Wednesday 17 October 2018

Alain Bejjani

Majid Al Futtaim H1 revenues hit $4.27bn

DUBAI, July 31, 2017

Majid Al Futtaim, a leading shopping mall, communities, retail and leisure pioneer, today announced continued financial growth throughout its business during the first six months of the year.

The overall group revenue expanded by 4 per cent to Dh15.7 billion ($4.27 billion) and EBITDA increased by 4 per cent to Dh2 billion ($544.51 million) during the period, the company said.

At constant FX rates, overall group revenue would have grown by 12 per cent and EBITDA by 9 per cent, it said. The difference can be largely attributed to the EGP devaluation that occurred in the last quarter of 2016. The company 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.

Alain Bejjani, chief executive officer of Majid Al Futtaim Holding, said: “Majid Al Futtaim continued demonstrating strength and resilience against a backdrop of regional economic challenges.

"We remain focused on our strategic direction, while anticipating market changes, working smarter, competing effectively and celebrating milestones.  Our aim is to build on our rich heritage, customer centricity and market knowledge by creating and developing a technology-driven business that will future-proof our organization, delivering greater value for our customers and stakeholders,” Bejjani added.

Majid Al Futtaim’s acquisition of Retail Arabia is a major milestone -- one that further cements Carrefour’s position as the largest grocery retailer in the region. Through both organic and inorganic growth, the company continues to pursue opportunistic acquisitions in line with its disciplined strategic and financial approach, it said.

Majid Al Futtaim invested in Fetchr, a last mile delivery start-up. Fetchr powered innovative ‘hands-free’ shopping services are already in operation at 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.

Majid Al Futtaim delivered new landmark experiences to customers in North Africa by opening Mall of Egypt, which is home to the first ski slope and snow park in Africa. In the UAE, the company introduced Orbi, a collaboration developed with SEGA and BBC Worldwide, to provide guests with new multi-sensory experiences at City Centre Mirdif.  

The company established the Majid Al Futtaim School of Analytics and Technology, as part of the Majid Al Futtaim Leadership Institute, to transform how employees understand, predict and respond to customer preferences and, in doing so, further enhance their ability to deliver unique and engaging experiences.

Majid Al Futtaim Properties: Majid Al Futtaim Properties continued its expansion during the first half of 2017, reporting an increase in revenue of 4 per cent to Dh2.3 billion, while EBITDA rose by 5 per cent to Dh1.5 billion, contributing about 72 per cent of the group’s EBITDA. At constant FX rates, revenue would have grown by 8 per cent and EBITDA by 7 per cent, it said.

During the year, the company welcomed 91 million customers, an 8 percent increase, as compared to the first half of 2016. Total occupancy of comparable shopping malls remained strong at 98 per cent (94 per cent including Mall of Egypt, which opened in March).

Construction commenced at City Centre Al Zahia in Sharjah, Mall of Oman and City Centre Sohar in Oman, and My City Centre Al Dhait in Ras Al Khaimah.

Majid Al Futtaim hotels reported average occupancy of 77 per cent and witnessed a slight decline in revenue per available room (RevPAR), yet continued to outperform the market, the group said.

Majid Al Futtaim Retail: In line with its growth strategy, Majid Al Futtaim acquired Retail Arabia, the franchise owner of Geant in UAE, Bahrain and Kuwait, and will rebrand its 29 stores under the Carrefour brand before the end of 2017. It also launched five new Carrefour hypermarkets and nine supermarkets in the first six months of the year, strengthening its presence to more than 210 outlets in 15 countries across the Middle East, Africa and Asia, taking into account the acquisition.

Overall revenues increased by 3 per cent year-on-year to Dh12.6 billion, while EBITDA dropped by 5 per cent to Dh553 million mainly due to the EGP devaluation.

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 reported strong financial performance, with overall revenues up 16 per cent to Dh1 billion (Dh1.5 billion including joint ventures and associates).

With entry into three new countries and the opening of 42 new screens, VOX Cinemas continued to cement its position as the region’s leading cinema chain and saw a 61 per cent increase in ticket admissions.

Continued Expansion
Majid Al Futtaim plans to continue to enrich the customer experience across its business. It is actively assessing potential investment opportunities with a focus on digital capabilities, technology and e-commerce. The company will also increase its focus on enabling seamless and effortless integration of its online and offline presence.

On the development side, Majid Al Futtaim Properties is progressing well on its balanced expansion plans with 13 projects across Saudi Arabia, Oman, the United Arab Emirates, Lebanon and Egypt. As part of its future pipeline, the company plans to open 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 United Arab Emirates; City Centre Almaza in Egypt; as well as City Centre Ishbiliyah and Mall of Saudi in Riyadh, Saudi Arabia.

Majid Al Futtaim is also continuing its phased development approach at its mixed-use communities including Al Zahia in Sharjah, Waterfront City in Beirut and Al Mouj in Muscat. The Aloft Hotel City Centre Deira, which is inspired by a cinematic theme will be open to the public in 2018. - TradeArabia News Service

Tags: Majid Al Futtaim | retail |

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