Majid Al Futtaim reports 11% growth in H1 2016
The Dubai-based property and retail group’s overall revenues increased by 9% year-on-year to $3.3bn (AED12.3bn), driven by entry into new markets
Dubai-based property and retail group, Majid Al Futtaim, reported an 11% increase in revenues for the first half of 2016, to $4.1bn (AED15.2bn) compared to the same period in 2015.
Overall revenues increased by 9% year-on-year to $3.3bn (AED12.3bn), and was driven primarily by entry into new markets, including the opening of its first Carrefour hypermarkets in Kenya and Kazakhstan, as well as additional store openings in existing markets.
The company’s total assets were valued at $14.1bn (AED52bn), with a net debt of around $2.7bn (AED10bn), according to a statement.
Alain Bejjani, CEO of Majid Al Futtaim Holding, said: “We have delivered another sustained period of growth during the first half of 2016 by continuing to raise the bar when it comes to customer experience, while expanding our geographical footprint. For the first time, we have entered into sub-Saharan Africa and Kazakhstan through Carrefour and have expanded our leisure, entertainment and fashion businesses across markets.
“Our financial results during the first half once again show the resilience of our business model despite softening economic conditions. Going forward, we will press ahead with our expansion plans, while developing our business in existing and new markets when the right opportunities are identified and with a continued commitment to our prudent financial and risk management approach.”
Occupancy across all shopping malls remained strong at 98%.
Majid Al Futtaim’s comparable hotels recorded occupancy rates of 77% and experienced a decline in revenue per available room (RevPAR) of about 11% compared to the first half of 2015,
In April 2016, the Aspen Chalets at the Kempinski Mall of the Emirates were opened to the public and in June construction work commenced on the Aloft Dubai City Centre Deira, which is expected to be completed in 2018.
Majid Al Futtaim Retail launched eleven new stores, which strengtheneed its presence to more than 160 outlets in 15 countries across the Middle East, Africa and Central Asia.