Majid Al Futtaim, a leading shopping mall, retail and leisure pioneer across the Middle East and North Africa (Mena), today reported a revenue growth of 11 per cent to Dh15.2 billion ($4.13 billion) in the first half of this year, compared to Dh13.7 billion ($3.73 billion) in H1 2015.

The preliminary unaudited financial results showed that the company's EBITDA increased by 7 per cent, reaching Dh1.9 billion (H1 2015: Dh1.8 billion).

The company continues to maintain a strong balance sheet with total assets valued at Dh52 billion and a net debt of around Dh10 billion, it said.
 
Alain Bejjani, chief executive officer of Majid Al Futtaim Holding, said: “We have delivered another sustained period of growth during the first half of 2016 by continuing to raise the bar when it comes to customer experience, while expanding our geographical footprint. For the first time, we have entered into sub-Saharan Africa and Kazakhstan through Carrefour and have expanded our leisure, entertainment and fashion businesses across markets.
 
"Our financial results during the first half once again show the resilience of our business model despite softening economic conditions. Going forward, we will press ahead with our expansion plans, while developing our business in existing and new markets when the right opportunities are identified and with a continued commitment to our prudent financial and risk management approach. This approach will not only position our company for further growth in the future, but will ensure we continue to support economic development across the Mena region,” he said.  
 
Operating Company Performance
 
Majid Al Futtaim Properties: Majid Al Futtaim Properties reported an increase in revenue of 11 per cent to Dh2.2 billion for the first half of 2016, while EBITDA rose by 12 per cent to Dh1.4 billion. Occupancy across all shopping malls remained strong at 98 per cenet. Majid Al Futtaim’s comparable hotels recorded occupancy rates of 77 per cent and experienced a decline in revenue per available room (RevPAR) of about 11 per cent versus the first half of 2015, despite outperforming the broader hospitality market which dropped by about 13 per cent for the same period.

In April 2016, the Aspen Chalets at the Kempinski Mall of the Emirates were opened to the public and in June construction work commenced on the Aloft Dubai City Centre Deira, which is expected to be completed in 2018, the company said.
 
Majid Al Futtaim Retail: The company launched 11 new stores, strengthening its portfolio to more than 160 outlets in 15 countries across the Middle East, Africa and Central Asia. Overall revenues increased by 9 per cent year-on-year to Dh12.3 billion, while EBITDA rose by 2 per cent to Dh582 million. This was driven primarily by entry into new markets, including the opening of its first Carrefour hypermarkets in Kenya and Kazakhstan, as well as additional store openings in existing markets.
 
Majid Al Futtaim Ventures: The company’s diverse portfolio of cinemas, leisure and entertainment, fashion, healthcare, consumer finance, food and beverage, and facility and energy management businesses reported strong financial performance, with overall revenues increasing by 43 per cent to Dh870 million. EBITDA for the year-to-date was at Dh56 million. Cinemas opened nine new screens, expanded VOX Theatre by Rhodes and opened its first outdoor cinema concept. In leisure and entertainment, one new Magic Planet and one new Lego store were opened.
 
Expansion plans
 "In response to the opportunities that we have identified across the region, we continue to progress with a series of new developments which will enhance our offering and deliver even more great moments for everyone, every day. We plan to open our second My City Centre neighbourhood retail concept in Al Barsha, Dubai and Mall of Egypt, the company’s flagship project in Egypt, in the second half of the year. In addition, Majid Al Futtaim Retail plans to expand our Carrefour franchise presence across our geographical footprint with the opening of 15 additional stores by the end of 2016,” added Bejjani.
 
Majid Al Futtaim is also progressing with its recently announced long term investment plans in the UAE, Saudi Arabia Egypt and Oman. These include new shopping mall developments in Dubai, Abu Dhabi, Riyadh, Cairo, and Muscat, as well as hotels and mixed-use communities.
 
Financing
The company continues to maintain a very strong financial and liquidity position covering its net financing needs of the next two years through its cash and available committed lines, he said.
 
In July 2016, the company raised $300 million with a tap issue on its existing 2024 bonds, extending the average life of the company’s debt portfolio and further improving its balanced debt maturity profile.
 
Standard & Poor’s and Fitch have reaffirmed the company’s credit rating at BBB with a stable outlook during the year, reiterating its credit strengths such as quality of assets, strong corporate governance and prudent financial management. - TradeArabia News service