Majid Al Futtaim H1 revenues up 14pc to $3.5bn
Dubai, July 23, 2014
Dubai-based Majid Al Futtaim (MAF) today reported a 14 percent increase in first-half revenues, citing growing earnings across its business units.
The firm, which owns and operates the Carrefour franchise in the Middle East, achieved Dh12.8 billion ($3.5 billion) revenues in the six months to June 30, it said in a 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 - Majid Al Futtaim Holding.
The company’s EBITDA (earnings before interest, taxes, depreciation and amortisation) from recurring operations increased 13 per cent to Dh1.8 billion.
Majid Al Futtaim’s performance in the first half is credited to the growth across its three business segments: Retail, Properties and Ventures, it said.
Properties, Mena’s leading diversified real estate and property services company, saw its revenue increase by a strong 10pc to Dh1.9 billion and EBITDA rise by around 12pc to Dh1.2 billion. The company’s malls saw footfall of 83 million through the period, an increase of 6pc from 2013 first half levels, while revenue per available room at the company’s 11 hotels increased by 15pc from prior levels, with year-to-date occupancy rates of over 80pc, it said.
Retail, the business unit that owns and operates the Carrefour franchise, saw sales up about 15pc year-on-year, to Dh10.5 billion in H1 2014. The business’s EBITDA rose by 21pc 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, Ventures achieved strong operational growth with revenue increasing by 21pc to Dh506 million. EBITDA for the period was at Dh63 million, an increase of around 13pc driven by the investments made for future growth.
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 2 which will see the mall expand by a gross leasable area of 25,000 sq m 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.
Malas said: “We continue to make significant progress with growth in the retail and leisure markets across the region. In the first half of 2014, we received official endorsement from Egypt's Government for our multi-billion Egyptian pound investment plan, we progressed on lucrative land banking opportunities in Saudi Arabia, and the first anniversary of Beirut City Centre was held under the patronage of President Michel Sleiman.
"While Dubai remains the core of our business, these cornerstones in Majid Al Futtaim's investment strategy in Egypt, Saudi Arabia and Lebanon underlines our confidence in these countries to become investment hubs capable of accommodating major commercial and touristic projects," he said.
"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,” he added. - TradeArabia News Service