By Parag Deulgaonkar
Alain Bejjani, Majid Al Futtaim Holding CEO, said the company is working on expansion plans in UAE, Saudi, Oman and Egypt
Dubai-based Majid Al Futtaim on Tuesday reported a 9 percent increase in group revenues to $8.14 billion (AED29.9bn) in 2016 compared to $7.43bn (AED27.3bn) in 2015.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 8 percent, reaching $1.11bn (AED4.1bn), driven by additional hypermarkets, supermarkets and family entertainment centres.
Alain Bejjani, Majid Al Futtaim Holding CEO, said the company will continue on its growth trajectory in 2017 with expansion in markets such as the UAE, Egypt, Oman, and Saudi Arabia.
“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," said Bejjani.
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 omni-channel experiences. We
will also further progress our expansion plans in markets including the UAE, Egypt,
Oman, and Saudi Arabia.”
Majid Al Futtaim Properties reported a 10 percent increase in revenue to $1.23bn (AED4.5bn). Its malls welcomed 175 million customers, registering an increase of 2 percent compared to 2015, with total occupancy levels in the malls remaining at 98 percent.
However, hotels reported an 8 percent decline in revenue per available room (RevPAR), though the company claimed it “outperformed the broader hospitality market which has dropped by 12 percent”.
Revenues for Majid Al Futtaim Retail jumped 8 percent year-on-year to $6.51bn (AED23.9bn), while EBITDA went up by 5 percent to $327m (AED1.2bn), aided by increased investment in new markets. The division launched 10 new Carrefour hypermarkets and 10 supermarkets last year, taking the number of outlet to over 170 in 15 countries across the Middle East, Africa and Asia.
Majid Al Futtaim Ventures’ registered strong growth in revenue, rising 29 percent to $517m (AED1.9bn), while EBITDA rose by 25 percent to $63.16m (AED232m), compared to 2015. The business vertical opened 11 new fashion stores and introduced new fashion brands in Saudi Arabia, Qatar and Kuwait.
In July 2016, the company listed a $300m (AED1.1bn) conventional bond tap on Nasdaq Dubai supporting Majid Al Futtaim’s ongoing expansion in retail, residential communities, leisure, health, and other sectors across the Middle East, Africa and Asia.
The company is on to open The Mall of Egypt in Q1 2017 and City Centre Almaza, the third City Centre in Egypt, in 2019.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.