Al Meera Consumer Goods Q P S C : Annual Report 2023

Al Meera Annual Report | 2023

"In the Name of Allah Most Gracious Most Merciful."

Your Favourite Neighbourhood Retailer

1

Al Meera Annual Report | 2023				Al Meera Annual Report | 2023

His Highness.	His Highness.
Sheikh Hamad Bin Khalifa Al Thani	Sheikh Tamim Bin Hamad Al Thani
The Father Amir	Amir of the State of Qatar

2

Your Favourite Neighbourhood Retailer

Your Favourite Neighbourhood Retailer

3

Al Meera Annual Report | 2023

CONTENT

About Al Meera	6
Board Members & Board of Directors	10
Reports
Chairman's Message	14
Chief Executive Officer's Message	16
Corporate Governance Report	18
Financial Highlights	44
Independent Auditor's Report	46
Consolidated Financial Statements	53

Your Favourite Neighbourhood Retailer

5

Al Meera Annual Report | 2023

01

ABOUT

AL MEERA

6

Your Favourite Neighbourhood Retailer

Your Favourite Neighbourhood Retailer

7

Al Meera Annual Report | 2023

About us

Founded in 2005, Al Meera Consumer Goods Company (Q.P.S.C.) has set its sights on becoming the premier retail destination in Qatar, dedicated to providing unparalleled shopping experiences. With an unwavering commitment, we have prioritized delivering excellence through top-tier products and services at competitive prices, all while remaining responsive to the evolving needs of our valued patrons.

At Al Meera, excellence is non-negotiable. Our stores uphold the highest benchmarks in quality and service, showcasing a curated selection of fresh, both locally sourced and imported, goods alongside everyday essentials, all offered at exceptional value. Continuously adapting to the dynamic preferences of our diverse clientele, we endeavor to uphold our mission of being Qatar's preferred neighborhood retailer.

Today, Al Meera boasts a network of over 68 hypermarkets, supermarkets, and convenience stores, underpinned by a dedicated workforce that places customer satisfaction above all else. Our ongoing investments in store enhancements, expanded product offerings, employee development initiatives, and network expansion reflect our unwavering commitment to elevating the shopping experience for all.

Central to our enduring success are the foundational pillars of our culture and values, which remain ingrained in every facet of our operations. These principles serve as the cornerstone of our identity, guiding us toward continued excellence and customer-centric innovation.

Vision

"The trusted retailer of choice."

Mission

"Serving customers' daily needs conveniently."

Al Meera Annual Report | 2023

Corporate information and principal activities

Al Meera is listed in the Qatar Stock Exchange with issued capital of 200,000,000 shares at nominal value of QAR 1.00 per share.

The Group is organised into the following three operating segments:

• Retail operations which operates various hypermarkets, supermarkets and convenience stores across the State of Qatar and the Sultanate of Oman.
• Mall management, which comprises leasing of vacant shops and spaces in Al Meera community malls.
• Investment segment, which comprises equity and funds held as investment.

The Group has more than 60 stores operating throughout the State of Qatar and 6 stores in the Sultanate of Oman with consolidated net selling area of more than 100,000 sqm.

8

Your Favourite Neighbourhood Retailer

Your Favourite Neighbourhood Retailer

9

Al Meera Annual Report | 2023

02

BOARD MEMBERS

• BOARD OF DIRECTORS REPORT

10 Your Favourite Neighbourhood Retailer

Your Favourite Neighbourhood Retailer 11

Al Meera Annual Report | 2023

BOARD OF DIRECTORS

Al Meera Consumer Goods Company Q.P.S.C.

