31 December 2024
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 Deputy Chief Financial Officer
Slide 4: Table of Contents
Table of Contents 05 At a Glance 09 Strategic and Operational Review 14 Financial Overview 25 Concluding Remarks 28 Appendix
Slide 5: At a Glance
7 cenomil ed Ata Glance
Slide 6: 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 880 stores 360 Saudi retail stores Kazakhstan Georgia c. 367K sqm 271 F&B outlets Armenia Azerbaijan Uzbekistan Jordan Egypt 9 countries 249 KSA International Core ma
Slide 7: Financial highlights
Financial highlights SAR 4.8 BN SAR 3.2 BN Revenues Kingdom of Saudi Arabia Retail Revenues 3.7% YOY 1.7% YOY SAR 469 MN SAR 1.3 BN EBITDA International Retail Revenues vs loss of SAR 115 MN 26.5% YOY SAR 197 MN SAR 363 MN Net loss Online Sales vs loss of SAR 1.1 Bn 2.9% YOY 7
Slide 8: 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% vs FY24 +7% +4% +14% -7% -12% +5% +10% 668,185 613,957 Q4-23 Q4-24 +18% 559,135 +32% 68,900 65,432 473,258 357,298 23,371 25,052 25,006 25,977 10,139 11,591 3,932 3,664
Slide 9: Strategic and Operational Review
Strategic and Operational Review 9
Slide 10: Transforming portfolio, expanding brand champions and enhancing operational efficiency
Transforming portfolio, expanding brand champions and enhancing operational efficiency Lead with winning brands Evolve to Drive Growth of Tier 1 Rise to meet the online ‘Saudi First’ Strategy Champion brands opportunity Geography Brands Category Channel ▪ Double down on Saudi market and ▪ 24 brands
Slide 11: 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 12: Our turnaround strategy is steadily advancing across all fronts
Our turnaround strategy is steadily advancing across all fronts Brand Rationalization Store Rationalization Operational Enhancement Market Rationalization ▪ 24 brands sold, in FY-24 ▪ 17 closed stores in Q4’24 and ▪ Revenue per store increased ▪ Exiting USA 45 store openings, for a net 75% YoY in Q4
Slide 13: Continued focus on optimizing market, brand & store footprint
Continued focus on optimizing market, brand & store footprint Store network evolution ▪ 10 stores opened Q4’24 ▪ 7 stores closed 1,345 ▪ 3 net openings 254 Retail 1,062 ▪ 41 stores opened 952 FY’24 ▪ 523 stores closed 267 251 852 880 ▪ 482 net closures 248 246 271 249 255 250 249 ▪ 35 stores opened
Slide 14: Financial Overview
7 cenomil ed Financial Overview
Slide 15: Financial performance overview
Financial performance overview Q4’24 FY’24 Highlights ▪ Retail revenues in the Kingdom of Saudi Arabia were up Revenues 23.9% QoQ and 9.1% YoY in Q4’24, supported by strategic SAR 1.3 BN 14.3% SAR 4.8 BN 3.7% measures to enhance customers’ retail experience (store renovations) and boost performance
Slide 16: Domestic retail and international portfolio drive revenue growth
Domestic retail and international portfolio drive revenue growth Revenue, SAR MN LFL consolidated sales growth, % ▪ Retail revenues in the Kingdom of Saudi Arabia increased 9.1% YoY, ▪ LFL growth driven by enhancement of customer experience through while international retail achieved 36.7% growth in
Slide 17: 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 % ▪ Domestic LFL sales witnessed a growth of 11.3%, supported by ▪ International LFL sales continued to improve, as a result of increased strategic measures to improv
Slide 18: Zara & Inditex witnessing growth during the period
Zara & Inditex witnessing growth during the period Fashion & F&B Revenues (SAR Million) +23.5% LFL +4.8% LFL -14.9% LFL 469 380 328 343 77 66 Zara Inditex F&B Q4'23 Q4'24 18
Slide 19: Online sales maintaining strong contribution to consolidated revenues
