Marka announces further losses
Retailer has faced ‘unprecedented changes in the region’s retail market’, chairman says
Dubai: Marka, the Dubai Financial Market-listed retailer, has continued its run of poor financial performances, reporting a total loss for the second quarter of Dh125.97 million, the company announced on Tuesday.
The retailer attributed this to its corporate restructuring programme currently underway, whilst also noting a net operating loss of Dh35.9 million for the second quarter of 2017.
Khalid Jasem Bin Kalban, Marka chairman, said in a statement: “Over the past 12 months, Marka has faced unprecedented changes in the region’s retail markets, driven by changing consumer behaviour and geopolitical influences.”
Bin Kalban said that as a result, the company would be selling its stakes in “underperforming businesses.”
“Our focus moving forward,” he added, “is on the local and regional growth potential of our strong portfolio of F&B brands.”
For the second quarter, Marka reported total revenue of Dh25.48 million, a drop of 23 per cent from the company’s first-quarter revenue of Dh33.2 million.
Marka has aggressively expanded in recent years against a backdrop of a weakening consumer segment, exacerbated by a low oil price environment, and a drop in tourist spending.
Consequently, the retailer has failed to record a profitable quarter since it was listed on the stock market in 2014.
Marka 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.
