Majid Al Futtaim’s revenue rises by 13%
Times News Service
MUSCAT: Majid Al Futtaim on Tuesday announced its preliminary and unaudited operational and financial results for the first six months of the year, with overall group revenue rising by 13 per cent to Dh17.8 billion and Ebitda growing by 4 per cent to Dh2.1billion.
The group’s assets are valued at approximately Dh60.7 billion, with a net debt of around Dh11.1 billion. Majid Al Futtaim is the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia. Majid Al Futtaim’s topline financial growth has been largely driven by the group’s expansion and diversification efforts, alongside its ongoing focus on operational excellence across all operating companies and business units. Majid Al Futtaim continues its strategic investments to enhance customer experience and data and analytics capabilities, reinforcing its omnichannel offering across the portfolio, in addition to its significant investment in human capital. “Our financial results in the first half of the year demonstrate continued growth in the midst of challenging market conditions. Our resilience is strengthened by strategic investments that will future-proof our business and people for the changing world around us,” Alain Bejjani, Chief Executive Officer of Majid Al Futtaim Holding, said.
“We remain committed to delivering on our growth plans, keeping our financial discipline and maintaining careful risk management, while providing exceptional customer experiences,” he added.
During the first half of 2018, Majid Al Futtaim further expanded its portfolio through new market entries while continuing its growth in existing markets. In a milestone achievement, the company inaugurated its first VOX Cinemas multiplex theatre in Saudi Arabia following the lifting ofa 40-year ban on cinemas in the Kingdom. This comes as part of an ambitious plan to open 600 screens in Saudi over the coming five years. Majid Al Futtaim – Retail added 12 stores, growing its presence to 243 outlets across the Middle East, Africa and Asia. Carrefour signed an agreement with the Egyptian Ministry of Investment and International Cooperation to open up to 100 Carrefour stores in the country. In addition, Carrefour opened its largest distribution centre in the region which acts as a central receiving and quality control point, offering customers access to a wider range of products.
Majid Al Futtaim’s portfolio of malls across the region grew to 23 destinations with the opening of two new shopping malls, My City Centre Al Dhait in the UAE and My City Centre Sur in Oman. The hotel portfolio increased to 13 properties following the addition of Aloft City Centre Deira.
As part of its ongoing transformation efforts, Majid Al Futtaim continues to prioritise investment in advanced analytics, big data, and new technologies. In addition to hiring data engineers and scientists, the firm has trained hundreds of its workforce as “analytics translators” to turn vast amounts of data into actionable insights. These insights are helping Majid Al Futtaim improve the individual customer experience, make informed business decisions, as well as benefitting retailers, brands and other partners. Majid Al Futtaim – Properties Majid Al Futtaim – Properties registered revenue growth of 1 percent in the first six months of 2018, primarily driven by its shopping malls business, arriving at Dh2.3 billion. Ebitda also increased by one per cent to Dh1.5 billion, contributing almost 70 per cent of overall group Ebitda.
Majid Al Futtaim’s shopping malls welcomed 98 million visitors in the first half of the year, a 4 per cent increase as compared to the first half of 2017. Total shopping mall occupancy stood at 94 per cent, impacted by the ramp up of Mall of Egypt. Excluding Mall of Egypt, total occupancy of shopping malls remained strong at 96 percent. Majid Al Futtaim hotels reported an average occupancy of 75 per cent and continued to experience a decline in revenue per available room (RevPAR), in line with wider market trends.
In line with its group Sustainable Development Strategy, Majid Al Futtaim – Properties unveiled phase one of the Mall of the Emirates solar photovoltaic plant, delivered by its Enova business. This is the third solar photovoltaic plant at a Majid Al Futtaim mall, following the completion of the plants at City Centre Me’aisem and My City Centre Al Barsha. It will generate 3 GWh of clean energy, saving up to Dh1.4 million on energy costs per year.
Majid Al Futtaim – Retail
Majid Al Futtaim – Retail generated strong revenue growth and concluded the first six months of the year at Dh14.6 billion. Compared to the same period in 2017, revenue was up 15 per cent, while Ebitda increased by 11 per cent to Dh600 million.
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