• Revenues: decreased by 5.4% y-o-y to book SAR 1,613.4 million in Q2-23. This reduction was primarily attributed to the ongoing operational optimization program, which led to total net store closures of 76 stores in Q2 2023.

• An increase in gross profit, which grew by 21.4% y-o-y from SAR 271.1 million in Q2-22 to SAR 329.2 million in Q2-23. This increase can be attributed to a 10.5% decrease in the cost of revenue, primarily driven by an 8.5% y-o-y decrease in the cost of goods sold.

• Selling, General and Administrative Expenses (SG&A), increased slightly by 1.0% to reach SAR 130.7 million compared to SAR 129.5 million in Q2-22. The increase was driven by heightened marketing activities.

• An increase in other operating income which grew by 174.3% y-o-y to SAR 118.2 million in Q2-23, compared to SAR 43.1 million in the corresponding period last year. This increase was primarily driven by support received from landlords.

• An increase in revenues, which grew by 13.6% q-o-q to book SAR 1,613.4 million in Q2-23 from SAR 1,420.6 million in Q1-23, benefiting from a strong Eid and post Ramadan trading supported by a sales and marketing push and early discount period.

• An increase in other operating income, which grew by 96.4% q-o-q to book SAR 118.2 million in Q2-23 from SAR 60.2 million in Q1-23, as the company’s superior Brands continue to benefit from landlord support

• Revenues: slightly decreased by 1.9% y-o-y to book SAR 3,034.0 million in H1-23, the decrease was primarily driven the ongoing operational optimization program, which led to total net store closures of 171 stores in H1 2023.

• An increase in other operating income which grew by 91.0% y-o-y to SAR 178.4 million in H1-23, compared to SAR 93.4 million in the corresponding period last year. This increase was primarily driven by support received from landlords.

• An increase in gross profit, which grew by 15.4% y-o-y from SAR 421.4 million in H1-22 to SAR 486.1 million in H1-23. This increase can be attributed to a 4.6% decrease in the cost of revenue, primarily driven by a 18.4% and 9.0% y-o-y decrease in rent and salaries, respectively as the company continues to drive its cost optimization program.

• Selling, General and Administrative Expenses (SG&A), increased by 27.1% to reach SAR 271.4 million compared to SAR 213.5 million in H1-22. The increase was driven by a rise in staff costs, primarily due to end-of-service payments in Q1, along with increased marketing activities

The company finalized a comprehensive assessment of Right Of Use of Asset and Lease Liabilities under IFRS16 Standard completed by an external independent party resulting in an adjustment to opening balances as of January 1st 2022 which led to gain in Retained Earnings of SAR 56.5 million as of June 30th 2023.

Recent updates concerning FAS Labs.

Cenomi Retail made an announcement that FAS Labs has received the final approval from the Saudi Central Bank to license FAS Finance Company. The approval allows FAS Finance to offer consumer microfinance solutions through financial technology. Cenomi Retail ownership interest in FAS Finance is through its 50% stake in FAS Labs. It's important to note that "FAS Labs," a Limited Liability Company, is jointly owned by both Cenomi Retail and Cenomi Centers. The approval was granted on 25-07-2023.

Al-Mubarak Real Estate fund 2

On 18-07-2023, Cenomi Retail announced the termination and liquidation of Al-Mubarak Real Estate Fund 2, in which the company owns 33.33% of the total units. The fund's assets were sold for SAR 1,525,000,000, and a first tranche of SAR 360,000,000, equivalent to 60% of the investment units' nominal value, will be distributed. Cenomi Retail will receive SAR 120,000,000, 33.33% of the first tranche distribution, while the company's share in the fund's book value as of December 31, 2022, was SAR 217 million.