Dubai – Mubasher: The UAE-based Majid Al Futtaim on Wednesday announced that total revenues grew 8% to AED 32.2 billion in 2017 as earnings before calculating interest, taxes, depreciation, and amortization (EBITDA) increased by 1% to AED 4.2 billion.
“The slower EBITDA growth predominantly resulted from a change in business mix across the portfolio, with food grocery retail growing at a faster rate than the higher margin Properties businesses,” according to the firm’s statement.
Majid Al Futtaim’s total assets amounted to AED 59.4 billion, while net debt hit around AED 10.4 billion.
Properties’ revenues increased 3% to AED 4.6 billion by the end of 2017, backed by strong performance of its shopping malls business.
Profits before calculating EBITDA advanced 3% to AED 2.9 billion, accounting for 69% of overall group EBITDA.
The firm hosted 186 million customers in 2017, with 6% up from a year earlier.
Occupancy of shopping malls reached 94%, backed by inaugurating Mall of Egypt in March 2017.
“Majid Al Futtaim hotels reported average occupancy of 76% and experienced a decline in revenue per available room (RevPAR), despite outperforming the broader hospitality market,” the statement added.
Majid Al Futtaim Retail’s revenues went up 8% to AED 25.9 billion by the end of 2017, compared to the year before.
Profits before calculating EBITDA decreased by 1.6% to AED 1.2 billion, as a result of Egypt's currency float, in addition to some disputes with Qatar.
During 2017, the Middle East operator of French retailer Carrefour SA opened eight Carrefour hypermarkets and, 21 supermarkets, and completed takeover of Retail Arabia.
Majid Al Futtaim Retail raised its outlets to 231 in 14 countries across Africa, Asia, and the MENA.
In Kenya, Majid Al Futtaim Retail inaugurated two new Carrefour stores during 2017.
Majid Al Futtaim Ventures’ revenues jumped 14% to AED 2.1 billion, in addition to AED 3 billion after adding joint ventures (JVs) and associates.
Majid Al Futtaim Ventures plans to inaugurate three shopping malls in 2018, including My City Centre Al Dhait in the UAE, City Centre Sohar and My City Centre Sur in Oman.
