Dubai-listed Marka posts Dh18.7m Q2 loss; plans 19 new outlets

Dubai-listed retail firm Marka said it posted Dh18.72 million loss for the second quarter of 2016 despite increase in revenues.

A statement issued by the company said it recorded total revenues of Dh89.5 million in Q2 2016, an increase of 18.2 per cent as compared to the previous quarter.

However, net operating loss for Q2 2016 was Dh3.83 million.

Khaled Almheiri Vice-Chairman and Managing Director of Marka, said: “Marka has been extremely busy during the second quarter of 2016, launching the world’s first Harper’s Bazaar Café in Dubai Design District (d3) in partnership with Hearst Magazines International, and completing franchise agreements for Reem Al Bawadi restaurants in Kuwait, Bahrain, KSA and Lahore, Pakistan. On behalf of the board of directors, I am extremely pleased on the progress the company is making on our business plan to build a portfolio of exciting and profitable hospitality and fashion/beauty brands. Our focus continues to be on building for future growth and delivering long-term value for our shareholders.”

Almheiri said: “Today’s strong Q2 results have been achieved against a backdrop of a challenging retail economy and a slow retail month during the Holy Month of Ramadan. With a focus on investing for the company’s future, we have 19 new outlets planned for opening in 2016 - including in the UAE four Reem Al Bawadi restaurants and three Cheeky Monkeys Playland & Sweet Surprises outlets. Our efforts are seeing fruition in building profitable trading platforms for 2017 and beyond.”

As part of its other regional expansion activities, Marka recently opened its first Reem Al Bawadi restaurant in Bahrain, and earlier announced plans to launch nine franchised outlets of Cheeky Monkeys in Saudi Arabia over the next five years. More recently, the company launched its loyalty rewards program in partnership with Air Miles Middle East, and opened its home-grown Italian street-food concept Vicolo in Dubai Design District (d3).

Marka currently operates over 50 outlets across its portfolio of hospitality, sports and fashion/beauty brands.

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