27/01/2015 14:13 AST
UAE-based Majid Al Futtaim, the leading shopping mall, retail and leisure pioneer across Mena, has reported total revenues of Dh25 billion ($6.8 billion) in 2014, marking a growth of 11 per cent over the previous year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) from recurring operations grew by 10per cent year-on-year to reach Dh3.6 billion ($980 million).
The company continues to maintain a strong balance sheet with total assets valued at more than Dh45 billion ($12.25 billion) and a net debt of around Dh8 billion ($2.18 billion). Both Fitch Ratings and Standard & Poor’s reaffirmed the company’s investment-grade rating of BBB, with a stable outlook during the year.
Iyad Malas, chief executive officer at Majid Al Futtaim – Holding, said: “Driven by our vision to create ‘great moments for everyone, every day’, the company’s ongoing modernisation, financial strength, and operational expansion have delivered strong financial performance and positive long-term impact to the region’s emerging markets.”
“Our rebrand united our companies under one umbrella corporate brand identity and vision, to provide synergy and stronger brand equity in all of our markets. This was an important exercise that has helped us position ourselves as pioneers in retail, shopping, leisure and entertainment and to achieve our ambition of doubling the size of the business in the next five years,” he added.
Commenting on the company’s future expansion, Malas said, “We will continue expanding our geographical footprint across Mena, bringing innovative new experiences to new populations, with a strong focus on Egypt and Saudi Arabia. This is in addition to strengthening our assets and competitive position in our home market of the UAE.”
Business unit performance
Properties, which develops, owns and manages the company’s shopping malls, hotels and mixed-use communities, increased footfall during the past year at its 13 consolidated shopping malls by 6per cent to 167 million consumers.
Revenue increased by 8 per cent to Dh4 billion ($1.08 billion) and EBITDA rose by 7 per cent to Dh2.4 billion ($653 million, contributing around 66 per cent of the group’s overall EBITDA.
Properties’ projects under construction and overall development pipeline are progressing strongly; the first phase of a new shopping mall at Dubai International Media Production Zone is due to open in 2015, and the Mall of Egypt in Cairo and Hilton Garden Inn, the company’s 10th hotel in Dubai, are expected to open in 2016.
Retail holds exclusive rights to the Carrefour franchise in 38 markets across the Middle East, Africa and Central Asia, and currently operates in 12 countries. It continued to offer convenience to consumers by opening 19 new Carrefour stores and creating around 1,700 jobs in 2014. Revenue increased by 11 per cent to Dh21 billion ($5.7 billion) and EBITDA rose by 16 per cent to Dh1.1 billion ($299 million), contributing around 32per cent of the group’s EBITDA.
Ventures, a diverse group of fast growing companies, achieved strong operational growth in 2014 with revenue increasing by 21 per cent to Dh1 billion ($272 million)and EBITDA for the year increasing by 26 per cent to Dh160 million ($43.5 million).
Trade Arabia
Please wait...
