By Staff writer
Retail firm posts $2.28m net loss for three months to Dec 31; says will turn profitable this year
Dubai retail firm Marka has reaffirmed its target of turning its first net profit this year after announcing a net loss of AED8.38 million ($2.28 million) for the fourth quarter of 2015.
The company, billed as the first public joint stock retail operator in the UAE, listed on the Dubai Financial Market (DFM) in September 2014, raising AED500 million.
Marka currently operates 46 stores with over 1,100 employees across the organisation.
It said in a statement that the Q4 results reflect the company's continued progress on expanding its operations and income derived from its 2015 acquisitions, delivering AED87.16 million in total revenue for the period and AED3.88 million EBITDA on an adjusted basis.
At the same time, acquisition costs of AED7.22 million and other expenses such as depreciation and interest expenses were recognised, resulting in a net loss of AED8.38 million reported for Q4 2015.
Khaled Almheiri, vice chairman and managing director of Marka said: "With numerous acquisitions completed in 2015 and more in the pipeline for 2016, Marka continues to make significant progress on our business plan.
"We are pleased to report on our strongest quarterly results for the company to date, as the company turns operationally profitable in Q4. Despite the global economic slowdown and its repercussions on the regional retail sector our outlook for 2016 remains positive, and we look forward to Marka becoming profitable in 2016."
In 2015, Marka acquired the sports group Retailcorp UAE from Istithmar World, along with the leading children's edutainment chain Cheeky Monkeys, the world's largest e-retailer of football memorabilia, ICONS, the award winning restaurant group Reem Al Bawadi and the Middle East operations of UK-based Morelli's Gelato.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
I sincerely doubt that this profitability will come true in the current climate.