Majid Al-Futtaim revenues grow 10 per cent

27 January 2014

Revenues reached $6.3bn in 2013

Dubai-based conglomerate Majid Al-Futtaim’s (MAF’s) annual revenues rose 10 per cent to AED23bn ($6.26bn) in 2013.

The investment-grade rated company reported total assets of AED39bn and net debt of around AED7bn in its preliminary results.

Revenues from properties increased by 13 per cent to AED3.5bn, with the footfall for its malls, which includes the City Centre brand, rising 7 per cent year-on-year. Revenue per available room at the company’s 11 hotels went up 20 per cent.

MAF’s retail operation sales grew 9 per cent in 2013, with revenues rising to AED18.7bn. The company’s revenues from leisure and entertainment, financial services and fashion grew 16 per cent to AED891m. 

The company acquired a minority stake for AED2.55bn from Carrefour, becoming full owner of its hypermarkets in the region in May, partially funding it through a bond issue in the last quarter of 2013.

“Our liquidity position is sufficient to cover the financing needs over the next two to three years. Having said that, the company will continue to look at further debt optimisation plans opportunistically,” said chief executive officer Iyad Malas.

“We continue to make significant progress with key organic growth in the retail market. In 2013, we expanded our footprint into the Levant region through the opening of Beirut City Centre. Future growth in the Middle East and North Africa will be driven by regional large-scale expansion plans for our portfolios in Egypt in addition to new malls envisaged in the Kingdom of Saudi Arabia and Oman, and residential projects in Lebanon, in addition to hypermarkets, cinemas, family entertainment centres and snow park openings.”

MAF has announced plans to invest AED3bn to expand its businesses in Dubai over the next five years, and is looking to develop shopping malls in Riyadh, Abu Dhabi and Lebanon.

In Egypt the company wants to broaden its Maadi City Centre and build a development near the airport.

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