			Al Meera Annual Report | 2023
Board of Directors

H.E. Abdulla Abdulaziz Abdullah Turki Al-Subaie

Chairman of the Board of Directors

Mr. Ali Hilal Ali Omran

Al- Kuwari

Vice-Chairman of the Board of Directors

Prof. Dr. Khalid Ibrahim Al- Sulaiti

Member of the Board of Directors

H.E. Sheikh/ Fahad bin Falah bin Jassim Al Thani

Member of the Board of Directors

Mr. Ahmed Abdullah Mohammed Al-Khulaifi

Member of the Board of Directors

Mr. Mohammad Abdulla Al Mustafawi Al Hashemi

Member of the Board of Directors

Mr. Hetmi Ali Khalifa Al Hitmi

Member of the Board of Directors

12 Your Favourite Neighbourhood Retailer

Your Favourite Neighbourhood Retailer 13

Al Meera Annual Report | 2023
	Al Meera Consumer Goods Company Q.P.S.C.		Chairman's Message

CHAIRMAN'S MESSAGE

Al Meera Annual Report | 2023

H.E. Abdulla Abdulaziz Abdullah Turki Al-Subaie Chairman of the Board of Directors

In the Name of Allah. Most Gracious. Most Merciful

Dear Shareholders.

On behalf of the esteemed Members of the Board of Directors, I am delighted to present to you this comprehensive report, offering insights into the company's financial performance and overall progress over the past year.

In respect to the company's financial achievements, Al Meera Consumer Goods Company (Q.P.S.C) showcased robust results for the fiscal year ending on December 31, 2023. Our total sales surpassed 2.8 billion, with a gross profit of QAR 548.9 million and earnings of QR 0.88 per share.

Al Meera's steadfast commitment to excellence has solidified its position as a leader in the local market. Key factors contributing to this success include our agile responsiveness to customer needs, the establishment of secure retail environments meeting international standards, implementation of a flexible operating model, and a prudent investment strategy.

Our key role in facilitating a seamless experience for residents has been reinforced this year as we continue our expansion. A few milestones include the opening of a new branch in the remote area of Al Kaaban, which comes as part of Al Meera's corporate social responsibility strategy to ensure the easy access of essential goods in every community in Qatar, along with the opening of the much-anticipated first fully autonomous and checkout-free Al Meera Smart store, the first technologically advanced and unmanned store in Qatar, and the region offering customers exclusive access to a smooth and cashier-less shopping experience.

Al Meera was a Platinum Sponsor and participated in the Expo Doha 2023, marking its continued commitment to supporting large-scale national events, as seen during the FIFA World Cup Qatar 2022. Al Meera's presence at the Expo, which was under the theme "Green Desert, Better Environment", highlighted its role in supporting community and local initiatives, and showcased its dedication to making a positive impact on the public and environment by engaging in, and promoting, eco-friendly and sustainable practices.

Our achievements would not be possible without wise leadership and support, and as such I take this opportunity, on behalf of myself and the members of the Board of Directors and employees of Al Meera Consumer Goods Company, to express my highest appreciation and gratitude to His Highness the Amir of the State Sheikh Tamim bin Hamad Al Thani for his vision for the prosperity of the State of Qatar, and to

His Excellency Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani, Prime Minister and Minister of Foreign Affairs, for his continuous support and guidance; praying Allah to direct their steps for all that involves the elevation and development of the State of Qatar.

Finally, on behalf of the Board of Directors, I extend sincere thanks for the continuous efforts and dedication of all employees of Al Meera Company to the growth and enhancement of the company, and to our esteemed shareholders, your trust and confidence serve as the cornerstone of our endeavors, inspiring us to pursue our goals, aspirations, and strategic initiatives with utmost dedication.

Thank you.

Abdulla Abdulaziz Abdullah Turki Al-Subaie Chairman of the Board of Directors

14 Your Favourite Neighbourhood Retailer

Your Favourite Neighbourhood Retailer 15

Al Meera Annual Report | 2023						Al Meera Annual Report | 2023
	Al Meera Consumer Goods Company Q.P.S.C.	CEO'S Message

CHIEF EXECUTIVE OFFICER'S MESSAGE

Mr. Yousef Ali Al Obaidan

Chief Executive Officer

In the Name of Allah. Most Gracious. Most Merciful

Dear Shareholders.

