UAE’s Majid Al Futtaim Reports Pre-Tax Profit Growth Of 10% In 2014

UAE-based retail conglomerate Majid Al Futtaim (MAF) said that its earnings before interest, taxes, depreciation and amortization (EBITDA) grew 10 per cent year-on-year to reach Dhs3.6 billion in 2014.

Total revenues of MAF grew by 11 per cent to reach Dhs25 billion last year, it said in an earnings statement.

The retail group also noted that it has total assets worth more than Dhs45 billion and a net debt of Dhs8 billion as of end-2014.

Following a year of strong growth, MAF said that it aims to double the size of its business over the next five years.

MAF’s property business, which contributed 66 per cent to the group’s overall EBIDTA, reported a pre-tax profit growth of seven per cent to reach Dhs2.4 billion last year while its retail business grew 16 per cent to reach Dhs1.1 billion.

Meanwhile its ventures business, which consists of a group of companies operating in industries such as leisure, entertainment, financial services and joint ventures, saw pre-tax profits rising by 26 per cent to reach Dhs160 million.

The growth in MAF’s ventures business was driven by the launch of new stores and additional outlets, according to the earnings statement.

In 2014, the company opened three new VOX Cinemas in Oman and Abu Dhabi, one new Magic Planet, five food & beverage outlets, six new fashion stores (including Abercrombie & Fitch and Hollister) and the first Lego certified store in the region.

MAF also acquired a stake in Beam Wallet, a mobile payments technology firm last year.

At Mall of Egypt, MAF Ventures plans to introduce Ski Egypt, an indoor ski slope in addition to opening a 21-screen VOX Cinema, the largest multiplex in the country.

“The company’s ongoing modernisation, financial strength, and operational expansion has delivered strong financial performance and positive long-term impact to the region’s emerging markets,” said Iyad Malas, chief executive officer at Majid Al Futtaim – Holding.

He also said that the company’s rebranding, which took place at the end of 2013, will help MAF achieve its ambition of doubling its size.

Malas added that MAF will continue to expand its business across the Gulf. It plans to open more malls, supermarkets and entertainment centres across the region.

“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.”

In 2014, MAF opened 19 new Carrefour stores, creating 1,700 jobs in the region. The retail group also opened the fashion district in Mall of the Emirates and the first neighbourhood shopping centre My City Centre in Sharjah.