MAF seeks acquisitions as H1 revenue up 4% to Dh15 billion

dubai - The conglomerate recently acquired Retail Arabia in a landmark deal

Majid Al Futtaim, a leading Dubai-based malls and retail operator, reported on Monday a four per cent overall jump in group revenue to Dh15.7 billion during the first six months of 2017.

The conglomerate, which recently acquired Retail Arabia in a landmark deal estimated to be over $500 million, said it continues to maintain a strong balance sheet with total assets valued at around Dh56.1 billion and a net debt of around Dh9.6 billion. In the first half, the group reported an Ebitda Dh2 billion, up four per cent.

Alain Bejjani, CEO of Majid Al Futtaim Holding, said the company demonstrated strength and resilience against a backdrop of regional economic challenges.

The company said its acquisition of Retail Arabia, the franchise owner of Geant in the UAE, Bahrain and Kuwait, helped cement Carrefour's position as the largest grocery retailer in the region. It said it would continue to pursue opportunistic acquisitions in line with its strategic and financial approach.

Majid Al Futtaim also invested in Fetchr, a 'last mile delivery' start-up. Fetchr-powered hands-free shopping services are already in operation at the Mall of the Emirates and allows customers to drop off their purchases at designated points around the mall and collect them later or have them delivered directly to their home.

In the first quarter of 2017, the company issued a $500 million corporate hybrid to fund its inorganic expansion plan.

In the first half, MAF Properties continued its expansion, reporting an increase in revenue of four per cent to Dh2.3 billion, while Ebitda rose by five per cent to Dh1.5 billion, contributing about 72 per cent of the group's Ebitda.

MAF Properties is progressing well on its expansion plans with 13 projects across Saudi Arabia, Oman, the UAE, Lebanon and Egypt.

Over the coming months, the company plans to open the Mall of Oman, City Centre Sohar and My City Centre Sur in Oman, City Centre Al Zahia, My City Centre Al Dhait and My City Centre Masdar in the UAE, City Centre Almaza in Egypt, as well as City Centre Ishbiliyah and Mall of Saudi in Riyadh, Saudi Arabia. In the first half, MAF Group launched five new Carrefour hypermarkets and nine supermarkets, strengthening its presence to more than 210 outlets in 15 countries across the Middle East, Africa and Asia.

- issacjohn@khaleejtimes.com