Majid Al Futtaim has announced its preliminary and unaudited operational and financial results for the first six months of the year, with overall group revenue rising by 13% to AED17.8 billion and EBITDA growing by 4% to AED2.1 billion. The group’s assets are valued at approximately AED60.7 billion, with a net debt of around AED11.1 billion.
Majid Al Futtaim’s top-line 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 & 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. We remain committed to delivering on our growth plans, keeping our financial discipline and maintaining careful risk management, while providing exceptional customer experiences,” says Alain Bejjani, CEO, Majid Al Futtaim – Holding.
Majid Al Futtaim – Properties registered revenue growth of 1% in the first six months of 2018, primarily driven by its shopping malls business, arriving at AED2.3 billion. Majid Al Futtaim’s shopping malls welcomed 98 million visitors in the first half of the year, a 4% increase as compared to the first half of 2017. Total shopping mall occupancy stood at 94%, impacted by the ramp up of Mall of Egypt. Excluding Mall of Egypt, total occupancy of shopping malls remained strong at 96%.
Majid Al Futtaim – Retail generated strong revenue growth and concluded the first six months of the year at AED14.6 billion. Compared to the same period in 2017, revenue was up 15%, while EBITDA increased by 11 percent to AED600 million. Both were substantially driven by the acquisition of Retail Arabia in 2017. Thanks to the group’s diversification efforts, significant growth was seen in Kenya and Egypt, with revenue increasing 143% and 22%, respectively.
Majid Al Futtaim – Ventures’ revenue increased by 13% in the first six months of the year to AED1.1 billion. The diverse portfolio of cinemas, leisure and entertainment, fashion, consumer finance, food and beverage and facility and energy management reported an EBITDA increase of 2% to AED118 million.
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 of a 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.
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