Dubai - Mubasher: Majid Al Futtaim on Tuesday reported its preliminary and unaudited operational and financial results for the full year 2016.
The statements showed “resilient growth” as the company’s EBITDA increased 8% to AED 4.1 billion ($1.12 billion) during a year that saw several major expansion plans announced across the region.
The leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia, reported a 9% growth in revenue for 2016, reaching AED 29.9 billion, compared to AED 27.3 billion in 2015, according to the statement.
“Performance was largely driven by the addition of several new hypermarkets, supermarkets and family entertainment centres across the group’s geographic footprint,” Majid Al Futtaim noted, adding that it has continued to maintain a strong balance sheet with total assets valued at around AED 53 billion and a net debt of around AED 9.6 billion.
In 2016, Majid Al Futtaim commenced construction of its 103,000 sqm City Centre Almaza, in Cairo, Egypt as well as the Aloft Hotel, in City Centre Deira in Dubai. The company also began expansions at City Centre Ajman and City Centre Sharjah.
The UAE-based conglomerate also expanded its Carrefour network with 10 new supermarkets and 10 new hypermarkets, including its first hypermarket in Kenya.
Majid Al Futtaim Properties posted a 10% revenue increase in the full-year 2016 to AED 4.5 billion, while EBITDA rose by 8% to AED 2.8 billion, contributing about 68% of the group’s EBITDA, according to the statement.
The properties division welcomed 175 million customers, up 2% year-on-year, while total occupancy of its shopping malls remained strong at 98%.
On the other hand, the hotels division suffered an 8% decline in revenue per available room (RevPAR), despite outperforming the broader hospitality market which dropped by 12% in 2016.
Commenting on the company’s financials for 2016, Majid Al Futtaim CEO Alain Bejjani stated that these results highlight the strength of his company’s business model and its ability to capitalise on new opportunities, all while navigating through new market challenge.
“This 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 omnichannel experiences. We will also further progress our expansion plans in markets including the UAE, Egypt, Oman, and Saudi Arabia,” he added.
