Dubai: Majid Al Futtaim, reported strong results with revenues up 11% to Dhs 25 billion at end of its financial year.
Majid Al Futtaim, the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa, today reported strong financial performance and continued growth, one year on from its transformational rebrand, as the company prepares for further regional expansion.
Majid Al Futtaim’s preliminary and unaudited operational and financial results for the year ended 31st December 2014 confirm another steady year of growth, with total revenues growing by 11% to AED 25 billion. EBITDA from recurring operations grew by 10% year-on-year to reach AED 3.6 billion.
With an ambition to double the size of the business over the next five years, Majid Al Futtaim plans further investment to deliver world-class malls in the region. Additional hypermarkets and supermarkets, as well as family entertainment centres, are also planned. This expansion, combined with Majid Al Futtaim’s commitment to create positive economic impact in the countries in which it operates, will deliver thousands of new jobs in the region and create exciting destinations to support tourism growth.
The company continues to maintain a strong balance sheet with total assets valued at more than AED 45 billion and a net debt of around AED 8 billion. Both Fitch Ratings and Standard & Poor’s reaffirmed the company’s investment-grade rating of BBB, with a stable outlook during the year.
“Driven by our vision to create ‘great moments for everyone, every day’, the company’s ongoing modernisation, financial strength, and operational expansion have delivered strong financial performance and positive long-term impact to the region’s emerging markets,” Iyad Malas, chief executive officer at Majid Al Futtaim – Holding, said.
“Our rebrand united our companies under one umbrella corporate brand identity and vision, to provide synergy and stronger brand equity in all of our markets. This was an important exercise that has helped us position ourselves as pioneers in retail, shopping, leisure and entertainment and to achieve our ambition of doubling the size of the business in the next five years.”
“We will continue expanding our geographical footprint across the Middle East and North Africa, bringing innovative new experiences to new populations, with a strong focus on Egypt and Saudi Arabia. This is in addition to strengthening our assets and competitive position in our home market of the UAE,” Malas said.
Majid Al Futtaim issued its first 10 year USD 500 million bond in May 2014, extending the average life of the company’s debt portfolio. This was the first 10 year issuance out of Dubai since 2010, and the longest tenure achieved by a Dubai corporate issuer.