Fawaz Abdulaziz Alhokair Co. Delivers Strong First Half Underpinned by Solid Operational and ongoing Strategic Delivery to Drive Profits and Sustainable Growth
• H1-FY22 top line grows 74.9% y-o-y to SAR 3.1 billion and exceeds pre-pandemic H1-FY20
• Second sustainably profitable quarter in a row with Q2-FY22 net profit of SAR 20.9 million
• Margins restored to pre-pandemic level with Q2-FY22 gross margin at 17.1% and EBITDA margin of 11.4%
• Strengthening of financial position through proposed SAR 1.0 billion rights issue
Riyadh, 11 November 2021: Fawaz Abdulaziz Alhokair Co. (“Alhokair” or the “Company”, 4240 on the Saudi Exchange), the leading franchise retailer in Saudi Arabia, today announced its results for the second quarter and first half of the year to 30 September 2021, reporting a positive Q2-FY22 top and bottom line rebound with revenue of SAR 1,361.3 million, surpassing pre-pandemic Q2-FY20 level, and a net profit of SAR 20.9 million marking two sequential quarters of profitability underpinned by the delivery on its operational upgrade strategy to support long term sustainable growth.
Marwan Moukarzel, Chief Executive Officer at Alhokair said:
“The delivery on our operational upgrade strategy is materializing, and we are pleased to have delivered a profitable first half supported by a significant recovery in our top-line, with sales figures and margins returning to pre-pandemic levels as further Covid-19 related restrictions lifted. From this base, we are confident that we will deliver a profitable full year performance.
Overall, we are pleased with the progress we are making on all strategic pillars. We are on track to launch Alo Yoga and Flying Tiger during the second half of the year followed by Fnac Darty in FY23 while we continue to calibrate our portfolio by exiting 7 brands during the quarter. Pursuing new lifestyle brands acquisitions that better fit our diversification strategy is key and we are pleased to announce the acquisition of two new franchise deals in F&B with an additional QSR master franchise agreement in KSA with over 200 stores currently being in advanced stages
On the digital front, the momentum is picking up with 36 brands successfully migrated to Vogacloset and the launch of a new category, fragrance, further diversifying our brand offering on the platform. Our online presence across all geographies is also expanding with 19 monobrands platforms now live across Saudi Arabia and internationally.
Our goal to become the leading lifestyle retail destination in the Kingdom and in key strategic growth markets is clearly in sight, particularly in light of the proposed rights issue which represents a key milestone in our transformation journey. We are confident that we are on the right path to generate sustainable long-term value for our customers, investors, brand partners, and other stakeholders.”
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