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Tue 14 Nov 2017 01:26 PM

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Struggling Dubai retailer Marka says losses narrow in Q3

Company chairman says performance is result of ongoing cost control program

Struggling Dubai retailer Marka says losses narrow in Q3
Marka has exclusive rights to manufacture and sell Real Madrid products in the Gulf region. (Gonzalo Arroyo Moreno/Getty Images)

Marka, the first retail-focused company listed on the Dubai Financial Market, said on Tuesday that its net losses narrowed in the third quarter of 2017 compared to the previous quarter.

Marka, which has exclusive rights to manufacture and sell Real Madrid products in the Gulf region, reported total revenue of AED23 million, and a net loss of AED22 million.

This compared to a total revenue of AED25 million, and a net loss of AED126 million in the second quarter of 2017, the company said in a statement.

It added that the results "reflect the progress the company is making on its ongoing cost control program – with a reduction of 75 percent of its general expenses compared to Q2 – as well as strong operational changes that are moving the company towards long term financial improvements".

Marka chairman, Khaled Jassim Bin Kalban, added: “The company is maintaining a strict cost control program and making strong operations improvements. With the steady progresses made across all brands, we are in a better position to envisage the future with confidence.”

Last month, at its General Assembly meeting, shareholders of the company approved the its "continuity of operations".

In May, Marka announced a new CEO, Benoit Lamonerie, who replaced Nick Peel, who resigned last year after failing to turn a profit since Marka was established in 2014.

Peel had said that he would make Marka become profitable by the fourth quarter of 2015.

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