DUBAI
Majid Al Futtaim overall group revenue was up 9 per cent year-on-year to Dh29.9 billion for 2016, whilst its EBITDA (earnings before interest, taxes, depreciation, and amortisation), or the measure of its operating performance, was up 8 per cent to Dh4.1 billion, it said in a trading statement released on Tuesday.
The shopping mall, retail and leisure developer credited this resilient growth to the addition of new hypermarkets, supermarkets and family entertainment centres across the Middle East.
The total asset value of the group is estimated to be Dh53 billion, whilst its net debt is around Dh9.6 billion.
Majid Al Futtaim reported that it was on track with its development plans in Egypt, with the Mall of Egypt set to open in Q1 2017, and City Centre Almaza, the third City Centre in Egypt, due to open in 2019.
Building on the rapid expansion plan of its retail operations, the company also mentioned that it was looking to grow its presence in the Middle East, Africa and Central Asia this year.
Construction began on the 103,000 square metre (sqm) City Centre Almaza, Cairo, and Aloft Hotel, City Centre Deira, and work began on expansions at City Centre Ajman and City Centre Sharjah, according to the statement.
The group also opened My City Centre Al Barsha in 2016, whilst expanding the Carrefour network with 10 new supermarkets and 10 new hypermarkets, including the company’s first in Africa.
“Our company continues to deliver excellent results, demonstrating the strength of both our business model and our ability to capitalise on new opportunities, while navigating market challenges. This gives us great confidence that we can continue our growth trajectory in 2017, a year that will see us intensify the integration of our offline and online worlds in line with increasing demand for seamless omnichannel experiences. We will also further progress our expansion plans in markets including the UAE, Egypt, Oman, and Saudi Arabia,” Alain Bejjani, Chief Executive Officer of Majid Al Futtaim — Holding, said in a statement.
The group said its strongest performing operating company was Majid Al Futtaim Ventures, which includes the company’s portfolio of cinemas, food and beverage, and leisure and entertainment, reporting an increase of 29 per cent in overall revenues to Dh1.9 billion (Dh2.6 billion including joint ventures and associates).
Vox Cinemas increased its total number of screens to 242, making it the largest cinema operator in the Middle East and North Africa region.
Also noted in the report was that Standard & Poor’s and Fitch, both reaffirmed the company’s BBB credit rating, reiterating Majid Al Futtaim’s “credit strengths such as quality of assets, strong corporate governance and prudent financial management.”
