Higher finance costs weigh on Cenomi Retail earnings

Saudi Arabian franchiser Cenomi Retail recorded a loss in the first quarter of 2026 due to higher finance costs and the absence of a prior-year non-recurring divestment gain.

A net loss of SAR47.3 million ($13 million) in the quarter ending in March is in stark contrast to the SAR1.8 million net profit in the same period a year ago.

Revenue rose more than 2 percent year on year to SAR1.3 billion despite softer domestic trading conditions and the impact of regional geopolitical tensions, the company said in a statement to the Saudi stock exchange.

CEO Salim Fakhouri said electronics, beauty, sports, lifestyle and other fashion categories recorded 21 percent like-for-like growth on the year before.

International revenues grew by 15 percent annually to SAR348 million, he said, adding online revenue increased by 4 percent.

Like-for-like revenues from Inditex brands such as Zara declined 7 percent in Saudi Arabia amid regional tensions, but grew 20 percent internationally, Fakhouri said.

Cenomi Retail remains focused on selective expansion in high-potential locations, including Westfield Riyadh and Westfield Jeddah, the company said.

The management continues to expect profitability to improve progressively throughout 2026, supported by stronger store productivity, operational efficiencies and continued growth across the kingdom, international and digital channels, the statement said.

In July 2025 the founding shareholders of Cenomi Retail agreed to sell their 49.95 percent stake in the company to UAE-based Al-Futtaim in a private transaction. Al-Futtaim is the company’s largest shareholder.

Its shares were trading 1.6 percent lower at SAR15.09 on Monday afternoon. The price has fallen more than 21 percent so far this year.

Further reading:

• Cenomi Retail founders sell stake to Al-Futtaim
• Construction and retail strain propels Saudi bankruptcies
• War restricts Saudi growth but worse expected to come