Highlights:

H1 2012 gross revenue grew to AED 10.7 billion, up 15% year-over-year

EBITDA up by 17% year-over-year to AED 1.5 Billion

Strong growth across all three businesses

Opened first Carrefour Hypermarket in Erbil, Iraq expanding the Group's footprint to 13 countries

Company's BBB with stable outlook rating reaffirmed by both Fitch and Standard & Poor's

Dubai, 17 September 2012 - Majid Al Futtaim Holding LLC, the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa, ‎ released today its condensed consolidated interim financial statements for the half year ended 30 June 2012.

Iyad Malas, CEO of Majid Al Futtaim Holding, said: "2012 has already been a successful and busy year for us.  We opened our 11th shopping mall in Fujairah in April of this year with full retailer occupancy.  We have seen turnarounds in markets previously impacted by the Arab spring, with tenant sales increasing about 44% in Egypt and about 23% in Bahrain, in the first half of the year. Tenant sales in the UAE and Oman grew by 13%. 

We have a robust development pipeline in place for both our Shopping Mall and Retail portfolios.  Our shopping mall strategy remains focused on strengthening our regional shopping mall presence, with developments in both Lebanon and Egypt moving forward and strategic opportunities in the Kingdom of Saudi Arabia, Abu Dhabi and Azerbaijan under review.  We are continuing expansion of the Carrefour franchise, with plans to open two additional hypermarkets in the remainder of 2012, including our first store in Georgia this month."

The Group's gross revenues reached AED 10.7 billion, a 15% increase on H1 2011, at the same time its EBITDA from recurring operations grew by 17% year-on-year to reach over AED 1.5 billion.  Total assets are valued at AED 37.0 billion and net debt is AED 7.3 billion.

The Group continues to maintain an excellent liquidity position and has demonstrated its ability to access diversified sources of funding.   Following its successful debut Sukuk in February 2012, the Group issued a seven year USD 500 million bond in July 2012, as part of its Reg S EMTN programme.

The Group's current liquidity position is sufficient to cover over two years of its financing requirements, which include cash flow stemming from net working capital, planned capital expenditure and servicing of maturing debt. Financing initiatives are now focused on improving the profile of the company's debt portfolio such as reducing secured debt, refinancing to achieve more flexible & improved terms.

Majid Al Futtaim Properties saw its revenue increase by a strong 16% to AED 1.5 billion and EBITDA rise by about 12% to AED 0.97 billion, contributing about 64% of the group's EBITDA.

Majid Al Futtaim Retail saw its revenue increase by 15% year over year to AED 8.9 billion and EBITDA rise by 23% to AED 467 million, contributing about 31% of the group's EBITDA.   Including its first store in Iraq, the business opened six new Carrefour hypermarkets in the first half of the year, bringing the total to 49 hypermarkets and 38 supermarkets.  

Majid Al Futtaim Ventures saw its revenue increase by 11% to AED 388 million and EBITDA rise by about 44% to AED 83 million.

-Ends-

About Majid Al Futtaim Holding
Founded in 1992, Majid Al Futtaim Holding is the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa, with operations in 13 countries and over 24,000 employees.

Majid Al Futtaim Holding has been assigned the highest credit rating (BBB) among privately-held corporates in the Middle East. Its operations are carried out by three complementary, wholly-owned subsidiaries:

  • Majid Al Futtaim Properties, which owns and operates 11 shopping malls and 10 operational hotels in MENA, with developments underway in Lebanon and Egypt.

  • Majid Al Futtaim Retail, which holds exclusive rights to Carrefour franchise in 19 markets across MENA and central Asia. It owns 75% interest in a Joint Venture with Carrefour S.A, and operates a portfolio of 50 hypermarkets and 44 supermarkets in 12 countries.

  • Majid Al Futtaim Ventures develops, owns and operates all leisure and entertainment facilities at Majid Al Futtaim malls including Ski Dubai, VOX Cinemas, Magic Planet, iFly, among others. It is also parent to a consumer finance company issuing 'Najm' credit cards and a Fashion retail business. In addition, it also has joint venture operations with Dalkia and Orix Corporation.

For further information please contact:
Media     
English:
Alex Blake-Milton
Brunswick Group
Phone: +97144466270
Mob:  +971506947589
Email: ablakemilton@brunswickgroup.com

Katharine Crallé
Brunswick Group
Phone:  +97144466270
Mob:  +971561740292
Email: kcralle@brunswickgroup.com

© Press Release 2012