Afg International Company · TADAWUL:4240
Afg International — Cenomi Retail — Q1 2025 Earnings Presentation
34 slides from Afg International's earnings presentation, Mar 31, 2025
Slide 1: Cenomi Retail Earnings Presentation
Cenomi Retail Earnings Presentation For the quarter ended 31 March 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 Deputy Chief Financial Officer
Slide 4: Table of contents
Table of contents 05 At a Glance 09 Strategic and Operational Review 16 Financial Overview 27 Concluding Remarks 29 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 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 7: Financial highlights
Financial highlights SAR 1.3 BN SAR 953 MN Revenues KSA Retail Revenues 11.2% YOY 10.0% YOY SAR 116 MN SAR 301 MN EBITDA International Retail Revenues vs loss of SAR 4 MN 21.8% YOY SAR 1.8 MN SAR 111 MN Net Profit Online Sales vs loss of SAR 152 MN 21.8% YOY 7
Slide 8: Continued focus on 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 9: Strategic and Operational Review
Strategic and Operational Review 9
Slide 10: 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 11: 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 (c.1500 in 2023 reduced to almost half in Q1-25) ▪ Closing underperf
Slide 12: Translating strategy into operational results
Translating strategy into operational results Brand Rationalization Store Rationalization Operational Enhancement Market Focus Brand Focus ▪ 75 closed stores in Q1’25 ▪ KSA revenue per store ▪ Strategic retreat from and 3 store openings, for non-core markets to ▪ Strategic expansion of ▪ Divestment
Slide 13: 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 14: 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. Cinna Warmer, Bon Topping) to local tastes. ▪ Packaging and bakery upgrades helping lift ticket sizes without relying on aggressive discou
Slide 15: Financial Overview
7 cenomil ed Financial Overview
Slide 16: 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 17: 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 18: 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 19: Zara & Inditex witnessing growth during the period
Zara & Inditex witnessing growth during the period Fashion & F&B Revenues (SAR Million) +15.5% LFL +9.2% LFL -7.2% LFL 472 408 377 345 74 69 Zara Inditex F&B Q1'24 Q1'25 19
Slide 20: 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 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 21: 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 1,130 1,800 1,542 2,907 1,270 1,316 600 3,500 1,804 2,323 1,600 1000 3,000 1,400 500 1,897 Number of Number of 800 1,200 2,500 400 1,000 2,000 600 800 Stores 300 1,500 Stores Re
Slide 22: Revenue diversification
Revenue diversification Revenue by division Revenue by channel Revenue by geography 4% 4% 4% 3% 3% 7% 7% 7% 6% 6% 8% 6% 8% 8% 8% 17% 20% 22% 28% 21% 23% 29% 26% 31% 33% 92% 94% 92% 92% 92% 79% 77% 74% 72% 71% 67% 69% 67% 63% 60% 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 23: 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 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 24: 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% 5.3% 60 61 120 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 25: Inventory optimization leading to enhanced efficiency
Inventory optimization leading to enhanced efficiency Inventory efficiency ratios Inventory balance (SAR MN) ▪ 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 26: Concluding Remarks
7 cenomil ed Concluding Remarks
Slide 27: 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 28: Appendix
7 cenomil ed App endix
Slide 29: 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 30: 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 31: 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% +25% -2% -31% +5% +10% 668,185 613,957 Q1-24 Q1-25 +18% 559,135 72,634 69,363 +32% 473,258 357,298 26,822 27,195 23,199 23,998 181,738 15,592 12,477 3,819 3,760
Slide 32: 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 33: Presenters
Presenters Sarah Moussa Director of Investor Relations IR.retail@cenomi.com
Slide 34: Thank you
cenomi THANK YOU