Cenomi Retail operations ‘unaffected’ by tariffs: CEO

It is not possible to assess the direct impact of customs duties on Cenomi Retail Co.’s business operations, said CEO Salim Fakhouri, adding that the impact will be extremely limited.

Tariffs on the countries where the company operates — namely Saudi Arabia, Azerbaijan, Georgia, and Uzbekistan — stands at 10%, he added in an interview with Al Arabiya.

The company's future performance is expected to remain stable and sustainable, thanks to its diversified brand portfolio as well as positive outcomes from enhanced operational efficiency and the implementation of a strategy that has led to sales growth and cost synergies, he said.

The company opened seven new branches in Uzbekistan and seven in Azerbaijan, contributing to a 37.6% increase in annual revenues in Azerbaijan and a 24% increase in Georgia. Revenues in Uzbekistan amounted to approximately SAR 132 million.

Additionally, the company inaugurated 93 new stores last year — 41 retail stores and 52 food and beverage outlets — while closing 558 stores as part of its brand optimization and store network revamping strategy, resulting in a net reduction of 465 stores, primarily within Saudi Arabia.

By the end of 2024, the company’s net debt stood at approximately SAR 1.6 billion, down 31.6% from SAR 2.3 billion at the end of the previous year.

This improvement was fueled by the company’s active deleveraging strategy, which included a significant debt repayment of SAR 664 million during the period.