UAE’s MAF Reports 11% Growth In Pre-Tax Profits

UAE retailer Majid Al Futtaim said on Monday that its earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 11 per cent year-on-year to reach Dhs3.3 billion in 2013.

The company reported that its EBITDA received a boost from improved profitability in its shopping malls and hotels.

According to the firm’s audited financial statements, MAF’s property business, which contributed around 67 per cent to EBITDA, grew 14 per cent last year while it’s retail business grew six per cent over 2012.

MAF’s revenues rose 10 per cent year-on-year to reach Dhs23 billion in 2013, the statement said. The group’s income was buoyed by strong growth in its retail business, higher rents and revenues from its hotels, increased cinema admissions and more earnings from new ventures.

However, the unlisted firm’s net profit from continuing operations fell by 0.6 per cent to Dhs1.93 million from Dhs1.94 million in 2012.

The conglomerate also purchased a 25 per cent minority stake from Carrefour S.A. in Majid Al Futtaim Hypermarket for Dhs2.55 billion last year.

Among its new ventures, MAF opened Beirut City Centre- its first shopping mall in the Levant region- and added eight new Carrefour hypermarkets and 10 supermarkets in 2013.

“2013 was a year of solid top line growth for the business. Revenue growth remained stable at 10 per cent year-on-year, while EBITDA grew to 11 per cent, reflecting strong performance across all parts of the business,” said Iyad Malas, chief executive officer, MAF Holding.

“We not only delivered robust business results but have also increased efficiency by uniting our companies under one umbrella corporate brand – Majid Al Futtaim – as we embark on the next chapter of our regional expansion plans.”

MAF also reported an improved debt profile with a reduction in secured debt to less than 10 per cent of total debt and early refinancing of maturirties via syndication of a $1.6 billion revolver line, the statement said.

The Dubai-based retail giant has aggressive expansion plans in the Middle East and aims to double its size by 2018. It also has plans to invest over Dhs3 billion in expanding its Dubai businesses over the next five years.

MAF underwent a rebranding late last year in a bid to unite its diverse group of companies under a common corporate identity.

The unlisted firm owns and operates 16 shopping malls and 11 hotels in the MENA region, including City Centre malls and Mall of the Emirates in Dubai. It also operates 19 hypermarkets and 24 regular outlets across the UAE.