Majid Al Futtaim has reported double-digit growth in revenues for the first six months of 2018, driven in part by the UAE firm's diversification and expansion efforts.
According to unaudited preliminary results, overall group revenue for H1 2018 stood at $48.5bn (AED17.8bn), a 13% year-on-year increase on the first six months of 2017. The group’s assets were valued at approximately $165.2bn (AED60.7bn), with net debt in this period standing at $30.2bn (AED11.1bn).
The group, which has shopping malls, hotels, cinemas, and mixed-use communities across the Middle East in its portfolio, said its top-line growth has largely been driven by the group’s expansion and diversification efforts, as well as its “ongoing focus on operational excellence across all operating companies and business units”.
Majid Al Futtaim’s property division, which welcomed 98 million visitors in H1 2018, reported a modest 1% revenue increase in the period, while its retail business – which opened 12 Carrefour hypermarkets and supermarkets in H1 2018 – saw a 15% hike in revenue, helped in part by “significant” growth in Kenya and Egypt.
Majid Al Futtaim Venutures also performed strongly this year, with revenues increasing 13% in the first six months of the year to hit $3bn (AED1.1bn).
Described by the firm as a “milestone achievement”, this segment inaugurated its first Vox Cinemas facility in Saudi Arabia in the first half of the year, part of an ambitious plan to open 6,000 screens in the kingdom over the coming five years.
Alain Bejjani, chief executive officer of Majid Al Futtaim Holding, said the solid results demonstrated the “continued growth in the midst of challenging market conditions”.
He added: “Our resilience is strengthened by strategic investments that will future-proof our business and people for the changing world around us.
“We remain committed to delivering on our growth plans, keeping our financial discipline and maintaining careful risk management, while providing exceptional customer experiences.”