AFG International Co. (Cenomi Retail) announces its Annual Financial results for the Period Ending on 31 December 2025 ( Twelve Months )

• KSA retail revenues grew by 6.7% YoY to SAR 882.4 million. Like-for-like sales grew 4.1% YoY.

• International retail revenues rose by 18.0% YoY to SAR 480.2 million, due to strong performance in CIS markets and growing demand for Inditex brands. The international portfolio delivered like-for-like growth of 21.0%.

• F&B segment revenues decreased by 1.6% YoY to SAR 75.9 million, reflecting impacts from portfolio optimization initiatives and a normalization in demand levels during the quarter.

• Online revenues increased 17.6% YoY to SAR 124.8 million, driven by strong momentum across KSA retail and international segments, which increased by 21.4% and 88.4%, respectively. At the Group level, Zara and Inditex online revenues rose by 19.3% YoY.

• A decrease in gross profit by 15.8% YoY to SAR 162.8 million, As sales increased due to year-end promotions, associated costs also rose. In addition, normal rent expenses increased in line with higher turnover rent, driven by stronger sales.

• An increase in SG&A expenses of 3.9 % YoY to SAR 123.8 million primarily due to higher advertising and promotional expenses in line with increased sales volumes.

• An increase in other operating income, from SAR 12.6 million to SAR 23.8 million, mainly related to discounts on rental payables.

• An increase in other operating expenses to SAR 65.6 million, compared to SAR 19.3 million in Q4-24, mainly driven by tax liability payment and assets write-offs.

• A goodwill impairment of SAR 120 million recognized during the quarter, compared to SAR 95.4 million in Q4-24.

• KSA retail revenues increased by 29.4% QoQ to SAR 882.4 million, with Zara and Inditex brands continuing to lead.

• International retail increased by 8.7% QoQ to SAR 480.2 million, supported by continued strength in CIS markets 9.4% growth QoQ.

• F&B segment revenue decreased by 9.5% QoQ to SAR 75.9 million, mainly reflecting the impact of portfolio optimization initiatives and a normalization in demand during the quarter.

• Online revenue rose 29.7% QoQ, showing a strong momentum in Zara and Inditex’s online channels, which grew by 41.1% QoQ on a group level, while total online KSA grew by 41.4% and total online International grew by 40.7%.

• A 84.7% increase in gross profit, reflecting higher sales across KSA and international, as Q3-25 recorded lower margins due to end-of-season promotional activity taking a longer period in Q3-25 than in Q4-25.

• A decrease in SG&A expenses from SAR 124.2 million to SAR 123.8 million, reflecting efficiency gains from cost optimization measures.

• A rise in other operating income from SAR 8.4 million to 23.8 million, mainly related to discounts on rental payables.

• An increase in other operating expenses, from SAR 14.3 million to SAR 65.6 million due to asset write-offs and tax liability payment.

• A goodwill impairment of SAR 120 million recognized during the quarter.

• KSA retail revenues increased 0.3% YoY to SAR 3,195.7 million. KSA like-for-like sales decreased by 1.8%, while ZARA & Inditex brands recorded like-for-like growth of 0.2%.

• International retail revenue rose by 18.8% YoY to SAR 1,585.0 million, international like-for-like sales were up 15.6%, supported by continuing growth in CIS markets and ZARA & Inditex momentum.

• F&B segment revenue declined 1.4% YoY to SAR 323.2 million. However, full-year online performance remained strong, with Subway growing by 162.3% and Cinnabon by 3.7%.

• Online revenues grew 15.1 % YoY to SAR 417.3 million, driven by a 25.1% increase for ZARA and Inditex brands at the group level and 9.4% growth in the F&B segment.

• An Increase of 2.5% in gross profit to SAR 579.6 million from SAR 565.6 million, supported by a 5.3% growth in group revenues and the effective implementation of cost optimization measures.

• A decline in SG&A expenses of 4.8%, reflecting efficiency gains from cost optimization measures.

• A 65.8% YoY decline in other operating income to SAR 88.1 million, primarily due to the absence of the SAR 211 million non-recurring capital gain recognized in FY-24 under the brand divestment program.

• An increase in other operating expenses to SAR 173.2 million from SAR 10.6 million, due to tax liability settlements, foreign exchange losses and asset write-offs.

• A goodwill impairment of SAR 120 million recognized during the year, compared to SAR 95.4 million in FY-24.

We draw attention to Note (3-2) of the accompanying consolidated financial statements, which indicates that the Group incurred a net loss of SR 497 million for the year ended 31 December 2025, and as of that date it recorded accumulated losses of SR 2,113 million. In addition, the Group’s current liabilities exceeded its current assets by SR 1,545 million as of 31 December 2025, and as of that date total liabilities exceeded total assets by SR 1,466 million. These events or conditions, along with other matters as set forth in details in Note (3-2) of the accompanying 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 opinion is not modified in respect of this matter.