Dubai firm continues to maintain strong balance sheet with total assets at Dh60.4B
Leading retail and leisure conglomerate Majid Al Futtaim reported on Wednesday an 8 per cent growth in revenue to Dh34.6 billion and a 9 per cent increase in earnings to Dh 4.6 billion for 2018.
In a statement, the Dubai-based company said it continued to maintain a strong balance sheet with total assets valued at Dh60.4 billion and a net debt of around Dh12.6 billion. The company said its growth was driven by the expansion and diversification efforts across various geographies.
Alain Bejjani, chief executive officer of Majid Al Futtaim Holding, said despite the macroeconomic challenges that affected consumer sentiment, 2018 has been a year of growth for our company.
“Our strategy to diversify our offering and geographical presence, as well as our commitment to customer centricity and technology investments has yielded great results.”
Majid Al Futtaim Properties registered 1 per cent revenue growth to end the year at Dh4.6 billion with Ebitda increasing by 2 per cent to Dh3 billion, contributing almost 65 per cent of overall group gross profit. Revenue from shopping malls increased by 3 per cent and the growth was attributed to lease renewals at higher rates and the impact of opening Mall of Egypt.
Majid Al Futtaim’s shopping malls welcomed 192 million customers during the year, a four per cent increase, as compared to 2017. Total shopping mall occupancy stood at 95 per cent.
Majid Al Futtaim Properties celebrated the opening of My City Centre Al Dhait in Ras Al Khaimah, its first investment into the emirate’s fast-growing community, and My City Centre Sur, Majid Al Futtaim’s first community mall in Oman. In addition, the company’s hotel portfolio grew to 13 hotels with the launch of Aloft City Centre Deira in Dubai bringing residents and visitors a one-of-a-kind movie-themed suites experience.
The group’s hotels experienced a decline in revenue per available room (RevPAR) due to current market conditions and reported average occupancy of 75 per cent, said the statement.
Majid Al Futtaim Retail generated strong revenue growth and finished the year at Dh28 billion, an eight per cent increase compared to 2017, driven by the addition of new stores. Ebitda increased by 16 per cent to Dh1.4 billion, largely attributable to cost optimisation initiatives and higher sales in Egypt, Saudi Arabia, Kuwait and Kenya.
Majid Al Futtaim Ventures’ revenue increased by 15 per cent in 2018 to Dh 2.4 billion. The diverse portfolio of cinemas, leisure and entertainment, fashion, consumer finance, food and beverage and facility and energy management reported an increase in Ebitda of 24 per cent to Dh319 million, driven by cinemas and growth from new sites.
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