Afg International Company · TADAWUL:4240
Afg International — Cenomi Retail — Investor Presentation (May 2025)
48 slides from Afg International's investor presentation, May 2025
Slide 1: Cenomi Retail Investor Presentation
Cenomi Retail Investor Presentation May 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for use as an Investor 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 onl
Slide 3: Table of Contents
Table of Contents 04 At a Glance 06 Why Cenomi Retail? 10 Retail Sector Overview 13 Macro Overview 16 Strategic and Operational Review 27 Financial Overview 35 Concluding Remarks 37 Appendix
Slide 4: At a Glance
7 cenomi ed Ata Glance
Slide 5: 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 808 stores 328 Saudi retail stores Kazakhstan Georgia c. 332K sqm 261 F&B outlets Armenia Azerbaijan Uzbekistan Jordan 219 Egypt 8 countries International KSA stores
Slide 6: Why Cenomi Retail?
7 cenomi ed Why Cenomi Retail?
Slide 7: Leading fashion and F&B franchise retailer in KSA
KSA A leading fashion and F&B franchise retailer in KSA, representing top global brands Q1’25: +10.0% YoY Saudi Arabia’s leading fashion and F&B franchise retailer Representing Brand Champions across a well diversified portfolio No. 1 589 127 Fashion Franchise Stores Malls Retailer in KSA Apparel 28
Slide 8: Strong international presence in key emerging markets
Strong international presence in key emerging markets with a solid growth potential 7 219 38 31 87,823 Countries Stores Malls Brands GLA in SqM Diversified International footprint Tier-1 Champion Brands (percentage of Intl Revenues) Tier 1 Champion Kazakhstan Brands Georgia 1% 35% (Core Brands) Arme
Slide 9: E-commerce continues to be an area of focus
E-commerce continues to be an area of focus for the company E-commerce presence …across monobrand websites Top brands with monobrand websites: 5%* 2%* Online Other Fashion Online Zara sales brands as % of total as % of total Fashion Fashion Revenue Revenue 28% * 20 Online F&B sales as % Monobrand of
Slide 10: Retail Sector Overview
7 cenomi ed Retail Sector Overview
Slide 11: KSA retail market is growing 30%+ by 2028
KSA retail market is growing 30%+ by 2028 including strong growth in fashion, accessories, and F&B Saudi Arabia retail market, market size in SAR Bn Forecast CAGR growth in selected retail categories Market size in SAR Bn 2023A-’28E CAGR (%) 837 +5.3% 792 (1) 310 F&B +3.5% 751 368 715 +29.2% 682 648
Slide 12: Well positioned to seize fashion and F&B opportunities
Cenomi Retail is well positioned to seize the exceptional opportunities within the fashion and F&B market The New KSA Consumer presents attractive prospects for Cenomi Retail, with the Fashion & Accessories segment being one of the fastest-growing at a CAGR of 4.6% for 2023-2028, and F&B being the l
Slide 13: Macro Overview
7 cenomi ed Macro Overview
Slide 14: KSA economy on a solid growth trajectory
The economy of the Kingdom of Saudi Arabia is on a solid growth trajectory Since the announcement of Vision 2030, KSA has firmly established itself as one of the most attractive growth stories around the globe KSA is the one of the fastest-growing economies … …with a booming consumer outlook… Relati
Slide 15: Riyadh is a fast growing and underpenetrated market
Riyadh is a fast growing and underpenetrated market Riyadh’s population steadily increasing Riyadh retail market is underpenetrated City Population (mn) Conservative scenario vs Organized retail penetration, GLA m2 per capita Government ambition to double the size of Riyadh 2.13 CAGR: 1.37% 7.75 7.8
Slide 16: Strategic and Operational Review
Strategic and Operational Review 16
Slide 17: 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 18: Where we stand and where we are headed
Where we stand and where we are headed Continuing our path to enhanced potential and profitability Phase 1: Fix The House 2024-2026 Phase 2: Embark on Growth Continuous progress on store network optimization Rationalize brand and (1,345 in 2023 reduced by 60 % in Q1-25) Closing underperforming s
Slide 19: Translating strategy into operational results
