Dubai retail giant posts 8% rise in revenue to $9.4bn

Majid Al Futtaim says its shopping malls welcomed 192 million customers during the year, a 4% increase
Dubai retail giant posts 8% rise in revenue to $9.4bn
Alain Bejjani, CEO of Majid Al Futtaim Holding.
By Sam Bridge
Wed 30 Jan 2019 03:08 PM

Dubai-based retail giant Majid Al Futtaim on Wednesday said group revenue grew by 8 percent reaching AED34.6 billion ($9.42 billion) in 2018 compared to the previous year.

The company also reported a 9 percent rise in EBITDA to AED4.6 billion over the same period while total assets were valued at AED60.4 billion with a net debt of around AED12.6 billion.

Majid Al Futtaim said its financial growth was driven by the expansion and diversification efforts across various geographies and by adopting a culture of operational excellence that promotes cost optimisation and efficiency.

Alain Bejjani, CEO of Majid Al Futtaim Holding, said: “2018 has been a year of growth for our company, despite the macroeconomic challenges that affected consumer sentiment. Our strategy to diversify our offering and geographical presence, as well as our commitment to customer centricity and technology investments has yielded great results.”

He said that during 2018, Majid Al Futtaim continued to pursue investment opportunities to enhance its digital capabilities and deliver a seamless omni-channel customer experience, while expanding its physical footprint.

The company celebrated the opening of two new shopping malls in the UAE and Oman, grew its hotel portfolio to 13 assets and added 33 grocery retail stores, growing its portfolio to 264.

Majid Al Futtaim Properties registered 1 percent revenue growth to end the year at AED4.6 billion. EBITDA increased by 2 percent to AED3 billion.

Majid Al Futtaim’s shopping malls welcomed 192 million customers during the year, a 4 percent increase, while total shopping mall occupancy stood at 95 percent.

Majid Al Futtaim Hotels experienced a decline in revenue per available room (RevPAR) due to current market conditions and reported average occupancy of 75 percent.

Majid Al Futtaim Retail generated strong revenue growth and finished the year at AED28 billion, an 8 percent increase compared to 2017, driven by the addition of new stores. EBITDA increased by 16 percent to AED1.4 billion, largely attributable to cost optimisation initiatives and higher sales in Egypt, Saudi, Kuwait and Kenya.

The Carrefour brand continues to cement its position as the largest grocery retailer in the region, increasing its market share by opening 33 new Carrefour hypermarkets and supermarkets during 2018.

Majid Al Futtaim Ventures’ revenue increased by 15 percent in 2018 to AED2.4 billion as VOX Cinemas continued its successful expansion across the region with 52 new screens added to reach 353.

The company said it continues to make progress with its development projects and will be bringing three key shopping malls to market in Oman, UAE and Egypt this year, with the launch of City Centre Suhar, My City Centre Masdar and City Centre Almaza.

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