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Majid Al Futtaim posts Dh1.9 billion in 2013 profit

Dubai: Dubai-based Majid Al Futtaim (MAF) Holding recorded a profit of Dh1.9 billion in 2013 compared to Dh1.6 billion in 2012, the company said in a statement on Monday.

“2013 was a year of solid top line growth for the business,” stated Iyad Malas, MAF Holding’s Chief Executive Officer.

The company’s revenue reached Dh23 billion in 2013, up 10 per cent over 2012, while net profit from continuing operations declined 0.6 per cent to Dh1.9 billion.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) touched Dh3.3 billion, marking an 11 per cent increase over 2012.

Also, total assets reached more than Dh39 billion, while net debt touched Dh7 billion.

Established in 1992, MAF owns and operates 17 shopping malls, 11 hotels and three mixed-use communities in the Middle East and North Africa. Its business units are MAF Properties, MAF Retail and MAF Ventures.

The company’s properties in Dubai include Deira City Centre, Mall of the Emirates and Mirdif City Centre, among others. It is the sole franchisee of hypermarket chain Carrefour in the region.

MAF stated that its property business made the biggest contribution last year (67 per cent), which grew by 14 per cent, followed by its retail business (30 per cent), up six per cent [over 2012].

Last year, the company launched a shopping mall in Beirut and opened a hotel in Bahrain.

It also acquired a 25 per cent minority stake owned by Carrefour Group in MAF Hypermarkets for Dh2.5 billion.

MAF said it would invest Dh3 billion in its Dubai operations. These include launching two new hotels, upgrading two existing ones, enhancing Mall of the Emirates and Deira City Centre, constructing a 14-screen cinema complex, and opening four new Carrefour supermarkets and two hypermarkets.

In February, Mall of the Emirates opened the Dh100 million redeveloped Fashion District, which features 30 stores. The 5,000 square metre Fashion District is the first phase of a Dh1 billion redevelopment project in the mall that is set for completion in late 2015.

The second phase is expected to be completed by early 2015 and will include an additional 25,000 square metres of new retail space.

Further, MAF has invested Dh200 million to expand Sharjah City Centre, which will see an additional 13,500sq. m of gross leasable area to make way for 28 retail outlets. Work on the redevelopment project is expected to start this summer.