Translating strategy into operational results Brand Rationalization Store Rationalization Operational Enhancement Market Focus Brand Focus Divestment of non- 75 closed stores in Q1’25 KSA revenue per store Strategic retreat from Strategic expansion of core brands Ipekyol, and 3 store openi
Slide 20: 2025 fashion strategic focus
2025 fashion strategic focus Elevating In-Store Experience Renovations focused on layout, fitting rooms, and category mix Stores redesign to enhance brand feel and customer perception. Selective Store Expansion Opening in high-traffic, premium locations to strengthen brand presence. Driving pr
Slide 21: 2025 F&B strategic focus
2025 F&B strategic focus Ramadan promotions that contributed to implementation of F&B 2025 strategy Customer-Centric Innovation Tailored product launches (e.g. CinnaWarmer, Bon Topping) to local tastes. Packaging and bakery upgrades helping lift ticket sizes without relying on aggressive discoun
Slide 22: Renovation program delivered ~70% average sales increase
Renovation program by Cenomi Retail has delivered an average ~70% sales increase in renovated stores Continuing our path to enhanced potential and profitability • Location: Kingdom Center • Location: Mall of Arabia • Location: Red Sea Mall • Location: Kingdom Center • City: Riyadh • City: Jeddah • C
Slide 23: Recently completed renovations at Nakheel Mall
Recently completed successful renovations at Nakheel Mall over the last year • Location: Nakheel Mall • Location: Kingdom Center • City: Riyadh • City: Riyadh • New GLA (old): 3,000 sqm+ (1,624 sqm) • New GLA (old): 680 sqm (680 sqm) • Project duration: 4.5 months • Project duration: 2.5 months • La
Slide 24: Next-generation flagship malls opening in KSA
Multiple next-generation flagship malls opening in KSA, supporting new top-producing flagship stores across the brand portfolio Unprecedented opportunity for new flagship stores Cenomi Centers Flagship Malls under construction • Many new flagship malls are opening in KSA over the next few years, pro
Slide 25: International portfolio
International portfolio The CIS region continues to spearhead solid sales growth. Country # of Stores # of Brands # of Malls Strategically optimizing operations; exited several non-prime locations, including the complete withdrawal from “28 Mall” in Armenia 27 15 4 Azerbaijan Products uniquely
Slide 26: F&B Excellence: operating the category champions
F&B Excellence: Our QSR strategy is to operate the champions of each F&B category We operate leading F&B brands and category champions… • Working on increasing the store sales • Exiting non-core brands • Increasing home delivery sales • Investing more in marketing initiatives • Presenting new additi
Slide 27: Financial Overview
7 cenomi ed Financial Overview
Slide 28: Financial performance overview
Financial performance overview Q1’24 Q1’25 YoY Highlights Revenues growth on the back of KSA retail and international Revenues SAR 1.2 BN SAR 1.3 BN 11% growth, driven by portfolio optimization and strong performance across key markets Gross Profit nearly doubled to SAR 178 million, with margin
Slide 29: 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 rose 10.0% in Saudi Arabia and 21.8% internationally, Group LFL sales grew 5.6% in Q1 2025, reflecting sustained momentum supported by portfolio optimization and stro
Slide 30: 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 grew 5.1% in Q1 2025, supported by store-level International LFL was supported by continued organic momentum, initiatives, portfolio optimizati
Slide 31: Online sales maintaining strong contribution to revenues
Online sales maintaining strong contribution to consolidated revenues Online revenues, SAR MN E-commerce, % of total revenues Online revenues rose 21.8% YoY to SAR 111 million, driven by strong Online contribution to total revenue continued to increase, reflecting growth across fashion brands, w
Slide 32: 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 nearly doubled YoY to SAR 178 million, with margin EBITDA turned positive at SAR 116 million, with margin improving to expanding from 7.9% to
Slide 33: EBITDA performance across segments
