Afg International Company · TADAWUL:4240
Afg International — Cenomi Retail — Investor Presentation (April 2025)
47 slides from Afg International's investor presentation, Apr 6, 2025
Slide 1: Cenomi Retail Investor Presentation
Cenomi Retail Investor Presentation As of 06 April 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 25 Financial Overview 33 Concluding Remarks 35 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 880 stores 360 Saudi retail stores Kazakhstan Georgia c. 367K sqm 271 F&B outlets Armenia Azerbaijan Uzbekistan Jordan Egypt 8 countries 249 KSA International Core ma
Slide 6: Why Cenomi Retail?
7 cenomi ed Why Cenomi Retail?
Slide 7: A leading fashion and F&B franchise retailer in KSA, representing top global brands
A leading fashion and F&B franchise retailer in KSA, representing top global brands KSA Q4’24: +14.3% YoY Saudi Arabia’s leading franchise retailer Representing Brand Champions across a well diversified portfolio No. 1 360 52 Fashion Franchise Stores Malls Apparel Retailer in KSA 22 20 226,652 Sport
Slide 8: Strong international presence in key emerging markets with a solid growth potential
Strong international presence in key emerging markets with a solid growth potential 8 249 54 31 118,130 Countries Stores Malls Brands GLA in SqM Diversified International footprint (percentage of Intl Tier-1 Champion Brands Revenues) Tier 1 Champion Kazakhstan Brands Georgia 1% 37% (Core Brands) Arm
Slide 9: E-commerce continues to be an area of focus for the company
E-commerce continues to be an area of focus for the company E-commerce presence …across monobrand websites Top brands with monobrand websites: 9% 6% Zara online sales Fashion brands as % of as % of total Zara total fashion revenues revenue 25% 20 Online F&B sales as % Monobrand of total F&B revenues
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: Cenomi Retail well positioned to seize opportunities in fashion and F&B market
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: The economy of the Kingdom of Saudi Arabia is 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: Effective execution of our strategy
Effective execution of our strategy Continuing our path to enhanced potential and profitability Key initiatives to drive growth in the domestic market Renovating high footfall stores and Targeting opening new openings in prime stores in prime Leveraging the malls locations use of data Seamless check
Slide 19: Renovation program has delivered an average ~70% sales increase in renovated stores
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 20: Multiple 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 21: International portfolio
International portfolio Strong sales momentum, with CIS region driving the Country # of Stores # of Brands # of Malls growth Strategically expanding operations in select global Armenia 27 15 4 markets such as Azerbaijan, Georgia, Armenia and Uzbekistan Azerbaijan 42 17 7 Exclusively customized
Slide 22: F&B Excellence: Our QSR strategy
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 23: 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, with SAR 210 17 closed stores in Q4’24 and Revenue per store increased Exiting USA 45 store openings, for a net 75% YoY i
Slide 24: Financial Overview
7 cenomi ed Financial Overview
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 101.9% YoY in Q4-24 to SAR EBITDA turned positive in Q4-24, to SAR 111 million, compared to 207 million, which re
Slide 30: 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% 5 6 290 5 0 -21 18.6% 4 12.2% 0.0% 7.4% 0.0% 250 -2.4% 0
Slide 31: 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 32: Concluding Remarks
7 cenomi ed Concluding Remarks
Slide 33: Key takeaways
Key takeaways Topline Profitability Financial position Brand Optimization International operations driving Reduction in net losses to SAR Balance sheet remains key area Continued progress, with capital revenue growth, particularly the 197 million in FY-24, with a of focus, with net debt gains of SAR
Slide 34: Appendix
7 cenomi ed App endix
Slide 35: Stock performance, shareholder composition and peer benchmarking
Stock performance, shareholder composition and peer benchmarking TTM P/E Ratio TTM P/B Ratio Market Cap (SAR mn)* TTM ROE (%) • ISIN Code: SA000A0LB2R6 (x) (x) 120 • Average 1-year daily volume JARIR 15,576.0 16.1 8.93 55.4 100 traded: 1.65M TASI Index • 1-year daily high volume: 10.97M 80 Retail In
Slide 36: KSA is home to an increasing population, whilst 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 37: 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 38: ~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 39: 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 40: Revenue diversification
Revenue diversification Revenue by division Revenue by channel Revenue by geography 8% 7% 7% 7% 6% 8% 6% 8% 8% 4% 3% 9% 5% 5% 5% 16% 21% 25% 21% 28% 26% 26% 31% 27% 33% 92% 94% 92% 92% 91% 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 41: 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 2,300 1200 1,125 1,400 700 1,531 859 1,200 600 1,800 Number of 1000 1,000 Number of 500 930 1,300 800 600 800 Stores 400 S
Slide 42: 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 43: 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 44: 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 45: Brand portfolio
Brand portfolio # KSA # CIS GLA BRAND COUNTRY DESCRIPTION STORES STORES (sqm k) Zara is one of the largest international fashion brands and places the customer at the heart of their unique business model. It is engaged in the 31 12 91 production, distribution, and sale of a wide range of jeans wear,
Slide 46: Brand portfolio – cont’d.
Brand portfolio – cont’d. BRAND COUNTRY DESCRIPTION (1) Aldo specializes in the creation of high-quality fashion footwear, leather goods and accessories Known for its trendy designs and affordable prices, Charles & Keith specializes in women’s footwear, handbags, and accessories Cosmetics brand that
Slide 47: THANK YOU
cenomi THANK YOU