Majid Al Futtaim revenues jump 14% in first half

Majid Al Futtaim’s performance in the first half of the year is credited to growth across its three business segments retail, properties and ventures. — Supplied photo

The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) from recurring operations increased by 13 per cent to Dh1.8 billion, according to its preliminary and unaudited operational and financial results statement.

“The first half of 2014 displayed another period of robust growth for us and even more importantly it happened on the back of a strong 2013,” said Iyad Malas, chief executive officer of Majid Al Futtaim Holding.

Majid Al Futtaim’s performance in the first half of the year is credited to the growth across its three business segments, retail, properties and ventures.

Properties

The company witnessed its revenues increased by a strong 10 per cent to Dh1.9 billion and EBITDA rise by around 12 per cent to Dh1.2 billion. The company’s malls saw footfall of 83 million through the period, an increase of six per cent from 2013 first half levels, while revenue per available room at the company’s 11 hotels increased by 15 per cent from prior levels, with year-to-date occupancy rates of over 80 per cent.

Retail

The business unit that owns and operates the Carrefour franchise, saw sales up about 15 per cent year-on-year, to Dh10.5 billion in H1 2014. The business’s EBITDA rose by 21 per cent to Dh553 million. In the first half of 2014, Majid Al Futtaim Retail opened 12 new Carrefour stores, expanding its portfolio to 121 outlets in 12 countries across the Middle East, Central Asia and North Africa.

Ventures is a diverse group of companies that complement the core business via a leading presence in cinemas, leisure and entertainment, as well as businesses in financial services, fashion and healthcare.

In the first half of 2014, Ventures achieved strong operational growth with revenue increasing by 21 per cent to Dh506 million. EBITDA for the year was at Dh63 million, an increase of around 13 per cent driven by the investments made for future growth.

Expansion plans

The company says several large-scale projects are currently under construction in both existing and new markets. Majid Al Futtaim’s ongoing investment plan in Dubai is well under way, with the successful opening of the Mall of the Emirates’ Fashion District and commencement of phase two, which will see the mall expand by a gross leasable area of 25,000 square metres to include the introduction of a new major VOX Cinemas experience, fresh retail anchor stores as well as boutiques and a diversity of dining choices. Additionally, Majid Al Futtaim introduced ‘My City Centre’, a new brand of neighborhood retail concepts, with the first opening in Nasseriya, Sharjah.

The company also announced a new shopping mall in Dubai at International Media Production Zone and commenced construction on Hilton Garden Inn, Majid Al Futtaim 10th hotel in Dubai.

“We continue to make significant progress with growth in the retail and leisure markets across the region. We are continuing our organic expansion plans focusing on our commitment to create great moments for everyone everyday, with careful attention to quality, with responsibility to community and last but not least, prudent financial and risk management approach, which is typical of Majid Al Futtaim,” Malas concluded.

— abdulbasit@khaleejtimes.com