EBITDA performance across segments EBITDA KSA Retail, SAR MN EBITDA Intl, SAR MN EBITDA F&B, SAR MN EBITDA Margin, % EBITDA Margin, % EBITDA Margin, % 18.6% 160 20.0% 70 25.0% 10 10.0% 140 151 7.6% 6.3% 63 5.0% 60 61 5.3% 120 15.0% 20.0% 10.3% 5.0% 5 6 12.2% 50 19.2% 5 51 15.4% 100 4 98 4 0.0% 80 10
Slide 34: Inventory optimization leading to enhanced efficiency
Inventory optimization leading to enhanced efficiency Inventory balance (SAR MN) Inventory efficiency ratios Inventory levels remained well-managed at SAR 603 million, reflecting Efficiency ratios improved YoY, supported by streamlined procurement, continued focus on optimization lower terminal
Slide 35: Concluding Remarks
7 cenomi ed Concluding Remarks
Slide 36: Key takeaways
Key takeaways Topline Profitability Financial position Strategy Execution Revenue grew 11.2% YoY to Returned to profitability with SAR 216 million in debt With Phase 1 nearly complete, SAR 1.3 billion, supported by SAR 1.8 million net profit in repayments during the quarter the focus shifts to Embar
Slide 37: Appendix
7 cenomi ed App endix
Slide 38: Stock performance, shareholder composition and peer benchmarking
Stock performance, shareholder composition and peer benchmarking 200.00 Market Cap (SAR mn)* TTM P/E Ratio (x) TTM P/B Ratio (x) TTM ROE (%) 180.00 • ISIN Code: SA000A0LB2R6 160.00 • Average 1-year daily volume traded: JARIR 14,856 15.30 8.80 55.39 140.00 1.83M TASI Index 120.00 • 1-year daily high
Slide 39: KSA population increasing, attracting more tourists
KSA is home to an increasing population, whilst attracting more tourists KSA has a high share of urban population Tourism industry is thriving in the Kingdom Share of population in urban agglomerations of more than 1 million, % 120 300 256 5 cities with 206 66 1+ million 100 250 population 80 117 20
Slide 40: KSA has the largest and fastest growing F&B market in MENA
KSA has the largest and fastest growing F&B market in MENA F&B Market Size per country (2022, USD bn, 2022-2026, CAGR %) GCC North Africa Levant* 45 18 9 22 CAGR (2022-2026) 11% MENA Total 72 Currency devaluation not fully taken into account in 9% the growth rate 7% 6% 11 6% 6% 12 5% 5% 5% 5% 5% 5%
Slide 41: ~2 million sqm of prime retail space opening in KSA
~2 million sqm of prime retail space opening in KSA, supporting a robust store opening pipeline The Avenues New Murabba Al-Othaim Diriyah Gate (Riyadh and DAK) (Riyadh) (Riyadh and DAK) (Riyadh) Distinctive & upscale mixed-use A visionary project to build a new, Large mixed-use destination A World-c
Slide 42: Optimizing market, brand & store footprint
Continued focus on optimizing market, brand & store footprint Store network evolution 12 stores opened 1,062 Q1’24 292 stores closed 952 280 net closures 251 880 852 Retail 248 808 1 stores opened Q1’25 246 271 63 stores closed 249 261 62 net closures 255 250 249 219 5 stores opened Q1
Slide 43: Revenue diversification
Revenue diversification Revenue by division Revenue by channel Revenue by geography 8% 6% 8% 8% 8% 7% 7% 7% 6% 6% 4% 4% 4% 3% 3% 17% 20% 21% 23% 22% 28% 26% 29% 33% 31% 92% 94% 92% 92% 92% 79% 77% 72% 71% 74% 67% 67% 69% 60% 63% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24
Slide 44: Portfolio optimization enabling solid revenue per store
Portfolio optimization enabling solid revenue per store Revenue Per Store (Group) Revenue Per Store (KSA) 1,500 1,652 1200 1,800 1,542 2,907 1,316 600 3,500 1,270 1,600 1,804 1000 1,130 1,400 500 2,323 3,000 1,897 2,500 Number of Number of 800 1,200 400 1,000 2,000 600 800 Stores 300 1,500 Stores Re
Slide 45: Income Statement
Income Statement SAR million Q1-24 Q1-25 Change (+/-) 3M-24 3M-25 Change (+/-) Revenue 1,201 1,335 11% 1,201 1,335 11% Cost of revenue -1,106 -1,157 5% -1,106 -1,157 5% Gross profit/(loss) 95 178 88% 95 178 88% Margin 7.9% 13.3% 5.4pp 7.9% 13.3% 5.4pp Selling and distribution expenses -42 -22 -47% -
Slide 46: Balance Sheet
Balance Sheet SAR million 31-Mar-24 31-Mar-25 Change (+/-) SAR million 31-Mar-24 31-Mar-25 Change (+/-) Assets Equity & Liabilities Share Capital 1,148 1,148 0% Property, Plant and Equipment 1,081 1,084 0% Reserves ( Statutory, Foreign Currency and Fair Value) -617 -617 0% Right-of-Use Assets 1,455
Slide 47: 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 48: Thank you
cenomi THANK YOU