Majid Al Futtaim revenue up 7% on development, sustainable growth

Majid Al Futtaim, a leading shopping mall, retail and leisure group, reported on Wednesday a seven per cent year-on-year jump in first-half revenue to Dh13.7 billion.
The group said in a statement that its Ebitda (earnings before interest, taxes, depreciation, and amortization) remained stable at Dh1.8 billion, "reflecting higher promotional activities, costs associated with new market entries, product mix impact and a softer market in the hospitality industry."
The group, which owns and operates of 17 shopping malls and 11 hotels in the Middle East and North Africa, however did not disclose net profit for the first half but said the results highlighted sustainable growth as company expanded its footprint in Dubai and invested for the future.
"This is a transformational year, two decades since the launch of City Centre Deira, and we are positioning the business for accelerated development and sustainable growth," said Alain Bejjani, chief executive officer of Majid Al Futtaim Holding, said in a statement.
He said on the back of a strong 2014 the group is pressing ahead with its strategy to drive ambitious expansion and growth plans unveiled in the first half of 2015.
"Building on our core competencies, we are also focused on ensuring robust internal systems are in place to enable us to cement and advance our leadership position in all of our markets, and export our operational excellence to new geographies," he added. "We are making investments in our human capital development with our new proprietary internal educational enterprise - The Majid Al Futtaim Leadership Institute, as well as continuing to lead the region on corporate governance and sustainability." The group's property business, which includes its mall and hotel assets, generated half-year revenue of Dh2 billion and Ebitda of Dh1.2 billion, which were flat year-on-year.
The malls attracted 85 million visitors in the first six months of 2015, up two per cent from a year earlier. Sales at the group's Carrefour operations rose seven per cent year-on-year to Dh11.2 billion and Ebitda increased three per cent to Dh563 million over the same period.
 

In the first half, Majid Al Futtaim Retail opened 15 new Carrefour stores, expanding its portfolio to 143 outlets in 13 countries across the Middle East, Central Asia and North Africa.
Majid Al Futtaim's ventures business, which includes its cinema, leisure and healthcare units, generated half-year revenue of Dh609 million, up 21 per cent.
The group said Dubai remains the core of its business as it expands its presence in Egypt, Saudi Arabia and Oman, in addition to looking to establish a foothold in Africa and Eurasia.
"Majid Al Futtaim's ongoing investments in Dubai continue with the investment of Dh267 million for phase one of the new City Centre Me'aisem. This will be the company's sixth City Centre in the UAE, located in the International Media Production Zone and is expected to open next month, it said.
- issacjohn@khaleejtimes.com

• Dubai