Cenomi Retail CEO blames Q3 2025 loss on one-off costs

Salim Fakhouri, Fawaz Abdulaziz Alhokair Co. (Cenomi Retail)

Fawaz Abdulaziz Alhokair Co.’s (Cenomi Retail) CEO Salim Fakhouri said the company’s performance in Q3 and the first nine months of 2025 reflected steady progress towards sustainable revenue growth.

In a statement on the nine-month financial results, he noted that despite the seasonal downturn in Q3, revenues remained strong, supported by resilient operations in Saudi Arabia, solid momentum in international markets, and robust digital sales across key brands.

Fakhouri underlined that the Saudi-listed company’s focus on operational discipline and cost-optimization efforts helped lift gross profit margins year to date.

He attributed Cenomi Retail’s net loss to non-recurring expenses, adding that the successful completion of the Al-Futtaim acquisition deal marked a key milestone in the former’s transformation path.

Beyond successfully refinancing Cenomi Retail’s outstanding obligations, this transaction strengthened the company’s financial stability, improved competitiveness and cash flows, and enabled sustainable growth potential over the next five years.

“Despite near-term challenges, we remain confident in our strategy and our path toward a full business transformation,” he added.

Cenomi Retail posted a net loss of SAR 210 million (after minority interest) for the first nine months of 2025, up from SAR 53.2 million a year earlier, with Q3 losses at SAR 124.5 million.

The company’s auditor highlighted a material going-concern uncertainty, citing a SAR 205 million loss for the nine months ended Sept. 30, 2025, accumulated losses of SAR 1.82 billion exceeding capital by SAR 670 million, current liabilities surpassing current assets by SAR 3.05 billion, and total liabilities exceeding total assets by SAR 1.21 billion.

“These factors, along with other items in Note 3-2 of the interim financial statements, indicate material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern,” the report stated.