I am honored to address you once more on behalf of Al Meera's Board of Directors. As we reflect on the challenges and achievements of the past year, I am immensely grateful for your continuous support and trust, which have been instrumental in our journey toward sustained success in a dynamic economic environment.

In 2023, Al Meera solidified its status as Qatar's leading national retailer despite a highly competitive market. We achieved robust financial results, with consolidated sales totalling QAR 2.8 billion, gross profit reaching QAR 548.9 million, and rental income amounting to QAR 85.7 million. Net profit attributable to shareholders reached QAR 181.1 million, and our earnings per share were at QAR 0.88.

This year marked significant milestones in our corporate social responsibility strategy, such as the opening of a new branch in the remote area of Al Kaaban, which aims to ensure the easy access of essential goods in every community in Qatar.

Our social responsibility also extended beyond Qatar as Al Meera invested significant time and resources to support national humanitarian aid efforts in response to the ongoing crisis in Gaza alongside the devastating earthquakes in Turkey and Syria.

Additionally we launched Al Meera Smart, Qatar's first fully autonomous and checkout-free shopping experience that provides enhanced convenience for our customers and has positioned Al Meera at the forefront of retail technology. By reducing wait times and streamlining the shopping process, we are setting new standards in customer service and operational efficiency.

Our strategic technological advancements were also significantly bolstered through our partnership with SAP SE. By implementing SAP's S/4HANA system on Microsoft Azure, we have enhanced our operational efficiency and customer experience. This digital transformation has facilitated better inventory management, streamlined business processes, and improved data analytics capabilities, enabling us to make informed decisions swiftly and maintain our competitive edge in the market.

Our commitment to sustainability was prominently displayed during our participation in, and sponsorship of, the Expo Doha 2023, where we hosted a pavilion focused on eco-friendly practices. This event was a platform to showcase our initiatives such as waste reduction, recycling programs, and community cleanup activities, all designed to promote sustainable living and minimize our environmental footprint. Our efforts in promoting reusable bags, recycling plastic and aluminum, and engaging in community cleanups highlight our dedication to not just corporate responsibility but also to making a positive impact on the environment.

As we look to the future, Al Meera is committed to significantly enhancing the customer shopping experience and expanding our retail footprint across Qatar. Our strategic plans include major renovations for key branches to uplift the customer shopping at Al Meera and the opening of our flagship branch in Um Al Seneem area that showcases the new look and feel of Al Meera and offers a large variety of food and non- food products, competitive prices and an exceptional customer experience to further solidify our presence in the nation.

Additionally, we are excited to launch the first Smart Carts in Qatar which will allow customers to log in, scan items, and add them to the cart, eliminating the need for traditional checkout lines. The screen will also showcase the best deals and promotions and seamlessly connect to Meera Rewards, enabling customers to shop and save and providing an exceptional shopping experience. As we continue our journey, we aim to maintain our leadership in the retail sector and reinforce our position as 'Your Favourite Neighbourhood Retailer'. We are dedicated to making every customer interaction with Al Meera seamless, convenient, and satisfying through continuous improvement and innovation. This commitment drives our efforts to meet the evolving needs of our customers and communities, ensuring a fulfilling year ahead.

I would like to express my sincere thanks to the Chairman and members of the Board of Directors of Al Meera for their continuous support and cooperation, which have contributed immensely to the numerous achievements the company recorded during the year. I also express my profound gratitude and appreciation to the shareholders of Al Meera and all our partners for the unwavering trust in us.

Finally, I also share my appreciation to all Al Meera staff for their dedication and hard work in leading, executing, and accomplishing the company's strategy with unrivalled hard work and dexterity. I praise the teams for their continued commitment to the mission and vision of Al Meera and to achieving the plans and aspirations set by our shareholders and loyal customers.

Together, we will continue to navigate the complexities of the retail landscape and strive for greater achievements.

Thank you.

Yousef Ali Al Obaidan

Chief Executive Officer

16 Your Favourite Neighbourhood Retailer

Your Favourite Neighbourhood Retailer 17