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Mon 26 Mar 2018 01:55 PM

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Dubai retailer Marka posts $65m losses in 2017

Retailer, which is embarking on an ongoing cost control program, has failed to turn a profit since starting operations in 2014

Dubai retailer Marka posts $65m losses in 2017
Marka has exclusive rights to manufacture and sell Real Madrid products in the Gulf region. (Getty Images)

Marka, which has exclusive rights to manufacture and sell Real Madrid products in the Gulf region, has reported total revenue of AED99.6 million and a net loss of AED242.1 million ($65.8 million) for 2017.

The struggling retailer, which is embarking on an ongoing cost control program, has failed to turn a profit since being established in 2014.

The company said the results for 2017 reflect the progress made on the company’s restructuring programme and a challenging regional operating environment in which the company has been functioning.

Marka chairman, Khaled Jassim Bin Kalban, said: “Today, Marka is a very different company from what it was 12 months ago. Over the past year, the company has focused on exiting unprofitable businesses and building a leaner, more effective operational structure in order to grow our profitable business lines.”

He added: “I’m confident that with 2017 behind us and a clear focus on meeting the changing demands of our customers, the company is in a very strong position to develop value for its shareholders. The board of directors thanks Marka’s shareholders, employees, customers and partners for their continued support over the past year.”

Last October, at its General Assembly meeting, shareholders of the company approved the "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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Blaze The1st 2 years ago

For 3 years now I have said on this site that Marka will never turn a profit. So far so good. Their retail portfolio is very weak and miss targeted, rents too high and consumer sentiment very low with disposable incomes shrinking, since the advent of VAT and no salary increases for year. Net result - losses to continue.