Marka revenues rise to Dh84.08m in Q3

Dubai: The UAE-based retailer Marka saw revenue jump to Dh84.08 million in the third quarter of this year, from Dh57.6 million in the second quarter, according to a company statement on Thursday.

However, Marka posted a net loss of Dh14.72 million over the Dh2.14 million recorded in the second quarter because of the acquisitions it has made this year.

“Acquisition costs of Dh7.36 million and other expenses such as depreciation and interest expenses were recognised, resulting in a net loss of Dh14.72 million reported for the third quarter of 2015,” Marka said in the statement.

The company, which listed on the Dubai Financial Market (DFM) last year, also recorded Dh1.03 million in earnings before interest, tax, depreciation and amortisation (EBITDA) from July to September this year.

Khalid Al Muhairi, Vice-Chairman and Managing Director of Marka, said in the statement that the company’s outlook “is very strong and we are confident that Marka will be in a profit generating position during 2016.”

Marka has been focusing this year on growing through acquisitions and franchise agreements.

“We have made rapid progress on our strategy to develop a balanced, diversified retail portfolio that will generate value for our shareholders,” Almheiri said.

Marka currently manages 39 retail outlets and plans to operate 64 next year, bringing the total retail space it covers to more than 360,000 square feet.

Marka acquired restaurant chain Reem Al Bawadi in May this year for Dh315 million, and has since opened three outlets in Sharjah, Al Ain and Jeddah, Saudi Arabia, and confirmed additional locations in Ras Al Khaimah and Bahrain.

Earlier this year, Marka also completed two acquisitions, including Retailcorp, a subsidiary of Istithmar World, for Dh220 million, and a 60 per cent stake in Cheeky Monkeys Playland & Sweet Surprises for Dh30 million.

It acquired the Middle East franchise operations of Morelli’s Gelato for Dh31 million in July this year.

In the last quarter, Marka added three more fashion brands to its portfolio, including French jewellery brand, dinh van, ready-to-wear retailer Carven and plus-size brand City Chic. It plans to open Carven and dinh van stores in Dubai’s City Walk phase II, and three City Chic outlets before the end of this year.

Marka raised Dh500 million in an initial public offering on the DFM last year. The company’s shares edged up 0.10 per cent at Dh1.30 on Thursday.