UAE – Mubasher: Majid Al Futtaim (MAF), a leading integrated lifestyle provider based in Dubai, has reported a 1% year-on-year increase in revenue for the first half of 2019, reaching AED 17.9 billion.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose by 1% during the first six months of 2019 to AED 2.1 billion as compared to H1-18, according to a press release.
The Dubai-based retail giant’s operating cashflow stood at 115% of EBITDA, while the group’s assets rose by 7% to around AED 64 billion at the end of June 2019, backed by the introduction of IFRS16.
Meanwhile, the group’s net borrowings amounted to around AED 12.8 billion, MAF indicated.
The company has maintained its core businesses expansion plan across the region in H1-19 by adding 19 new Carrefour stores, two new shopping malls, and 65 new VOX Cinemas screens.
“Majid Al Futtaim’s sustainability agenda was further bolstered by a “low risk” environmental, social and governance (ESG) rating from Sustainalytics, and an ‘A’ rating from Morgan Stanley Capital International (MSCI),” the release highlighted.
As for MAF’s unit Majid Al Futtaim – Properties, it recorded a 3% drop in revenue and 1% decrease in EBITDA for H1-19 as compared to the year-ago period, reaching AED 2.1 billion and AED 1.5 billion, respectively.
In H1-19, the group’s shopping malls welcomed over 100 million visitors, while the total occupancy of shopping malls remained solid at 93%.
The shopping mall portfolio expanded to 25 destinations, with the opening of City Centre Suhar in Oman, and My City Centre Masdar in Abu Dhabi.
Moreover, Majid Al Futtaim hotels have seen a 2% increase in their average occupancy rate, growing to 78%, while reporting a slump in revenue per available room (RevPAR).
On the other hand, Majid Al Futtaim – Retail has reported flat revenue growth of AED14.6 billion at the end of June and EBITDA slipped by 1% year-on-year to AED 603 million.
The Carrefour brand has extended its presence across the region with the opening of 7 hypermarkets and 12 supermarkets during the same period.
Additionally, Majid Al Futtaim Ventures has registered a 16% growth in both revenue and EBITDA in H1-19, amounting to AED 1.3 billion and EBITDA at AED 137 million, respectively.
Future investments
Majid Al Futtaim plans to further expand its businesses across the region during the second half of 2019, while offering customers new experiences.
The shopping mall, communities, retail and leisure provider is set to open City Centre Almaza, expected to become one of the popular destinations for shopping and entertainment, in East Cairo, Egypt.
The group’s retail arm will inaugurate its first Carrefour store in Uganda in H2-19, and will add 12 new Carrefour stores in Egypt by the end of 2019.
The company will also launch a lifestyle rewards programme to provide customers with the opportunity to earn and burn points across the company’s portfolio of brands and assets.
It is worth noting that both Standard & Poor’s and Fitch Ratings have recently maintained Majid Al Futtaim’s rating at ’BBB’ with a stable outlook.
Furthermore, the company has refunded a $500 million bond that matured in July 2019 with the issuance of the world’s first benchmark corporate Green Sukuk, and the first Green Sukuk issued by a corporate in the region.
Majid Al Futtaim will use a 10-year $600 million issuance to finance its existing and future green projects, including green buildings, renewable energy, sustainable water management, and energy efficiency.
