Saudi retailer Fawaz Abdulaziz Alhokair Group returned to profit in the first quarter of its 2022 fiscal year on the back of higher revenue as the Arab world’s largest economy continues to recover from the effects of the coronavirus pandemic.
The company’s total profit for the three-month period to the end of June rose to 45.7 million Saudi riyals ($12.18m) compared with a loss of 535.6m riyals during the same period last year, the company said in a statement to the kingdom’s Tadawul stock exchange, where its shares are traded. Revenue during the period climbed 201 per cent to 1.7 billion riyals.
“We are pleased with the results achieved in the first quarter, as we returned to profitability following five consecutive quarters of net losses,” said Marwan Moukarzel, Alhokair chief executive. “Top-line recovery was significant, with sales figures returning to pre-pandemic levels as Covid-19-related restrictions lifted across markets, supported by Ramadan seasonal sales.”
Saudi Arabia’s economy is forecast to grow 2.4 per cent this year and 4.8 per cent in 2022 as the authorities support the economy with a range of stimulus measures, according to the International Monetary Fund.
“Good progress has been made on our operational upgrade strategy to drive business excellence and optimise our portfolio, while maintaining profitability as we become the leading lifestyle retail destination across the markets where we operate,” Mr Moukarzel, said.
“The onboarding of new brands including Fnac Darty in electronics, Alo Yoga in athleisure, and Flying Tiger in the variety space is also a top priority to drive our diversification journey.”
Alhokair operates more than 1,700 retail outlets in 12 countries. Its portfolio comprises more than 90 international and local brands in fashion, beauty, sports, multimedia, and food and beverage.
The company signed two separate franchise agreements with Danish retailer Flying Tiger Copenhagen and US-based yoga and athleisure brand Alo Yoga in May to expand its retail portfolio. It also signed a separate franchise deal with French retailer Fnac Darty in April.
Flying Tiger Copenhagen sells a range of products, including toys, accessories, stationery and gadgets while Los Angeles-based Alo Yoga sells exercise and yoga-related clothing.
