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Majid Al Futtaim posts 10% jump in revenues

Abdul Basit / 24 January 2012

DUBAI - Majid Al Futtaim Holding on Monday announced 10 per cent year-on-year increase in revenues and indicated expansion in both existing and new markets during 2012.

The leading shopping mall, retail and leisure pioneer across the Middle East and North Africa (MENA), said the company has strong liquidity and waiting for right time to go for Islamic or conventional bond.

Revenues reached Dh18.7 billion in 2011, at the same time its Earnings before Interest, Taxes Depreciation and Amortization (EBITDA) from recurring operations grew by 18 per cent year-on-year to reach over Dh2.7 billion, according to the company.

“Diversification across business segments and geographies has been a key driver in ensuring strong operating performance. In particular, strong performance in Dubai helped to offset any softness resulting from regional turmoil,” Majid Al Futtaim Holding chief executive officer Iyad Malas said.

Majid Al Futtaim Holding said strong performance in 2011 was driven by the robust operations of all of its three business units. Property unit’s revenues jumped by 21 per cent to Dh2.8 billion, retail’s revenues increased to Dh15.2 billion, and Ventures united achieved Dh1 billion revenues.

The company has embarked on a solid long-term growth plan that includes expansion in both existing and new markets. “We continue to focus on a prudent and sustainable growth strategy. Within the coming 12 months we will complete the construction of two shopping malls (Fujairah City Centre, UAE and Beirut City Centre, Lebanon), and expect to start construction in Cairo at our Mall of Egypt Project. We will also progress our strong development pipeline of new shopping malls. In addition, Majid Al Futtaim Retail expects to open around 15 new Carrefour hypermarkets and approximately 25 to 30 new supermarkets in 2012,” Malas said.

Majid Al Futtaim Holding has established a very strong financial position to support its existing businesses as well as its dynamic expansion plans. In 2011, it established a $2 billion Reg S EMTN programme, which was filed with the London Stock Exchange in June 2011. The company also set up a $1 billion sukuk programme in early January 2012.

“We are constantly looking into options to diversify our sources of long-term funding,” Malas said. “Having set up the EMTN and Sukuk programmes, we can now wait for the right market conditions and choose whether to issue a sukuk or a conventional bond.” he added.


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