PHOTO
Saudi Arabian franchise retailer Fawaz Abdulaziz Alhokair reported a “muted” performance for the third quarter of 2022, citing that domestic retail revenues were down due to inflationary pressures.
The company still posted a net profit of SAR23.3 million ($6.2 million) for the quarter, up by 11.48% from SAR20.9 million in the same period last year. This was mainly driven by an improvement in the company’s “international retail” and food and beverage segments.
Overall sales/revenue edged up slightly to SAR3.078 billion from SAR3.062 billion a year ago. Saudi retail revenue, however, fell 2% year-on-year.
In a statement to the Saudi Stock Exchange (Tadawul), Alhokair said the overall performance was “muted” because there was a “slowdown in the domestic market”.
“[Domestic revenues were down] as a result of seasonality and inflationary pressures, which [were] impacting consumers’ purchasing power and discretionary spending,” Alhokair told the Saudi Stock Exchange (Tadawul).
“[However, this] was offset by the improvement in both international retail and F&B revenues,” Alhokair said.
The company holds franchise rights for several international brands.
In a separate statement, Ahmed Belbesy, Chief Financial Officer, maintained that the company has established a “firm base” and is confident in its ability to drive forward despite market challenges.
“We have successfully maintained a positive revenue trend, supported by our F&B and international segments, which continued to deliver solid results during this period. By persistently optimizing our operations, we will focus on delivering improvements in profitability and added value for our shareholders.”
(Reporting by Cleofe Maceda; editing by Daniel Luiz)
