Dubai retailer Marka announces Q2 profit amid restructuring

Trading of Marka shares remains suspended until September
Dubai retailer Marka announces Q2 profit amid restructuring
Marka Group CEO Benoit Lamonerie. (ITP Images)
By Bernd Debusmann Jr
Wed 15 Aug 2018 11:40 AM

Retail operator Marka reported a total profit of AED 2.8 million in Q2 2018 - compared from an operational loss of AED 48.6 million in the same time period in 2017 – as the company continues with its restructuring plan, it announced on Wednesday. 

The results mark the second consecutive operationally profitable quarter for the company. 

“The positive results of this quarter and for 2018 so far reflect the progress the company is making on its restructuring programme, in light of these challenges over the past two years,” said Marka chairman Khaled bin Kalban.  

“The efforts of the Marka management team have put the company in a stronger position ahead of the capital restructuring that has been proposed for later this year and will instill confidence in the company’s future, for the shareholders,” he added. 

In July, Marka announced that trading of its share will be suspended at least through September 4, the company said in a statement filed to the Dubai Financial Market (DFM). 

Marka shares have been suspended from trading since late April, when in a general assembly Marka shareholders agreed to postpone discussions regarding a turing plan under another meeting, in September.

“The focus of Marka’s team is on building a lean, agile and profitable business supported by a performance-driven culture,” Marka Group CEO Benoit Lamonerie.

“This commitment is now yielding positive results, as demonstrated by our second consecutive operationally profitable quarter.” 

In 2017, Lamonerie replaced Nick Peel, who resigned in 2016 after failing to make Marka profitable, which he said would occur by Q4 2015.

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