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Majid Al Futtaim Group will open malls, cinemas in H2 2020

Dubai's well-diversified group Majid Al Futtaim (MAF) Holding's first-half revenues fell three per cent to Dh17.3 billion, hit by the closure of malls and other properties in the second-quarter following the outbreak of the Covid-19 pandemic.
However, the group will carry on with its expansion plan in the second half in core markets and will open shopping malls in Sharjah and Oman and supermarkets in Uzbekistan, becoming the first entry of an international grocery retailer into the Central Asian country.
In addition, its subsidiary MAF Ventures will also open 55 new Vox Cinemas screens in H2 2020.
The group's assets decreased four per cent to Dh61.8 billion while EBITDA (earnings before interest, taxes, depreciation, and amortization) fell 27 per cent to Dh1.6 billion.
"Backed by ongoing prudent financial management, an agile mindset and the unrelenting drive of our people, we were able to respond quickly to course correct, reduce our cost base, and enhance our digital capabilities to meet the accelerated demand on multiple digital platforms. These measures enabled us to mitigate some of the impact of Covid-19 on our performance and maintain our 'BBB' rating," said Alain Bejjani, CEO of MAF Holding.
"While the timeline for a full-scale recovery is still uncertain, we are witnessing a slow reopening of the economy. We will do our part to rebuild consumer trust that is so crucial to revitalising the economy," he added.
Amid lockdowns and government mandated closures, the group waived rents at its 27 shopping malls across five markets to ease the financial burden on its tenants while stores were temporarily closed.
Among its subsidiaries, MAF Properties registered a decline of 26 per cent in revenue and 27 per cent in EBITDA, standing at Dh1.5 billion and Dh1.1 billion, respectively.
At its MAF Retail subsidiary, Carrefour's business witnessed strong growth despite the prevailing conditions. Revenue increased by four per cent and totalled Dh15.1 billion, while its EBITDA grew by 18 per cent to Dh709 million
MAF Ventures felt the greatest impact of the pandemic with a 46 per cent decrease in revenue and a 199 per cent decrease in EBITDA in H1 2020, standing at Dh690 million and Dh135 million, respectively.
The group's debt maturity profile is light over the next three years, with no material debt maturity until 2023, it said.
waheedabbas@khaleejtimes.com