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Majid Al Futtaim posts Dh17.9b H1 2019 group revenue

Majid Al Futtaim on Thursday announced its audit reviewed operational and financial results for the first six months of the year, noting that overall group revenue increased by one per cent to Dh17.9 billion, despite challenging market conditions and more cost-conscious consumer behaviour across the region.
EBITDA increased by one per cent, standing at Dh2.1 billion, while the group's increased focus on working capital management and operational excellence resulted in operating cashflow amounting to 115 per cent of EBITDA. The group's assets increased seven per cent to approximately Dh64 billion, on account of the introduction of IFRS16. Net borrowings stand at around Dh12.8 billion.
Alain Bejjani, chief executive officer of Majid Al Futtaim - Holding, said: "The strength and durability of our business has been a key factor in our financial performance for the first half of 2019, demonstrating the importance of geographic and business model diversification. Our focus on delivering a unique and innovative customer experience has enabled us to extend our customer base, while we have successfully optimised costs and created greater operating efficiencies. While we continue to make essential investments in talent and technology, I am also encouraged by the progress we are making towards our sustainability agenda, which is allowing us to have a positive influence on the economies, communities and societies where we do business."
During H1 2019, Majid Al Futtaim continued the expansion of its core businesses across the region with the addition of 19 new Carrefour stores, two new shopping malls, and 65 new Vox Cinemas screens. The company's digital transformation saw greater online penetration through its Carrefour and Vox Cinemas brands during the first half of the year, with 59 per cent of all ticket sales at Vox Cinemas being completed online, compared to 46 per cent during the same period last year.
Majid Al Futtaim - Properties registered a decline of three per cent in revenue and one per cent in EBITDA in the first six months of 2019, standing at Dh2.1 billion and Dh1.5 billion respectively. The company's shopping malls welcomed more than 100 million visitors in the first half of the year, while the total occupancy of shopping malls remained strong at 93 per cent. The shopping mall portfolio grew to 25 destinations, with the opening of City Centre Suhar in Oman, and My City Centre Masdar in Abu Dhabi, which is the company's first shopping mall in Abu Dhabi and the capital's most sustainable mall. Majid Al Futtaim hotels reported an increase of two per cent in their average occupancy rate, growing to 78 per cent, although a decline in revenue per available room (RevPAR) was reported in line with wider market trends.
Despite a reduction in discretionary spend and basket size, Majid Al Futtaim - Retail recorded flat revenue growth, standing at Dh14.6 billion in the first six months of the year. While revenue was driven by new store openings in Egypt, in particular, EBITDA decreased by one per cent to Dh603 million compared to the same period in 2018.
During the second half of 2019, Majid Al Futtaim is set to continue the expansion of its core businesses, while delivering new experiences for customers across the region. Majid Al Futtaim - Retail will open its first Carrefour store in Uganda in H2 2019, providing Ugandan customers with access to international standard retail experiences. Majid Al Futtaim - Retail will continue to open new stores in existing markets, including the addition of 12 new Carrefour stores in Egypt by the end of 2019.
- rohma@khaleejtimes.com