Online sales maintaining strong contribution to consolidated revenues Online revenues, SAR MN E-commerce, % of total revenues ▪ Online sales increased 4.5% YoY in Q4’24 as Zara and Inditex online ▪ Accessibility, convenience and technology adoption expected to further sales witnessed an increase of
Slide 20: Portfolio optimization enabling solid revenue per store
Portfolio optimization enabling solid revenue per store Revenue Per Store (Group) Revenue Per Store (KSA) 1600 1,500 1,800 900 2,323 2,800 1400 1,270 1,316 1,600 800 1,804 1,897 1,125 2,300 1,531 1,400 700 1200 859 1,200 600 1,800 Number of Number of 1000 800 1,000 500 930 1,300 600 800 Stores 400 S
Slide 21: Revenue diversification
Revenue diversification Revenue by division Revenue by channel Revenue by geography 8% 7% 7% 7% 6% 9% 8% 6% 8% 8% 4% 5% 5% 5% 3% 16% 21% 25% 21% 28% 26% 26% 31% 27% 33% 91% 92% 94% 92% 92% 72% 79% 66% 67% 71% 73% 69% 60% 63% 68% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24
Slide 22: Strategic retail price positioning and cost optimization help sustain margins
Strategic retail price positioning and cost optimization help sustain margins Gross Profit, SAR MN – GPM, % EBITDA, SAR MN – EBITDA Margin, % ▪ Gross Profit increased significantly, by 102 % YoY in Q4-24 to SAR 207 ▪ EBITDA turned positive in Q4-24, to SAR 110 million, compared to million, which res
Slide 23: EBITDA performance across segments
EBITDA performance across segments EBITDA KSA Retail, SAR MN – EBITDA Intl, SAR MN – EBITDA EBITDA F&B, SAR MN – EBITDA EBITDA Margin, % Margin, % Margin, % 200 40.0% 350 120.0% 7.6% 10 10.0% 100 151 6.3% 97.4% 5.0% 82 62 20.0% 300 100.0% 5.0% 6 5 290 5 0 -21 18.6% 4 12.2% 0.0% 7.4% 0.0% 250 -2.4% 0
Slide 24: Inventory optimization leading to enhanced efficiency
Inventory optimization leading to enhanced efficiency Inventory balance (SAR MN) Inventory efficiency ratios ▪ Inventory continues to be within an acceptable range, reaching SAR ▪ Effective management of inventory, including streamlined procurement 629 MN, as focus increases on inventory optimizatio
Slide 25: Concluding Remarks
7 cenomil ed Concluding Remarks
Slide 26: Key takeaways
Key takeaways Topline Profitability Financial position Brand Optimization International operations driving Reduction in net losses to SAR revenue growth, particularly the 197 million in FY-24, with a Balance sheet remains key area Continued progress total of 24 CIS, with domestic operations continue
Slide 27: Appendix
7 cenomil ed App endix
Slide 28: Income Statement
Income Statement SAR MN Q4-23 Q4-24 Change FY-23 FY-24 Change Revenue 1,155 1,320 14% 4,671 4,845 4% Cost of revenue -1,052 -1,114 6% -4,075 -4,213 3% Gross profit/(loss) 102 207 102% 597 632 6% Margin 8.9% 15.7% 6.8pp 12.8% 13.0% 0.3pp Selling and distribution expenses -36 -32 -10% -147 -126 -14% G
Slide 29: Balance Sheet
Balance Sheet SAR MN 31 Dec 23 31 Dec 24 Change SAR MN 31 Dec 23 31 Dec 24 Change Assets Equity & Liabilities Share Capital 1,148 1,148 0% Property, Plant and Equipment 1,150 1,081 -6% Reserves ( Statutory, Foreign Currency and Fair Value) -565 -617 9% Right-of-Use Assets 2,045 1,455 -29% Fair value
Slide 30: Consumer trends
Consumer trends Increasing digital / Moving forward, Cenomi Retail will need to cater to new consumer Scale digital e-commerce channels & reinvent adoption trends with significant implications for the future of the industry. role of stores Shift towards Re-mix portfolio experiences & new to experien
Slide 31: Presenters
Presenters Sarah Moussa Director of Investor Relations IR.retail@cenomi.com
Slide 32: THANK YOU
cenomi THANK YOU