Majid Al Futtaim group revenue rose 8 percent to AED 32.2 billion ($8.7 billion) in 2017, according to financial results released by the company on Wednesday.
The group's earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 1 percent to AED 4.2 billion ($1.14 billion), with the company attributing the slower EDBITA growth to a change in business mix across the portfolio, with the food grocery retail sector growing at a faster rate than the higher margin properties businesses.
At constant FX rates, overall group revenue would have grown by 14 percent and EDITDA by 5 percent, a difference which the company attributes to the Egyptian Pound devaluation which occurred in Q4 2016.
The results show that the company had total assets valued at AED 59.4 billion ($16.1 billion) and a net debt of AED 10.4 billion ($2.8 billion).
“Majid Al Futtaim’s diverse businesses and the markets in which we operate are experiencing rapid change and new innovations,” Majid Al Futtaim CEO Alain Bejjani said. “At the same time, our region continues to face volatility, our competition is becoming global and the needs of our customers continue to evolve.
“Despite these challenges, we have delivered a solid performance as a result of a clear growth strategy, with unparalleled customer experiences and talent capability-building at its core,” he added. “These pillars, along with our focus to become as prominent digitally as we are physically, will continue to drive our resilience and competitiveness.”
Majid Al Futtaim Properties registered 3 percent revenue growth to end the year at AED 4.6 billion ($1.2 billion), while EBITDA increased by 3 percent to AED 2.9 billion ($789.5 million), almost 69 percent of the group’s total EBITDA.
Majid Al Futtaim retail, for its part, finished the year at AED 25.9 billion ($7.05 billion), an 8 percent increase from 2016. EBITDA declined 1.6 percent to AED 1.2 billion ($326.7 million).
Lastly, Majid Al Futtaim – Ventures revenue rose 14 percent in 2017 to AED 2.1 billion ($571.7 million), with a 3 percent EBITDA decline to AED 258 million ($70.2 million).
Majid Al Futtaim is set to open three new shopping malls in 2018, including My City Centre Al Dhait – which opened in January – as well as City Centre Sohar and My City Centre Sur in Oman.
The company is also continuing work on a number of other shopping centres around the region, including Mall of Oman, My City Centre Masdar, and Mall of Saudi in Riyadh.
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