Marka, the UAE's first retail-focused listed company, has reported a net loss of AED150 million ($40.8 million) for the full financial year of 2016.
The company, which has exclusive rights to manufacture and sell Real Madrid products in the Gulf region, reported total revenue of AED294 million, an increase of nearly 37 percentover the full year results for 2015.
Marka added that the net loss was mainly due to the depreciation of fixed assets, servicing debt and the impairment of the goodwill which arose on various acquisitions over the prior years.
Khaled Al Mheiri, vice-chairman and CEO of Marka, said: “2016 was an extremely challenging year for the region’s retail sector, and in particular during the fourth quarter of the year.
"Throughout 2016 we had in place a strict programme of cost control across the company which will continue into 2017, and our strategic focus will continue to be on building long-term value for our shareholders and building a world-class retail-focused company.”
Al Mheiri added: “Despite the results announced today, we are very happy with the outcome of the restructuring of our hospitality division, which is proving to be resilient in today’s challenging operating environment, and is in an extremely good position for growth in the future.
"2017 will be an exciting year for Marka - especially for its food and beverage brands - where we have further expansion planned including new outlets and franchise agreements across the Middle East.”
Marka currently operates 47 hospitality, fashion and beauty and sports outlets across the region.
Incorporated with a capital of AED500 million and headquartered in Dubai, Marka has partnered with leading global brands in the retail and hospitality sectors, pursuing a growth strategy focused on acquisitions, franchise agreements and unique home-grown retail concepts.