Cenomi Centers, the largest owner, operator and developer of shopping malls and complexes in Saudi Arabia, reported stellar performance with total revenues booking SR550.8 million ($146.9 million) for the three-month period ending Dec. 31, 2022, a 7.9 percent year-over-year increase from the SR510.6 million reported in Q3-21.
Strong top-line expansion translated into significant growth in the company’s gross profit, which reached SR462.5 million on a quarterly basis, a 9.2 percent year-over-year increase over Q3-21. Successful cost optimization measures led to a further expansion of Cenomi Centers’ gross profit margin, which increased to 84 percent for the period.
Despite increasing financial charges for the quarter, Cenomi Centers successfully expanded its bottom line by an exceptional 22.2 percent year-over-year in Q3-22, booking SR455.7 million. On a year-to-date basis, total revenues increased by 11.1 percent year-over-year to book SR1,687.5 million for 9M-22. The gross profit for the nine-month period also expanded to a record SR1,417.1 million, a 13.9 percent year-over-year increase. The net profit for the nine-month period grew 2.4 percent year-over-year to record SR804.7 million.
The strong financial performance was driven by robust and consistent improvements in the company’s operations across its portfolio. Cenomi Centers saw a return to strong visitor footfall, which increased 32.3 percent year-over-year, with 27.1 million visitors in Q3-22. On a nine-month basis, visitor footfall increased by 38.5 percent year-over-year to book 84.2 million for 9M-22. Like-for-like tenant occupancy rates reached a record 94.2 percent at the close of the period, against a 92.8 percent rate recorded at the close of the previous period (Q3-21) and marked Cenomi Centers’ successful post-COVID recovery.
The company also continued its non-core asset land sale program, completing its second transaction for SR644.5 million with the sale of its land in Riyadh’s Al-Raed District in December 2022, slated to be reflected in Cenomi’s financials once the registration process is complete and is currently classified as “assets held for sale” in the financial statements for Q3-22. This transaction now brings the total amount generated from land sales to date to approximately SR875 million, with an estimated SR1.15 billion still remaining to be sold over the coming period as part of the disposal of non-core assets program.
Alison Rehill-Erguven, CEO, Cenomi Centers, said: “Cenomi Centers has maintained a solid growth trajectory. We continue to surpass the pre-pandemic operational metrics as we see strong increases in visitor footfall, up by 32 percent year-on-year during Q3-2022 and 39 percent year-over-year on a year-to-date basis, and growing occupancy levels to reach 94.2 percent for the quarter. These milestones further underline our resilience and the growth momentum of our business.
“Our most significant transformation has been the evolution of our brand to Cenomi, in line with the full rebrand under the Cenomi Group and its subsidiaries. This alignment is consistent with our growth as a consumer-centric company, delivering next-generation retail and lifestyle experiences to the consumers of Saudi Arabia.”
