DUBAI
Marka announced Dh27.8 million first quarter losses in its financial results for 2017 released on Thursday.
The a Dubai-based retail operator’s gross profit dropped by nearly Dh10 million, from Dh24.5 million in the first quarter of 2016, to Dh13.2 million in the same period of this year.
Marka, the UAE’s first listed retail company, has reported a loss of Dh88 million for 2016, despite the company’s vice-chairman and managing director, Khalid Al Muhairi, assuring investors at the end of 2015 that the company intended to become profitable last year.
Failing to record a profitable quarter since it was listed on the stock market in 2014, Marka saw an increase in revenue of over 35 per cent in 2016.
In a statement posted on the Dubai Financial Market website (DFM), Marka posted a decline in revenue of -23.1 per cent, a drop from Dh43.2 million in the first quarter of 2016, to Dh33.2 million in 2017.
Marka has aggressively expanded in recent years against a backdrop of a weakening consumer segment, exacerbated by a low oil price environment, job losses and the drop in tourist spending.
The company’s shareholders recently approved the board’s plan to set up an authorised capital of Dh1 billion, whilst also approving the company’s plan to sell its shares in Cheeky Monkeys, a nursery school.
