Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) Announces Its Financial Results for the Period Ending on 30 September 2025 (Nine Months)

• KSA retail revenues grew by 1.0% YoY to SAR 683.4 million, including a 13.6% increase in online revenue for ZARA & Inditex, in addition like-for-like sales for ZARA & Inditex brands which rose 1.1% in Q3-25.

• International retail revenues increased by 20.9% YoY to SAR 441.7 million, driven by strong performance in CIS markets and growing demand for Inditex brands. International Online revenues for ZARA & Inditex grew 53.6%, while international like-for-like sales for these brands increased by 19.0%.

• F&B segment revenues rose by 3.9% YoY to SAR 83.9 million, supported by strong like-for-like growth at Subway of 3.6% and improved online sales performance, particularly at Cinnabon +8.0% and Subway +191.3%.

• Online revenues were up 9.7% YoY to SAR 96.2 million, reflecting broad-based growth across both fashion and F&B segments.

• Gross profit increased by 4.0% YoY to SAR 132.2 million, despite margin pressure from end-of-season discounting.

• An increase in SG&A expenses, of 40.3% YoY to SAR 137.0 million, mainly due to higher professional fees to support transformation and refinancing plan including the shareholder loan agreement .

• A decrease in other operating income, which fell by 83.5 % YoY to SAR 11.7 million, reflecting the absence of a SAR 47 million non-recurring capital gain recognized in Q3-24 under the brand divestment program.

• Other operating expenses stood at SAR 16.6 million, compared to a credit balance of SAR 37.7 million (as a result of provisions reversal) in Q3-24, marking a normalization to typical expense levels.

• KSA retail revenues remained stable QoQ at SAR 683.4 million , with Zara and Inditex brands continuing to lead.

• International retail increased by 22.1% QoQ to SAR 441.7 million, supported by continued strength in CIS markets +23.6%.

• F&B segment revenue improved 0.5% QoQ to SAR 83.9 million, supported by online performance.

• Online revenue rose 14.0% QoQ, reflecting strong momentum in Inditex’s online channels.

• A decline in the gross profit of 30.1%, as Q3-25 recorded higher sales volumes but at lower margins due to end-of-season promotional activity.

• An increase in SG&A expenses from SAR 97.7 million to SAR 137.0 million, mainly due to higher professional fees to support transformation and refinancing plan including the shareholder loan agreement.

• A decline in other operating income, from SAR 26.4 million to SAR 11.7 million, primarily due to landlord support recorded in Q2 2025 higher than in Q3 2025.

• A decline in other operating expenses, from SAR 94.7 million to SAR 16.6 million, as the prior period included non-recurring impacts from a tax liability settlement and foreign currency losses.

• KSA retail revenues declined 1.6% YoY to SAR 2,319.9 million, whilst ZARA & Inditex brands recorded like-for-like growth of 0.5% and online sales growth of 27.4%.

• International retail revenue rose by 19.1% YoY to SAR 1,104.8 million, supported by strong demand in CIS markets (+23.7%), ZARA and Inditex brands continued to outperform, with like-for-like sales up 15.7% and online revenues increasing 42.6%.

• F&B segment revenue declined 1.4% YoY to SAR 247.3 million; however, online performance remained robust, with Subway up 260.5%, Cinnabon up 8.2%, and Subway’s like-for-like sales increasing 2.1%.

• Online revenues grew 13.9% YoY to SAR 292.4 million, driven by a 28.5% increase for ZARA and Inditex brands and 16.3% growth in the F&B segment.

• An Increase of 16.3 % in gross profit from SAR 429.1 million to SAR 499.2 million, supported by a 3.8% growth in group revenues and effective implementation of the cost optimization program.

• A decline of SG&A by 3.0% reflecting continued efficiency gains from the cost optimization measures and improved operational efficiencies.

• A 70.7% YoY decline in other operating income to SAR 75.4 million, primarily due to the absence of the SAR 211 million non-recurring capital gain recognized in 9M-24 under the brand divestment program.

• An increase in other operating expenses to SAR 126.4 million in 9M-25 from SAR 7.3 million in 9M-24, due to tax liability settlement and foreign exchange losses in 9M-25.

We draw attention to Note (3-2) of the accompanying interim condensed consolidated financial statements, which indicates that the Group incurred a loss of SAR 205 million for the period ended 30 September 2025. As of that date, the Group’s i) accumulated losses of SAR 1,817 million exceeded the Company’s share capital by SAR 670 million, ii) current liabilities exceeded its current assets by SAR 3,047 million, and iii) total liabilities exceeded its total assets by SAR 1,207 million. These events or conditions, along with other matters as set forth in details in Note (3-2) of the accompanying interim condensed consolidated financial statements, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter.