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Tue 17 Apr 2018 02:07 PM

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Struggling Dubai retailer eyes first profits after restructuring

Marka says it expects to be operationally profitable for the first time in Q1

Struggling Dubai retailer eyes first profits after restructuring

Marka, which has exclusive rights to manufacture and sell Real Madrid products in the Gulf region, said on Tuesday it expects to be operationally profitable for the first time in the first quarter of 2018.

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

But the company's chairman, Khaled Jassim Bin Kalban, said in a statement published by the Dubai Financial Market that the restructuring programme has started to show "beneficial impact".

He said the company expects to achieve operational profitability in Q1 against a loss of AED4.6 million in the previous quarter.

He said the results reflect progress made by the company over the past 12 months, meeting the changing demands of its customers.

He added: "Over the past 12 months, Marka has focused its efforts on streamlining its structure, exiting unprofitable businesses and making the company ready for growth.

"Today we are pleased to see the positive results this exercise has had, as achieving operational profitability is an important milestone. Marks is now ready to face the future with confidence."

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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