Fawaz Abdulaziz Alhokair Company (Cenomi Retail) has identified 26 non-strategic brands under the company’s divestment program, the company said in a statement to the Saudi stock exchange.
The brands planned for disposal will have an expected revenue impact of SAR 288 million, leading to a higher accrued profit of SAR 25 million on completion of the divestment programme.
In addition, the company sold three brands under Azal restaurants and Shawarma Almuhalhl for SAR 25 million.
On the other hand, Cenomi Retail will focus on growing the Subway brand by acquiring 30 stores across the Kingdom and adding the directly operated stores to its sub-franchisor store footprint.
Moreover, the company will open 17 Subway and 15 Cinnabon stores this year.
Mohamad Mourad, interim CEO, Cenomi Retail, said: “We have made a number of well-considered transactions that fully support the ambitious transformation journey that we are taking Cenomi Retail on.
“This includes a stronger focus on key growth areas, such as F&B, and our partnership to bring Subway to the Kingdom is a clear example of this in action.”
He stated the company will continue to identify and work with brands that align with its strategic goals, representing a diversified mix of sectors and supporting the country’s ongoing transformation.
(Editing by Seban Scaria firstname.lastname@example.org)