Saudi-based Fawaz Abdulaziz Alhokair Co. announced its results for the full year ended 31 March 2022 (FY22), reporting revenues of SAR 1,387 million for the final quarter, a 22% growth year-on-year (y-o-y), with annual revenues of SAR 5,915 million recording a 40% increase from the previous year.
The strong top-line performance was predominantly driven by the recovery in both domestic and international retail markets with a strong improvement in consumer sentiment translating into higher in-store foot traffic, despite the marginal impact of the Omicron variant in December. F&B revenues continued to grow but were hampered by capacity and other Covid-19 related restrictions which persisted throughout the year. Overall, the gompany reported a net profit of SAR 38 million for FY22, compared to a net loss of SAR 1,109 million in FY21, with the increase driven by the growth in revenues, expansion in trading margins, absence of one-off inventory provisions recorded in FY21, partially offset by a one-off, non-cash impairment charge of SAR 71 million related to the goodwill arising from the acquisition of NESK Group in 2012. Adjusted net profit, excluding the impairment charge, is SAR 109 million.
“Alhokair has successfully navigated a challenging year to generate topline growth of 40% and a strong underlying profitability. The robust results are supported by the trading activity returning to pre-pandemic levels, the successful execution on the operational upgrade strategy and the strength of our teams across the business. We entered the new year on a strong footing, ready to sustain our path to recovery and build on our industry-leading position,” said Mohamad Mourad, Interim Chief Executive Officer at Alhokair.
“The optimisation of our brand portfolio is paying off, and we were pleased to successfully launch and onboard great brands this year, whilst the rationalisation of our store network is approaching normalisation. Our investments in key international operations have done well with the CIS countries, Egypt and Jordan being key contributors to the performance,” he added.
Alhokair recorded revenues of SAR 1,387 million in Q4-FY22, up by 22% from SAR 1,132 million booked in Q4-FY21. Meanwhile, full-year revenue increased 40% y-o-y to SAR 5,915 million, in line with guidance. The strong growth in the top-line was primarily driven by Alhokair’s ongoing focus on portfolio optimization and increasing revenue per SQM, supported by the market’s return to normalcy as pandemic-related restrictions continued to be lifted across the globe, in addition to a general improvement in business activity and sentiment. This translated into enhanced performances across the board, with a marked growth in Saudi and international retail revenues, as well as F&B.
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