Marka posts Dh2.14m net loss for the second quarter
Retailer aims to enter profitability in 2016
Dubai: The Dubai-listed retailer Marka posted a net loss of Dh2.14 million for the second quarter of 2015 from Dh8.37 million during the first quarter, it said in a statement on Thursday.
“It is significant for Marka that due to the phased consolidation of our 2015 acquisitions during the second quarter of this year we were able to recognise partial revenue from Marka’s operations for the first time,” Khalid Al Mheiri, Vice-Chairman and Managing Director of Marka, said in the statement.
He said that Marka is making “continued progress” on its acquisitions and launching new brands. He expects the company to enter profitability next year.
Marka completed two acquisitions last April, including Retailcorp, a subsidiary of Istithmar World, for Dh220 million, and a 60 per cent stake in Cheeky Monkeys Playland & Sweet Surprises for Dh30 million. It also bought restaurant chain Reem Al Bawadi for Dh315 million and acquired a 65 per cent stake in the UK-based online retailer Icons Shop for Dh15.3 million.
Outlets under management
More recently, it acquired the Middle East franchise operations of Morelli’s Gelato for Dh31 million.
Marka currently has 34 retail outlets under management. It plans to add more outlets, bringing the total to 64 in 2016, representing over 350,000 square feet of retail space.
Marka registered a net loss of Dh8.37 million during the first quarter of this year.
It raised Dh500 million in an initial public offering on the Dubai Financial Market (DFM) last year.
The company’s shares were flat at Dh1.30 on Thursday.
