Logo of Cenomi Retail
Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) identified 26 non-strategic brands as part of the sales program, which was approved by the board of directors, the company said in a statement on Tadawul.
The company appointed an advisor to manage the divestment process.
The program aims to build Cenomi Retail’s position as a leader in all its operating categories, while focussing on the champion brands that occupy the first or second position in their respective segments.
In addition, the sales program will support the evolution of the brand portfolio and facilitate the continued focus on bringing the most coveted brands to the Kingdom to meet consumer needs and support retail growth across Saudi Arabia.
The brands earmarked for disposal will have an expected revenue impact of nearly SAR 288 million, with an uplift in the profitability of SAR 25 million accruing as the divestment program is completed.
With increasing focus on its food and beverage business, Cenomi Retail furthered its commitment in this area through the divestment of the non-strategic Azal restaurant chain as well as the sale of Shawarma Almuhalhl, all for SAR 25 million,
The Saudi-listed firm is eyeing expansion of the Subway brand with the completion of the acquisition of 30 Subway stores across the Kingdom by adding the directly operated stores to its sub-franchisor store footprint.
The strategic growth in the food and beverage sector will be boosted by the opening of 17 Subway and 15 Cinnabon additional stores in 2023, the statement noted.
“We have made a number of well-considered transactions that fully support the ambitious transformation journey that we are taking Cenomi Retail on”, Interim CEO, Mohamad Mourad stated.
This includes a stronger focus on key areas of growth, such as F&B, and the company’s partnership to bring Subway to the Kingdom is a clear example of this in action.
“We are firmly focused on being the retail brand partner of choice as well as the number one retailer for consumers in the Kingdom,” Mourad added.
Cenomi Retail will continue to identify and work with brands that align with its strategic goals, represent a diversified mix of sectors and support the country’s own ongoing transformation.
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