Marka shares at all-time low as retailer posts 11th consecutive loss

Marka, the Dubai retail and restaurant investment firm, posted its 11th consecutive quarterly loss yesterday, sending its shares to a all-time low, as a strategy overhaul announced earlier in the year has failed to pay dividends.

The Dubai-listed firm, whose brands in the UAE include Reem Al Bawadi and the UEFA Champions League Experience, said losses for the three months to the end of June widened to Dh126 million, compared with a Dh18.7m loss in the same period last year.

“Over the past 12 months, Marka has faced unprecedented changes in the region’s retail markets, driven by changing consumer behaviour and geopolitical influences,” said the company’s chairman Khaled bin Kalban.

Marka booked a Dh55m property and equipment impairment for the quarter, which it did not elaborate on, while the company’s general and administrative expenses more than doubled to Dh44.8m.

Revenues fell by about a third to Dh25.5m.

“Our focus moving forward is on the local and regional growth potential of our strong portfolio of F&B brands,” Mr bin Kalban said.

The retailer’s shares, which have never risen beyond their original 2014 listing price of Dh1 on the Dubai Financial Market, plunged 5.1 per cent yesterday to an all-time low of 66.5 fils.

In February Marka announced a restructuring programme saying it planned to reorganise its portfolio of brands and continue with “extensive cost-cutting” after missing its target of turning a profit after two-and-a-half years of trading.

During the past quarter the firm offloaded its 60 per cent stake in Dubai-based indoor play area operator Cheeky Monkeys & Sweet Surprises to Evolvence Knowledge Investments for Dh84m.

The company also announced the appointment of a new chief executive, Benoit Lamonerie, in late May, replacing former chief executive Nick Peel who resigned in December.

Marka was established as a greenfield company with the aim of helping small investors buy a slice of what, at the time, was a booming retail and dining industry.

The company embarked upon an aggressive expansion plan, growing rapidly into retail, food and beverage and children’s entertainment outlets, however its rapid expansion also took place as the economy slowed, disposable incomes fell, and a strong dollar impacted tourism.

Marka has faced unprecedented changes in the region’s retail markets that have been driven by changing consumer behaviour