- Sultan unveils new 5-year disciplined expansion strategy involving 25 properties in Kuwait, Jordan, Oman, and Bahrain
- Over 20,000 square meters of retail development space in prime residential and commercial locations to be launched in Kuwait
- Strong focus on maximum returns on capital deployed and shareholder returns
Kuwait, April 4th, 2022: The Sultan Center Group (Sultan), Kuwait’s leading grocery food retailer, today announced the company’s FY2021 earnings and a 5-year expansion plan spanning across multiple countries and store categories. The company reported full-year 2021 earnings of 131.44 fils per share, a 3,316% increase from the previous year driven by strong operational results and non-recurring investment gains. Sultan reported KD 207 million in revenue for the year, and a net profit of KD 36.98 million for the year.
FY2021 Results Highlights:
- Revenue: KD 207.93 million
- EBITDA: KD 18.20 million
- Net Profit: KD 36.98 million, up 3,316%
- Earnings Per Share: 131.44 fils, up 3,316%
Balance Sheet Highlights as of Dec 31, 2021:
- Current liabilities: KD 94.1 million, improvement of 30%
- Total liabilities: KD 239.8 million, improvement of 5%
- Total assets: KD 315.2 million, improvement of 6.5%
- Total equity: KD 75.7 million, up 67%
Sultan Chief Executive Officer Khadija Oubala said, “Our earnings for the year take into account a one-time non-recurring investment gain. Excluding this gain, our operational results are in line with management expectations for the year, considering the rise in inflation, commodities, and the rising costs of logistics that we began to visibly see in early 2021. Compared to 2019, which was the last normal business year prior to the pandemic, our operational results have improved, thanks to our internal cost and efficiency enhancement initiatives, our upgraded offering, and our continued investments in enhancing the customer experience at our locations.”
Sultan also announced today a new expansion strategy, involving multiple projects that are currently underway that introduce flagship concepts, providing a unique experience that is tailored to the discerning customer both in Kuwait and the region.
Commenting on the new strategy, Oubala said, “In 2017 we launched our turn-around plan that successfully introduced a world-class corporate governance structure, a leaner business model, stronger supplier relationships, and an omni-channel approach to our business. Today, we are thrilled to announce the launch of Sultan’s new disciplined and robust expansion strategy with a focus on maximum returns on capital deployed and shareholder returns. We are embarking on expansions in our online and offline offering in Kuwait first and foremost by adding more than 20,000 square meters in commercial space through our 3 differentiated store concepts. From trendy offerings that deliver convenience, to ensuring a diversified product offering for customers to choose from. Serving both our loyal base who have been with us for decades to inviting the new generation to come and create memories with us.
Regionally, we will be rolling out new flagships and bolstering our market position in those markets.”
Oubala added, “A cornerstone of our strategy is an unwavering commitment to operational efficiency and excellence, providing unrivaled customer experience, and a product range that caters to the changing demographics and profiles of our customers. The strategy is currently deployed with over 25 strategic initiatives already launched in Kuwait and regionally. These initiatives include major renovations and construction projects that introduce Sultan’s new customer shopping experience across all store lines (flagships, supermarkets, and convenience stores). As well as new store locations in new demographic clusters in south of Kuwait, and an expansion of our convenience store network following the success of recent launches. We look forward to providing more updates to our shareholders in the coming quarters.”
Sultan’s Turn-around Plan
Launched in 2017, Sultan’s turn-around plan aimed to refocus the company on its core retail business by exiting non-core assets and non-performing activities on the one-hand, and on the other hand focusing on enhancing its core retail business. The plan had three main objectives: 1. Exiting non-core activities (successfully completed in 2019), 2. Bolstering the balance sheet and restructuring debt (successfully completed in Q3 2021), and 3. Grow retail business (currently in progress and on schedule).
The Sultan Center (Sultan) for Food Products KSCP operates supermarkets in Kuwait. Its subsidiaries also operate supermarkets in Jordan, Oman, and Bahrain. It is the largest independent, publicly traded retailer listed on Boursa Kuwait. Sultan currently operates 66 stores in the Middle East. In Kuwait, Sultan’s store network is strategically positioned around Kuwait, offering a range of high-quality products to serve all types of customers.
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