On 2026-08-11 16:07:06 (Saudi Time), AFG International Co.(4240.SA) (Cenomi Retail) announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026 (H1-26), Group sales/revenue increased 6.5% YoY to SAR 2,623.4 million from SAR 2,463.1 million in H1-25, driven by strong trading across the Inditex portfolio, KSA revenue growth of 4.5% YoY to SAR 1,710.0 million supported by disciplined commercial execution and Ramadan/Eid Al-Adha trading, and international revenue growth of 16.4% YoY to SAR 771.8 million led by sustained CIS region consumer demand, partially offset by a 13.3% YoY decline in F&B revenues to SAR 141.6 million due to softer trading and planned exit of non-core brands. Net loss attributable to shareholders widened 21.9% YoY to SAR 133.9 million in H1-26 from SAR 109.8 million in H1-25, as the modest 1.8% YoY gross profit improvement to SAR 852.7 million and a 90.1% YoY reduction in other operating expenses to SAR 8.4 million were more than offset by an 8.7% YoY increase in SG&A expenses to SAR 755.2 million (including SAR 55.0 million in impairment of non-financial assets and higher advertising, utilities and maintenance costs), a 52.6% YoY decline in other operating income to SAR 15.5 million reflecting the absence of a SAR 21.9 million capital gain recorded in Q1-25, and a 38.5% YoY increase in net finance costs to SAR 206.5 million driven by the Group's current financing and capital structure.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 7.8% to SAR 1,258.1 million in Q2-26 from SAR 1,365.2 million in Q1-26, primarily driven by a 19.6% QoQ drop in KSA revenues to SAR 762.2 million, as Q1-26 had benefited from stronger seasonal trading including end-of-season promotions and Ramadan; this was partially offset by a 21.9% QoQ increase in international revenues to SAR 423.9 million on continued CIS region strength. Net loss widened 52.5% QoQ to SAR 80.9 million from SAR 53.0 million, as the improvement in gross profit (SAR 396.0 million to SAR 456.6 million) was more than offset by a significant rise in SG&A expenses (SAR 350.6 million to SAR 404.5 million), driven largely by the recognition of SAR 55.0 million in impairment of non-financial assets and higher depreciation charges, alongside a slight increase in net finance costs to SAR 104.5 million from SAR 102.1 million.

Other Items

The external auditor issued an unmodified conclusion on the interim condensed consolidated financial statements for the six months ended 30 June 2026. No material risks, going concern uncertainties, or debt covenant breaches were flagged. Accumulated losses stood at SAR 2,394.4 million, representing 208.6% of capital. Total shareholders' equity (after deducting minority equity) was negative at SAR -1,736.6 million, compared to SAR -1,081.2 million in the same period of the prior year. Loss per share was SAR -1.17 for the current period versus SAR -0.96 in H1-25. Certain comparative figures were restated on account of prior period adjustments, with details provided in Note 25 to the interim condensed consolidated financial statements.

Original announcement:

https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=97553&anCat=1&cs=4240&locale=ar

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